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<SEC-DOCUMENT>0001116502-09-000902.txt : 20090602
<SEC-HEADER>0001116502-09-000902.hdr.sgml : 20090602
<ACCEPTANCE-DATETIME>20090602163100
ACCESSION NUMBER:		0001116502-09-000902
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20090602
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090602
DATE AS OF CHANGE:		20090602

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COFFEE HOLDING CO INC
		CENTRAL INDEX KEY:			0001007019
		STANDARD INDUSTRIAL CLASSIFICATION:	BEVERAGES [2080]
		IRS NUMBER:				113860760
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32491
		FILM NUMBER:		09868654

	BUSINESS ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232
		BUSINESS PHONE:		7188320800

	MAIL ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRANSPACIFIC INTERNATIONAL GROUP CORP
		DATE OF NAME CHANGE:	19960201
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>coffee8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:4px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:1.333px solid #000000" align=right>&nbsp;</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>Washington, D.C. 20549</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:18pt; margin-top:10.667px; margin-bottom:0px; font-size:16pt" align=center><B>FORM 8-K</B></P>
<P style="line-height:12.5pt; margin-top:0px; margin-bottom:17.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin-top:0px; margin-bottom:6.667px" align=center><B>CURRENT REPORT</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>Pursuant to Section 13 or 15(d) of<BR>
the Securities Exchange Act of 1934</B></P>
<P style="margin:0px" align=center>Date of Report (Date of earliest event reported): &nbsp;<B>June&nbsp;2, 2009</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:0px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:20pt; margin-top:16px; margin-bottom:0px; font-size:18pt" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>(Exact name of registrant as specified in its charter)</I></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:17.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=208></TD><TD width=208.067></TD><TD width=207.933></TD></TR>
<TR><TD valign=top width=208><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>Nevada</B></P>
</TD><TD valign=top width=208.067><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>001-32491</B></P>
</TD><TD valign=top width=207.933><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>11-2238111</B></P>
</TD></TR>
<TR><TD valign=top width=208><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; padding-left:13.467px; font-size:8pt" align=center><I>(State or other jurisdiction<BR>
of incorporation)</I></P>
</TD><TD valign=top width=208.067><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(Commission<BR>
File Number)</I></P>
</TD><TD valign=top width=207.933><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(IRS Employer<BR>
Identification No.)</I></P>
</TD></TR>
</TABLE>
<P style="margin-top:13.333px; margin-bottom:0px" align=center><B>3475 Victory Boulevard, Staten Island, NY 10314</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:10.667px; font-size:8pt" align=center><I>(Address of principal executive offices) (Zip Code)</I></P>
<P style="margin:0px" align=center><B>(718) 832-0800</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:10.667px; font-size:8pt" align=center><I>Registrant&#146;s telephone number, including area code: </I></P>
<P style="margin-top:6.667px; margin-bottom:0px" align=center><B>Not Applicable</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:16px; font-size:8pt" align=center><I>(Former name or former address, if changed since last report.)</I></P>
<P style="margin-top:6.667px; margin-bottom:6.667px">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:32px; text-indent:-32px; font-family:Wingdings">&#168;</P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:32px">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:32px; text-indent:-32px; font-family:Wingdings">&#168;</P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:32px">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:32px; text-indent:-32px; font-family:Wingdings">&#168;</P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:32px">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:32px; text-indent:-32px; font-family:Wingdings">&#168;</P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:32px">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:1.333px solid #000000">&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:4px solid #000000">&nbsp;</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px"><B>Item 2.02</B></P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:72px"><B>Results of Operations and Financial Condition.</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>On June&nbsp;2, 2009, Coffee Holding Co., Inc. issued a press release disclosing certain information regarding its results of operations for the three and six months ended April&nbsp;30, 2009. A copy of the press release is attached as Exhibit&nbsp;99.1.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px" align=justify><B>Item 9.01</B></P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:72px" align=justify><B>Financial Statements and Exhibits.</B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:80px; text-indent:-32px" align=justify>(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:80px" align=justify>The following exhibit is furnished with this report:</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=86.6></TD><TD width=27.733></TD><TD width=509.667></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=86.6><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit&nbsp;No.</B></P>
</TD><TD valign=top width=27.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=509.667><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=86.6><P>&nbsp;</P></TD><TD valign=top width=27.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=509.667><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=86.6><P style="margin:0px; color:#0000FF" align=center><A HREF="coffee991.htm"><U>99.1</U></A><FONT style="color:#000000"></FONT></P>
</TD><TD valign=top width=27.733><P>&nbsp;</P></TD><TD valign=top width=509.667><P style="margin:0px">Coffee Holding Co., Inc. press release dated June&nbsp;2, 2009</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:8.867px" align=justify><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:20px" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0px; margin-bottom:20px; text-indent:48px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=326.933></TD><TD width=44.2></TD><TD width=252.867></TD></TR>
<TR><TD valign=bottom width=326.933><P style="margin:0px">Dated: June&nbsp;2, 2009&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=297.067 colspan=2><P style="margin:0px"><B>COFFEE HOLDING CO., INC.</B></P>
</TD></TR>
<TR><TD valign=bottom width=326.933><P>&nbsp;</P></TD><TD valign=bottom width=44.2><P>&nbsp;</P></TD><TD valign=bottom width=252.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=326.933><P>&nbsp;</P></TD><TD valign=bottom width=44.2><P>&nbsp;</P></TD><TD valign=bottom width=252.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=326.933><P>&nbsp;</P></TD><TD valign=bottom width=44.2><P style="margin:0px">By:</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=252.867><P style="line-height:normal; margin:0px">/s/ A<FONT style="font-size:6pt">NDREW</FONT> G<FONT style="font-size:6pt">ORDON</FONT></P>
</TD></TR>
<TR><TD valign=bottom width=326.933><P>&nbsp;</P></TD><TD valign=bottom width=44.2><P style="margin:0px">Name: </P>
</TD><TD valign=bottom width=252.867><P style="margin:0px">Andrew Gordon </P>
</TD></TR>
<TR><TD valign=bottom width=326.933><P>&nbsp;</P></TD><TD valign=bottom width=44.2><P style="margin:0px">Title:</P>
</TD><TD valign=bottom width=252.867><P style="margin:0px">President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px; page-break-before:always" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:20px" align=center><B>EXHIBIT INDEX</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=113.133></TD><TD width=44.2></TD><TD width=481.067></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=113.133><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit&nbsