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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001206774-03-000309.txt : 20030414
<SEC-HEADER>0001206774-03-000309.hdr.sgml : 20030414
<ACCEPTANCE-DATETIME>20030414150416
ACCESSION NUMBER:		0001206774-03-000309
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20030228
FILED AS OF DATE:		20030414

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NORTHERN TECHNOLOGIES INTERNATIONAL CORP
		CENTRAL INDEX KEY:			0000875582
		STANDARD INDUSTRIAL CLASSIFICATION:	CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670]
		IRS NUMBER:				410857886
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11038
		FILM NUMBER:		03648499

	BUSINESS ADDRESS:	
		STREET 1:		6680 N HIGHWAY 49
		CITY:			LINO LAKES
		STATE:			MN
		ZIP:			55014
		BUSINESS PHONE:		6127841250

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NORTHERN INSTRUMENTS CORP
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>d12486.htm
<TEXT>
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<p>&nbsp;</p> </div> </div> <BR>
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><b><font SIZE=4>UNITED STATES </font></b><br><b><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><b><font size=2>Washington, D.C. 20549</font></b></p>
<p style='margin-top:12pt;margin-bottom:0pt;'><HR noshade width=120>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><b><font SIZE=4>FORM 10-QSB</font></b></p>
<p style='margin-top:12pt;margin-bottom:0pt;'><HR noshade width=120>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><b><font size=2>Quarterly Report Pursuant to Section 13 or 15(d) of</font></b><br><b><font size=2>The Securities Exchange Act of 1934</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=1>&nbsp;</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="50">&nbsp;</td><td align=center valign=top width="280"><font size=2>For the Quarterly Period Ended:</font><br>
<b><font size=2>February 28, 2003</font></b><br></td>
<td align=center width="280">&nbsp;</td><td align=center valign=top width="280"><font size=2>Commission File Number</font><br>
<b><font size=2>1-11038</font></b></td><td width="50">&nbsp;</td></tr></table><br>
<p style='margin-top:12pt;margin-bottom:0pt;'><HR noshade width=120>
<p style=' margin-bottom:0pt;text-align:center; margin-top:8pt;'><b><font SIZE=5>NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION</font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>
<p style='margin-top:12pt;margin-bottom:0pt;'><HR noshade width=120>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=1>&nbsp;</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="50">&nbsp;</td><td align=center valign=top width="280"><b><font size=2>Delaware</font></b><br>
<font size=2>(State of Incorporation)</font><br></td>
<td align=center width="280">&nbsp;</td><td align=center valign=top width="280"><b><font size=2>41-0857886</font></b><br>
<font size=2>(I.R.S. Employer Identification Number)</font></td><td width="50">&nbsp;</td></tr></table><br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><b><font size=2>6680 N. Highway 49, Lino Lakes, MN  55014</font></b><br><font size=2>(Address of principal executive offices)</font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><b><font size=2>(651) 784-1250</font></b><br><font size=2>(Registrant&#146;s telephone number)</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><font SIZE=2>YES [X]</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>NO [&nbsp;&nbsp;&nbsp;]</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Indicate the number of shares outstanding of each of the issuer&#146;s classes of common stock, as of the latest practicable date.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="50">&nbsp;</td><td align=center valign=top width="280"><u><b><font size=1>Class</font></b></u><br>
<font size=2>Common Stock, $0.02 par value</font><br></td>
<td align=center width="280">&nbsp;</td><td align=center valign=top width="280"><u><b><font size=1>Outstanding as of April 10, 2003</font></b></u><br>
<font size=2>3,632,902</font></td><td width="50">&nbsp;</td></tr></table><br>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt;text-align:right; margin-top:0pt;'><i><font size=2>This document consists of 19 pages</font></i></p>
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<p>&nbsp;</p> </div> </div> <BR>


<br><p style='margin-bottom:0pt;text-align:left'><font size=2>&nbsp;</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>PART I - FINANCIAL INFORMATION</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><font SIZE=2>ITEM 1 - FINANCIAL STATEMENTS</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION</font></b><br><b><font SIZE=2>AND SUBSIDIARY</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-left:0;margin-bottom:0pt;margin-top:2.0pt;'><b><font size=2>CONSOLIDATED BALANCE SHEETS (Unaudited)</font></b></p> </td>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2.0pt;margin-left:-.7pt;margin-bottom:.0001pt;'>&nbsp;</p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><b><font size=1>August 31,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'>&nbsp;<b></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p >&nbsp;</p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p >&nbsp;</p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p >&nbsp;</p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-right: 0in;margin-left:8.65pt;margin-bottom:.0001pt;text-align: center;text-indent:-8.65pt;line-height:11.0pt;'><b><font SIZE=2>ASSETS</font></b><b></b></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p >&nbsp;</p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p >&nbsp;</p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p >&nbsp;</p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font SIZE=2>CURRENT ASSETS:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Cash and cash equivalents</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=63 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>127,538</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=62 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>230,274</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Investments available-for-sale</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>2,391,456</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>4,008,417</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Receivables:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Trade excluding corporate joint ventures, less allowance for doubtful account of $11,563 and $12,477, respectively</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>1,094,428</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>1,009,674</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Trade corporate joint ventures</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>236,663</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>239,967</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Technical and other services, corporate joint ventures</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>653,083</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>625,294</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Income taxes</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>177,088</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>61,925</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Inventories</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>955,791</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>859,228</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Prepaid expenses</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>294,986</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>85,367</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Deferred income taxes</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>45,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>45,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:.6in;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Total current assets</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>5,976,032</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>7,165,146</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>PROPERTY AND EQUIPMENT, net</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>440,601</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>409,780</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font SIZE=2>OTHER ASSETS:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Investments in corporate joint ventures:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Industrial chemical</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>5,853,058</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>4,919,600</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Industrial non-chemical</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>285,772</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>260,225</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Investment in European holding company</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>30,812</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Deferred income taxes</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>395,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>395,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Notes receivable and foreign deposit</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>1,331,815</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>456,759</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Industrial patents, net</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>227,601</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>186,980</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Other</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>201,541</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>263,141</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>8,294,787</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>6,512,517</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=63 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>14,711,420</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=62 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>14,087,443</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-right: 0in;margin-left:8.65pt;margin-bottom:.0001pt;text-align: center;text-indent:-8.65pt;line-height:11.0pt;'><b><font size=2>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</font></b><b></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p >&nbsp;</p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'>&nbsp;</p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p >&nbsp;</p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'>&nbsp;</p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p >&nbsp;</p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font SIZE=2>CURRENT LIABILITIES:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Accounts payable</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=63 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>256,498</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=62 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>492,102</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Note payable</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>400,000</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Accrued liabilities:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Payroll and related benefits</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>92,799</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>97,380</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Other</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>292,753</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>298,730</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:34.55pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Total current liabilities</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>1,042,050</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>888,212</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font SIZE=2>DEFERRED GROSS PROFIT</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>25,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>25,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font SIZE=2>COMMITMENTS AND CONTINGENCIES</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>STOCKHOLDERS&#146; EQUITY:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Preferred stock, no par value, authorized 10,000 shares, none issued</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Common stock, $0.02 par value per share; authorized 10,000,000 shares; issued and outstanding 3,632,902 and 3,644,551, respectively</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>72,658</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>72,891</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Additional paid-in capital</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>4,205,384</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>4,228,682</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Retained earnings</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>9,641,834</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>9,322,258</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Accumulated other comprehensive loss (see Note 9)</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>(275,507</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>(449,600</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:34.55pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=2>Total stockholders&#146; equity</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>13,644,369</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>13,174,231</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:0in;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;line-height: 11.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=63 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>14,711,420</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>$</font></p> </td>
<td width=62 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:0in;line-height:11.0pt;'><font size=2>14,087,443</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:18pt;'><i><font size=2>See notes to consolidated financial statements.</font></i></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 2</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-left:0;margin-bottom:0pt;margin-top:2.0pt;'><b><font size=2>CONSOLIDATED STATEMENTS OF INCOME (Unaudited)</font></b></p> </td>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2.0pt;margin-left:-.7pt;margin-bottom:.0001pt;'>&nbsp;</p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;&nbsp;</p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>Three Months Ended</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>Six Months Ended</font></b></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>NORTH AMERICAN OPERATIONS:</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Sales</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=55 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>2,001,116</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,564,085</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,982,187</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,606,323</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Cost of goods sold</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>958,424</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>798,411</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,875,016</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,720,182</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Gross profit</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,042,692</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>765,674</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>2,107,171</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,886,141</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Operating expenses:</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Selling</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>451,537</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>385,929</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>923,028</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>648,955</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>General and administrative</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>524,010</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>485,117</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>976,600</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>952,018</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:25.9pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Research, engineering, and technical support</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>193,820</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>183,544</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>404,530</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>373,640</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,169,367</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,054,590</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>2,304,158</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,974,613</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>NORTH AMERICAN OPERATING LOSS</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(126,675</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(288,916</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(196,987</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(88,472</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>CORPORATE JOINT VENTURES AND EUROPEAN HOLDING COMPANY:</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Equity in income of industrial chemical corporate joint ventures and European holding company</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>432,606</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>184,176</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>737,412</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>369,227</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Equity in loss of industrial non-chemical corporate joint ventures</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(4,728</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(50,349</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>&#151;</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Equity in loss of business consulting corporate joint ventures</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(23,750</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(23,750</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(47,500</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(47,500</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Fees for technical support and other services provided to all corporate joint ventures</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>688,518</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>533,490</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,303,525</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,102,850</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Expenses incurred in support of all corporate joint ventures</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(558,215</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(479,097</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(1,109,280</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(757,455</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>INCOME FROM ALL CORPORATE JOINT VENTURES AND EUROPEAN HOLDING COMPANY</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>534,431</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>214,819</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>833,807</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>667,122</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>INTEREST INCOME</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>48,657</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>6,830</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>70,914</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>11,645</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>456,413</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(67,267</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>707,735</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>590,295</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>INCOME TAX EXPENSE (BENEFIT)</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>66,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>(90,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>65,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>80,000</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>NET INCOME</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=55 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>390,413</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>22,733</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>642,735</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>510,295</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>NET INCOME PER COMMON SHARE:</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Basic</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=55 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.11</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.01</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.18</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.14</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Diluted</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=55 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.11</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.01</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.18</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>.14</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Basic</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,635,086</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,669,273</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,628,063</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,670,076</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Diluted</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,636,916</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,669,273</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,628,978</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>3,670,076</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:18pt;'><i><font size=2>See notes to consolidated financial statements.</font></i></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 3</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-left:0;margin-bottom:0pt;margin-top:2.0pt;'><b><font size=2>CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)</font></b><br> <b><font SIZE=2>SIX MONTHS ENDED FEBRUARY 28, 2003 AND 2002</font></b></p> </td>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2.0pt;margin-left:-.7pt;margin-bottom:.0001pt;'>&nbsp;</p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>2003</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>2002</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font SIZE=2>CASH FLOWS FROM OPERATING ACTIVITIES:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Net income</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=62 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>642,735</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>510,295</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Adjustments to reconcile net income to net cash (used in) provided by operating activities:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Depreciation expense</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>95,357</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>104,326</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Amortization expense</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,769</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Equity in (income) loss from corporate joint ventures:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Industrial chemical</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(737,412</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(369,227</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Industrial non-chemical</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>50,349</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Business consulting</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>47,500</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>47,500</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Dividends received from corporate joint ventures</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>375,489</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>78,838</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Gain on sale of equipment</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3,605</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Change in current assets and liabilities:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Receivables:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Trade excluding corporate joint ventures</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(84,754</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>99,946</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Trade corporate joint ventures</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(27,789</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(25,144</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Technical and other services receivables, corporate joint ventures</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,304</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>61,993</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Income taxes</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(115,163</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(17,723</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Inventories</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(96,563</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>67,499</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Prepaid expenses and other</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(148,019</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(390,209</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Notes receivable and foreign deposits</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(875,056</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(50,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Accounts payable</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(235,604</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2,092</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Accrued liabilities</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(10,559</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,989</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:51.85pt;text-indent:-8.65pt;'><font size=2>Total adjustments</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,758,755</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(389,304</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:51.85pt;text-indent:-8.65pt;'><font size=2>Net cash (used in) provided by operating activities</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,116,021</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>120,991</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font SIZE=2>CASH FLOWS FROM INVESTING ACTIVITIES:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Sale of investments available-for-sale</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,616,961</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Proceeds from the sale of equipment</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,605</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Investment in joint ventures:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Industrial chemical</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(9,850</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(15,000</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Industrial non-chemical</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(63,486</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Business consulting</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(47,500</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(47,500</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Additions to property</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(126,177</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(104,325</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Partial return of original investment in European holding company</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>30,812</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>178,936</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Additions to industrial patents</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(44,390</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(116,718</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:51.85pt;text-indent:-8.65pt;'><font size=2>Net cash provided by (used in) investing activities</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,359,975</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(104,607</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font SIZE=2>CASH FLOWS FROM FINANCING ACTIVITIES:</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Dividend paid to shareholders</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(309,204</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Repurchase of common stock</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(37,486</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(102,097</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:51.85pt;text-indent:-8.65pt;'><font size=2>Net cash used in financing activities</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(346,690</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(102,097</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font SIZE=2>NET DECREASE IN CASH AND CASH EQUIVALENTS</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(102,736</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(85,713</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font SIZE=2>CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>230,274</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,238,283</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font SIZE=2>CASH AND CASH EQUIVALENTS AT END OF PERIOD</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=62 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>127,538</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>3,152,570</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Supplemental disclosure of non-cash financing activities:</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Note payable in connection with equity joint venture</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=62 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>400,000</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:18pt;'><i><font size=2>See notes to consolidated financial statements.</font></i></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 4</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION</font></b><br><b><font SIZE=2>AND SUBSIDIARY</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><b><font size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)</font></b></p> </td>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2.0pt;margin-left:-.7pt;margin-bottom:.0001pt;'>&nbsp;</p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>INTERIM FINANCIAL INFORMATION</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, to present fairly the consolidated financial position of Northern Technologies International Corporation and Subsidiary (the Company) as of February 28, 2003 and the results of their operations for the three and six months ended February 28, 2003 and 2002, and their cash flows for the six months ended February 28, 2003 and 2002, in conformity with accounting principles generally accepted in the United States of America.</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>These financial statements should be read in conjunction with the financial statements and related notes as of and for the year ended August&nbsp;31, 2002 contained in the Company&#146;s filing on Form&nbsp;10-KSB dated November&nbsp;15, 2002 and with Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations appearing on pages 7 through 12 of this quarterly report.</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>Certain fiscal year 2002 amounts have been reclassified to conform to fiscal year 2003 presentations. These reclassifications had no effect on stockholders&#146; equity, sales, or net income as previously reported.</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company accounts for its stock option plans using the intrinsic value method and has adopted the &#147;disclosure only&#148; provision of SFAS No. 123, as amended in 2002 by SFAS No. 148, Accounting for Stock-Based Compensation - Transition and Disclosure. No compensation cost has been recognized for the stock options granted under the various stock incentive plans. </font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>In November 2002, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 45, Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others (FIN 45). FIN 45 clarifies the requirements for a guarantor&#146;s accounting for and disclosure of certain issued and outstanding guarantees. The initial recognition and initial measurement provisions of FIN 45 are applicable to guarantees issued or modified after December 31, 2002. Adoption of this statement did not have a material effect on the Company&#146;s financial statements.</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>3.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>INVENTORIES</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>Inventories consist of the following:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="97%" border=0 cellspacing=0 cellpadding=0 style='margin-left:25.9pt; border-collapse:collapse'> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>August 31,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Production materials</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>339,788</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=46 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>249,596</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Work in process</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>&#151;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,737</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Finished goods</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>616,003</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>607,895</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>955,791</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=46 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>859,228</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 5</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>4.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>PROPERTY AND EQUIPMENT</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>Property and equipment consist of the following:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="97%" border=0 cellspacing=0 cellpadding=0 style='margin-left:25.9pt; border-collapse:collapse'> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><b><font size=1>August 31,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-bottom:0pt;margin-top:1.0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Land</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=55 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>29,097</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=51 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>29,097</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Buildings and improvements</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>544,126</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>521,480</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Machinery and equipment</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>773,664</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>693,245</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,346,887</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>1,243,822</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Less accumulated depreciation</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>906,086</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>834,042</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:1.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=55 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>440,601</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>$</font></p> </td>
<td width=51 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-bottom:0pt;margin-top:1.0pt;'><font size=2>409,780</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>5.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>NOTES RECEIVABLE AND FOREIGN DEPOSITS</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>Notes receivable and foreign deposits consist of the following:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="97%" border=0 cellspacing=0 cellpadding=0 style='margin-left:25.9pt; border-collapse:collapse'> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>August 31,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Notes receivable from North American operations</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>636,060</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>206,473</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Notes receivable from industrial chemical corporate joint venture partners</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>250,286</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>250,286</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Foreign deposits</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>445,469</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>1,331,815</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>$</font></p> </td>
<td width=47 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>456,759</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>6.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>INVESTMENTS IN CORPORATE JOINT VENTURES</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>During the six months ended February 28, 2003, the company invested in a variety of new and existing corporate joint ventures. </font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company invested $30,812 in a new industrial chemical corporate joint venture in Holland. This investment was financed by the extinguishment of the investment in the European holding company. The Company has a 50% ownership interest in the new entity. The new entity had no operations prior to the Company&#146;s investment. </font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company invested $500,000 in a new industrial chemical corporate joint venture in the United States. The company has contributed $100,000 cash and has a $400,000 note payable due to the joint venture as of February 28, 2003 which it anticipate paying in full prior to fiscal year end 2003. The Company obtained a 50% ownership interest in a company that makes specialty additives to be used in industrial and personal care products. The new entity had no operations prior to the Company&#146;s investment. </font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company invested $63,486 in a new industrial non-chemical corporate joint venture in Germany. The Company obtained a 10% ownership interest in this existing German GmbH. The Company will partner with the German GmbH to market and sell welding machinery through the existing corporate joint venture network. </font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company invested $35,000 in an existing business consulting corporate joint venture in the United States. The Company obtained a 50% ownership interest in this company that provides corporate representation at international and private financial institutions in Washington, D.C.</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company invested $12,500 in another existing business consulting corporate joint venture in the United States. The Company obtained a 25% ownership interest in this company to utilize various government and military associations.</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company also received a portion of its original investment in NTI ASEAN, LLC back in the amount of $120,962. The Company&#146;s ownership interest remained unchanged at 50%.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 6</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>7.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>STOCKHOLDERS&#146; EQUITY</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>During the six months ended February 28, 2003, the Company purchased and retired 11,649 shares of common stock for $37,486.</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>8.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>SUPPLEMENTAL CASH FLOW INFORMATION</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>During the six months ended February 28, 2003, the Company declared a cash dividend of $.085 per share that it paid on December 18, 2002 to shareholders of record on December 4, 2002.</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>9.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>TOTAL COMPREHENSIVE INCOME (LOSS)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="97%" border=0 cellspacing=0 cellpadding=0 style='margin-left:25.9pt; border-collapse:collapse'> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Three Months Ended</font></b></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Six Months Ended</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=5 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Net income</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>390,413</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>22,733</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=54 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>642,735</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=53 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>510,295</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Other comprehensive income (loss) &#150;foreign currency translation adjustment</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>231,701</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(91,284</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>174,093</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(188,439</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=2 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Total comprehensive income (loss)</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>622,114</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=56 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2> (68,551</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>)</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=54 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>816,828</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=8 valign=bottom style='background:#EAF9E8;padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width=53 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>321,856</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=3> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>10.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>NET INCOME PER SHARE</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><font size=2>ITEM 2 - MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font size=2>Critical Accounting Policies</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The consolidated financial statements include accounts of the Company and its wholly owned subsidiary. All significant intercompany transactions have been eliminated. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Sales Originating in North America</font></i><font size=2> - The Company considers sales originating in North America to be all sales shipped/invoiced from the Company&#146;s facilities located in Minnesota and Ohio. There are no sales from the international corporate joint ventures included in the amount as the Company&#146;s investments in corporate joint ventures are accounted for using the equity method.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Cash Equivalents</font></i><font size=2> - The Company considers investments with an original maturity of three months or less to be cash equivalents.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Investments Available for Sale - </font></i><font size=2>The Company accounts for securities available for sale in accordance with Statement of Financial Accounting Standards No. 115, </font><i><font size=2>Accounting for Certain Investments in Debt and Equity Securities </font></i><font size=2>(&#147;SFAS No. 115&#148;). SFAS No. 115 requires that available-for-sale securities be carried at fair value, with unrealized gains and losses reported as other comprehensive income within stockholders&#146; equity, net of applicable income taxes. Realized gains and losses and declines in value deemed to be other-than-temporary on available-for-sale securities are included in other income. Fair value of the securities is based upon the quoted market price on the last business day of the quarter or fiscal year. The cost basis for realized gains and losses on available-for-sale securities is determined on a specific identification
basis. At February 28, 2003, the Company&#146;s available-for-sale securities consisted of commercial paper, corporate debt, certificates of deposit and discount notes with a cost basis and accrued interest income totaling $2,391,456 which approximates fair value.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Inventories </font></i><font size=2>- Inventories are recorded at the lower of cost (first-in, first-out basis) or market.</font></p>
<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 7</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Property and Depreciation</font></i><font size=2> - Property and equipment are stated at cost. Depreciation is computed using the straight-line method based on the estimated service lives of the various assets as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Buildings and improvements</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:-.7pt;'><font size=1>&nbsp;</font></p> </td>
<td width=102 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;text-align:right;'><font size=2>5-20 years</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:-.7pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Machinery and equipment</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:-.7pt;'><font size=1>&nbsp;</font></p> </td>
<td width=102 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;text-align:right;'><font size=2>3-10 years</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:-.7pt;'><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Investments in Corporate Joint Ventures </font></i><font size=2>- Investments in corporate joint ventures are accounted for using the equity method. Intercompany profits on inventories held by the corporate joint ventures that were purchased from the Company have been eliminated based on the Company&#146;s ownership percentage in each corporate joint venture.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Recoverability of Long-Lived Assets - </font></i><font size=2>The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. The Company determines potential impairment by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products. Should the sum of the expected undiscounted future net cash flows be less than the carrying value, the Company would determine whether an impairment loss should be recognized. An impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the asset. As of February 28, 2003, the Company did not consider any of its assets impaired.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Income Taxes</font></i><font size=2> - The Company utilizes the liability method of accounting for income taxes as set forth in Statement of Financial Accounting Standards (SFAS) No. 109, </font><i><font size=2>Accounting for Income Taxes</font></i><font size=2>. SFAS No. 109 requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change
during the period in deferred tax assets and liabilities.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Foreign Currency Translation (Accumulated Other Comprehensive Loss) -</font></i><font size=2> The functional currency of each international corporate joint venture is the applicable local currency. The translation of the applicable foreign currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average monthly exchange rate. Translation gains or losses are reported as an element of accumulated other comprehensive loss.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Revenue Recognition -</font></i><font size=2> In recognizing revenue, the Company applies the provisions of the Securities &amp; Exchange Commission Staff Accounting Bulletin 101, </font><i><font size=2>Revenue Recognition. </font></i><font size=2>The Company recognizes revenue from the sale of its products when persuasive evidence of an arrangement exists, the product has been delivered, the fee is fixed and determinable and collection of the resulting receivable is reasonably assured. A portion of the gross profit on products shipped to the Company&#146;s corporate joint ventures is deferred until such products are sold by the corporate joint ventures.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Shipping and Handling</font></i><font size=2> - The Company records all amounts billed to customers in a sales transaction related to shipping and handling as sales. The Company records costs related to shipping and handling in cost of goods sold. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Use of Estimates</font></i><font size=2> - The preparation of the 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>RESULTS OF OPERATIONS</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>General</font></i><font size=2> - The Company conducts all foreign transactions based on the U.S. dollar, except for its investments in various foreign corporate joint ventures. The exchange rate differential relating to investments in foreign corporate joint ventures is accounted for under the requirements of SFAS No.&nbsp;52.</font></p>
<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 8</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font SIZE=2>NORTH AMERICAN OPERATIONS</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Sales </font></i><font size=2>- Sales increased by $437,031 or 27.9% during the second quarter of 2003 from those of the second quarter of 2002. Net sales increased by $375,864 or 10.4% during the six months ended February&nbsp;28, 2003 compared to the six months ended February 28, 2002. These changes in sales are due to an increase in demand for materials science based industrial packaging products. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Cost of Sales</font></i><font size=2> - Cost of goods sold as a percentage of net sales was 47.9% and 51.1% for the second quarter of 2003 and 2002, respectively. The cost of goods sold percentage of net sales was 47.1% and 47.7% for the six months ended February&nbsp;28, 2003 and February&nbsp;28, 2002, respectively. Variations are due primarily to the mix of product sales and changes in the price of resin.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Operating Expenses</font></i><font size=2> - As a percentage of net sales, total operating expenses were 58.4% in the second quarter of fiscal 2003 and 67.4% in the second quarter of fiscal 2002. Operating expenses were 57.9% and 54.8% of net sales for the six months ended February&nbsp;28, 2003 and for the six months ended February&nbsp;28, 2002.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Operating expense classification percentages of net sales were as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=3 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Three Months Ended</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan=3 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Six Months Ended</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=3 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td colspan=3 valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=64 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=63 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2003</font></b></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>February 28,</font></b><br> <b><font size=1>2002</font></b></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=64 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=63 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Selling expense</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>%</font></p> </td>
<td width=64 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>25</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>%</font></p> </td>
<td width=63 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=2>%</font></p> </td>
<td width=67 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=2>%</font></p> </td> </tr> <tr>
<td valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>General and administrative</font></p> </td>
<td width=13 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>26</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=64 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>31</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=63 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>25</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>26</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Research, engineering, and technical support</font></p> </td>
<td width=13 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=64 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=63 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=67 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10</font></p> </td>
<td width=14 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Selling Expenses. </font></i><font size=2>The Company&#146;s selling expenses increased by $65,608 or 17% to $451,537 during the second quarter of fiscal 2003 as compared to $385,929 during the same period in fiscal 2002. The increase in selling expenses during the second quarter of fiscal 2003 was primarily related to the hiring of additional sales people and associated commission and travel related expenses. As a percentage of sales, selling expense decreased to 22.6% in the second quarter of fiscal 2003 from 24.7% in the second quarter of fiscal 2002. Selling expenses increased by $274,073 or 42.2% to $923,028 during the six months ended February&nbsp;28, 2003 compared to the six months ended February 28, 2002 due to the same reasons. During the six months ended February 28, 2003 selling expense increased to 23.2% of sales from 18.0% during the six months ended February 28, 2002. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>General and Administrative Expenses. </font></i><font size=2>The Company&#146;s general and administrative expenses increased by $38,893 or 8.0% to $524,010 during the second quarter of fiscal 2003 as compared to $485,117 during the same period in fiscal 2002. The increase is attributable to increases in legal and court costs and accrued management bonus offset by decreases in consulting expenses and real estate taxes. As a percentage of sales, general and administrative expenses decreased to 26.2% in the second quarter of fiscal 2003 from 31.0% in the second quarter of fiscal 2002. General and administrative expenses increased by $24,582 or 2.6% to $976,600 during the six months ended February&nbsp;28, 2003 compared to the six months ended February 28, 2002. The increase is attributed to there being no expenses relating to NIC, the wholly owned subsidiary that ceased operations in fiscal year 2002. Additionally, there
were offsetting increases in legal fees, education expense and Board of Directors&#146; expenses. During the six months ended February 28, 2003 general and administrative expenses decreased to 24.5% of sales from 26.4% during the six months ended February 28, 2002. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Research, Engineering, and Technical Support Expenses. </font></i><font size=2>The Company&#146;s research, engineering, and technical support expenses increased by $10,276 or 5.6% to $193,820 during the second quarter of fiscal 2003 as compared to $183,544 during the same period in fiscal 2002. The increase in research, engineering, and technical support expenses during the second quarter of fiscal 2003 was primarily related to salary expense for hiring additional technical support personnel and an increase in lab supplies expense offset by decreases in technical consulting expense. As a percentage of sales, research, engineering, and technical support expenses decreased to 9.7% in the second quarter of fiscal 2003 from 11.7% in the second quarter of fiscal 2002. Research, engineering, and technical support expenses increased by $30,890 or 8.3% to $404,530 during the six months ended February&nbsp;28, 2003 compared to the
six months ended February 28, 2002 due to the same reason. During the six months ended February 28, 2003 research, engineering, and technical support expenses decreased to 10.2% of sales from 10.4% during the six months ended February 28, 2002. </font></p>
<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 9</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font SIZE=2>CORPORATE JOINT VENTURES AND EUROPEAN HOLDING COMPANY </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Corporate Joint Ventures and European Holding Company </font></i><font size=2>- Net earnings from corporate joint ventures and European holding company were $522,891 and $822,267 for the three and six months ended February&nbsp;28, 2003, respectively, compared to $214,819 and $667,122 for the three and the six months ended February&nbsp;28, 2002. This increase is due to significant increases in equity in income and fees for technical support and other services, which more than offset the increase in expenses incurred in support of corporate joint ventures.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font SIZE=2>INCOME TAX</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><font size=2>Income Taxes</font></i><font size=2> - Income tax expense (benefit) for the three and six months ended February 28, 2003 and 2002 was calculated based on management&#146;s estimate of the Company&#146;s annual effective income tax rate.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The Company&#146;s annual effective income tax rate for fiscal&nbsp;2003 is lower than the statutory rate primarily due to the Company&#146;s equity in income of corporate joint ventures being recognized based on after-tax earnings of these entities. To the extent joint ventures&#146; undistributed earnings are distributed to the Company, it is not expected to result in any material additional income tax liability after the application of foreign tax credits.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font SIZE=2>LIQUIDITY AND CAPITAL RESOURCES</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>At February 28, 2003, the Company&#146;s working capital was $4,933,982, including $127,538 in cash and cash equivalents and $2,391,456 in investments available for sale, compared to a working capital of $6,276,934, including $230,274 in cash and cash equivalents and $4,008,417 in investments available for sale at August 31, 2002.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Net cash provided from operations for the past six months has been sufficient to meet liquidity requirements, capital expenditures, research and development cost, and expansion of operations of the Company&#146;s corporate joint ventures. Cash flows (used in) provided by operations for the six months ended February 28, 2003 and 2002 were ($1,116,021) and $120,991, respectively. The net cash used in operations for the six months ended February 28, 2003 resulted principally from cash provided from net income and dividends received from corporate joint ventures being more than offset by the noncash equity income of industrial chemical joint ventures, and uses of cash for increases in operating assets and reductions of operating liabilities. During the six months, the Company made a $445,469 deposit relating to a legal case involving potential trademark infringement against a competitor in Europe. The Company expects that the
amount will be fully recoverable at the conclusion of the prosecution of the competitor. The net cash provided by operations for the six months ended February 28, 2002 resulted principally from net income, receivables, dividends, offset by equity income of industrial chemical corporate joint ventures and increases in prepaid expenses and other. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Net cash provided by investing activities for the six months ended February 28, 2003 was $1,359,975, which resulted from the sales of investments and a partial return of the Company&#146;s original investment in European holding company partially offset by investments in corporate joint ventures, and additions to property and equipment and industrial patents. Net cash used in investing activities for the six months ended February 28, 2002 was $104,607, which resulted from additions to property and equipment and industrial patents partially offset by a partial return of the Company&#146;s original investment in European holding company. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Net cash used in financing activities for the six months ended February 28, 2003 was $346,690, which resulted from the repurchase of common stock and payment of dividends. Net cash used in financing activities for the six months ended February 28, 2002 was $102,097, which resulted from the repurchase of common stock.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The Company expects to meet future liquidity requirements by utilizing its existing cash and cash equivalents and investments available for sale combined with cash flows from future operations and distributions of earnings and technical assistance fees from the corporate joint venture investments.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The Company has no long-term debt and no material capital lease commitments at February 28, 2003; however, the Company&#146;s wholly owned subsidiary has entered into a 15-year lease agreement for 16,826 square feet of office, manufacturing, laboratory, and warehouse space requiring monthly payments of $16,434, which can be adjusted annually according to the annual consumer price index through November 2014.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The Company has no postretirement benefit plan and does not anticipate establishing any postretirement benefit program.</font></p>
<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 10</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font size=2>Recently Issued Accounting Pronouncements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The Company accounts for its stock option plans using the intrinsic value method and has adopted the &#147;disclosure only&#148; provision of SFAS No. 123, as amended in 2002 by SFAS No. 148, Accounting for Stock-Based Compensation - Transition and Disclosure. No compensation cost has been recognized for the stock options granted under the various stock incentive plans. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>In November 2002, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 45, Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others (FIN 45). FIN 45 clarifies the requirements for a guarantor&#146;s accounting for and disclosure of certain issued and outstanding guarantees. The initial recognition and initial measurement provisions of FIN 45 are applicable to guarantees issued or modified after December 31, 2002. Adoption of this statement did not have a material effect on the Company&#146;s financial statements.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font size=2>Disclosure of the Control Environment</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Within the 90-day period prior to the filing date of this report, management performed an evaluation, of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Exchange Act Rules 13a-14(c) and 15d-14(c). We performed this evaluation under the supervision of, and with participation from, our Chairman of the Board &amp; Co-Chief Executive Officer, President &amp; Co-Chief Executive Officer, and Chief Financial Officer. Based upon that evaluation we, as well as our Chairman of the Board &amp; Co-Chief Executive Officer, President &amp; Co-Chief Executive Officer, and Chief Financial Officer, concluded that our disclosure controls and procedures were effective. There have been no significant changes in our internal controls or in other factors that could significantly affect internal controls subsequent to the date we carried out this evaluation, and therefore we believe that our
disclosure controls and procedures remain effective. We intend to periodically evaluate our disclosure controls and procedures as required by the Exchange Act Rules.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>PART II - OTHER INFORMATION</font></b></p>
<p style=' margin-bottom:0pt; margin-left:0.75in; text-indent:-0.75in; margin-top:12pt;'><font SIZE=2>ITEM 1 - LEGAL PROCEEDINGS</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>None</font></p>
<p style=' margin-bottom:0pt; margin-left:0.75in; text-indent:-0.75in; margin-top:12pt;'><font SIZE=2>ITEM 2 - CHANGES IN SECURITIES</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>None</font></p>
<p style=' margin-bottom:0pt; margin-left:0.75in; text-indent:-0.75in; margin-top:12pt;'><font SIZE=2>ITEM 3 - DEFAULTS UPON SENIOR SECURITIES</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>None</font></p>
<p style=' margin-bottom:0pt; margin-left:0.75in; text-indent:-0.75in; margin-top:12pt;'><font SIZE=2>ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The Annual Meeting of Stockholders of the Company (Annual Meeting) was held on January 31, 2003. The election of directors was voted on and approved by the Company&#146;s stockholders at the Annual Meeting. There were 3,635,751 shares of common stock entitled to vote at the meeting and a total of 3,255,731 shares or 89.55% were represented at the meeting. </font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 11</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The tabulation of votes is set forth as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table border=0 cellspacing=0 cellpadding=0 style='margin-left:25.9pt; border-collapse:collapse'> <tr>
<td width=377 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=19 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>For</font></b></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Withheld</font></b></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=19 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=15 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width=19 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Ursula-Kiel-Dixon</font></p> </td>
<td width=19 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,243,165</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12,575</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Dr.&nbsp;Aradhna Krishna</font></p> </td>
<td width=19 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,243,165</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12,575</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Dr.&nbsp;Donald A. Kubik</font></p> </td>
<td width=19 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,250,644</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,087</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Richard G. Lareau</font></p> </td>
<td width=19 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,236,906</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18,825</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Philip M. Lynch</font></p> </td>
<td width=19 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,243,794</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,937</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Haruhiko Rikuta</font></p> </td>
<td width=19 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,250,744</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,987</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Mark J. Stone</font></p> </td>
<td width=19 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,250,344</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,387</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Stephan C. Taylor</font></p> </td>
<td width=19 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,243,156</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12,575</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Dr.&nbsp;Milan R. Vukcevich</font></p> </td>
<td width=19 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='background:#EAF9E8;padding: 0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,250,744</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,987</font></p> </td>
<td width=15 valign=bottom style='background:#EAF9E8; padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=377 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Dr.&nbsp;Mehmet A. Gencer</font></p> </td>
<td width=19 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=57 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,775,244</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td>
<td width=53 valign=bottom style='padding:0in 0in 0in 0in'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>480,487</font></p> </td>
<td width=15 valign=bottom style='padding:0in 0in 0in 0in'> <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-left:0.75in; text-indent:-0.75in; margin-top:12pt;'><font SIZE=2>ITEM 5 - OTHER INFORMATION</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>None</font></p>
<p style=' margin-bottom:0pt; margin-left:0.75in; text-indent:-0.75in; margin-top:12pt;'><font SIZE=2>ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><b><font size=2>(a)</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Exhibits</font></b></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>None; however the written statements of our applicable officers, as required pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, accompanied the filing of this report as correspondence to the Securities and Exchange Commission.</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><b><font size=2>(b)</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Reports on Form 8-K</font></b></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:8pt;'><font size=2>The Company did not file any Current Reports on Form 8-K during the six months ended February 28, 2003.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 12</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font SIZE=2>SIGNATURE PAGE</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 style='margin-left:.4pt;border-collapse: collapse'> <tr>
<td width=215 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td colspan=3 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font SIZE=2>NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION</font></p> </td> </tr> <tr>
<td width=215 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=95 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=31 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=264 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=215 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Date:&nbsp;&nbsp;April 10, 2003</font></p> </td>
<td width=95 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=31 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width=264 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2><img src="image002.gif"><br> </font></p> </td> </tr> <tr>
<td width=215 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=95 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=31 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> <tr>
<td width=215 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=95 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=31 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=264 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Matthew C. Wolsfeld, CPA</font><br> <i><font size=2>Chief Financial Officer</font></i></p> </td> </tr> <tr>
<td width=215 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td colspan=3 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=215 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td colspan=3 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>(Mr.&nbsp;Wolsfeld is the Principal Financial and Accounting Officer and has</font><br> <font size=2>been duly authorized to sign on behalf of the registrant.) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt;text-align:right; margin-top:8pt;'>&nbsp;</p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 13</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO SECTION 302(A) OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>I, Philip M. Lynch, certify that:</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>I have reviewed this quarterly report on Form 10-QSB of Northern Technologies International Corporation;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>3.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>4. </font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the &#147;Evaluation Date&#148;); and</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>5.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or persons performing the equivalent function):</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant&#146;s ability to record, process, summarize and report financial data and have identified for the registrant&#146;s auditors any material weaknesses in internal controls; and</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls; and</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>6.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 style='margin-left:.4pt;border-collapse: collapse'> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: April 10, 2003</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2><img src="image003.gif"><br> </font></p> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Philip M. Lynch</font><br> <i><font size=2>Chairman of the Board of Directors and</font></i><br> <i><font size=2>Co-Chief Executive Officer</font></i></p> </td> </tr> </table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 14</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO SECTION 302(A) OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>I, G. Patrick Lynch, certify that:</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>I have reviewed this quarterly report on Form 10-QSB of Northern Technologies International Corporation;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>3.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>4.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the &#147;Evaluation Date&#148;); and</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>5.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or persons performing the equivalent function):</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant&#146;s ability to record, process, summarize and report financial data and have identified for the registrant&#146;s auditors any material weaknesses in internal controls; and</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls; and</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>6.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 style='margin-left:.4pt;border-collapse: collapse'> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: April 10, 2003</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2><img src="image005.gif"><br> </font></p> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>G. Patrick Lynch</font><br> <i><font size=2>President and Co-Chief Executive Officer</font></i></p> </td> </tr> </table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 15</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO SECTION 302(A) OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>I, Matthew C. Wolsfeld, certify that:</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>I have reviewed this quarterly report on Form 10-QSB of Northern Technologies International Corporation;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>3.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>4.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the &#147;Evaluation Date&#148;); and</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>5.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or persons performing the equivalent function):</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant&#146;s ability to record, process, summarize and report financial data and have identified for the registrant&#146;s auditors any material weaknesses in internal controls; and</font></p>
<p style=' margin-bottom:0pt; margin-left:0.36in; margin-top:6pt;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls; and</font></p>
<p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>6.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The registrant&#146;s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table align=center border=0 cellspacing=0 cellpadding=0 style='margin-left:.4pt;border-collapse: collapse'> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: April 10, 2003</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2><img src="image006.gif"><br> </font></p> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Matthew C. Wolsfeld, CPA</font><br> <i><font size=2>Chief Financial Officer</font></i></p> </td> </tr> </table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 16</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>In connection with the Quarterly Report of Northern Technologies International Corporation (the &#147;Company&#148;) on Form 10-QSB for the period ending February 28, 2003 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Philip M. Lynch, Chairman of the Board and Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:</font></p>
<p style=' margin-bottom:0pt; margin-left:0.72in; text-indent:-0.36in; margin-top:6pt;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </font></p>
<p style=' margin-bottom:0pt; margin-left:0.72in; text-indent:-0.36in; margin-top:6pt;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table align=center border=0 cellspacing=0 cellpadding=0 style='margin-left:.4pt;border-collapse: collapse'> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2><img src="image003.gif"><br> </font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><i><font size=2>Chairman of the Board of Directors  and Co-Chief Executive Officer (principal executive officer)</font></i><i></i></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Philip M. Lynch</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Lino Lakes, Minnesota</font><br><font size=2>April 10, 2003</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 17</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>In connection with the Quarterly Report of Northern Technologies International Corporation (the &#147;Company&#148;) on Form 10-QSB for the period ending February 28, 2003 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, G. Patrick Lynch, President and Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:</font></p>
<p style=' margin-bottom:0pt; margin-left:0.72in; text-indent:-0.36in; margin-top:6pt;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </font></p>
<p style=' margin-bottom:0pt; margin-left:0.72in; text-indent:-0.36in; margin-top:6pt;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table align=center border=0 cellspacing=0 cellpadding=0 style='margin-left:.4pt;border-collapse: collapse'> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2><img src="image007.gif"><br> </font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><i><font size=2>President and Co-Chief Executive Officer (principal executive officer)</font></i><i></i></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>G. Patrick Lynch</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Lino Lakes, Minnesota</font><br><font size=2>April 10, 2003</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 18</font></p><br><HR noshade align=center width="100%" size=2><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>In connection with the Quarterly Report of Northern Technologies International Corporation (the &#147;Company&#148;) on Form 10-QSB for the period ending February 28, 2003 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Matthew C. Wolsfeld, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:</font></p>
<p style=' margin-bottom:0pt; margin-left:0.72in; text-indent:-0.36in; margin-top:6pt;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </font></p>
<p style=' margin-bottom:0pt; margin-left:0.72in; text-indent:-0.36in; margin-top:6pt;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table align=center border=0 cellspacing=0 cellpadding=0 style='margin-left:.4pt;border-collapse: collapse'> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2><img src="image008.gif"><br> </font></p> </td>
<td width=14 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=bottom style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><i><font size=2>Chief Financial Officer (principal financial officer and principal accounting officer)</font></i><i></i></p> </td> </tr> <tr>
<td valign=top style='padding:0in 0in 0in 0in'> <hr noshade width="100%" color="black" size=1> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p><font size=1>&nbsp;</font></p> </td> </tr> <tr>
<td width=306 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Matthew C. Wolsfeld, CPA</font></p> </td>
<td width=14 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=32 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width=273 valign=top style='padding:0in 0in 0in 0in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Lino Lakes, Minnesota</font><br><font size=2>April 10, 2003</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<br><p style='margin-bottom:0pt;text-align:center'><font size=2> 19</font></p><br><HR noshade align=center width="100%" size=2><PAGE>


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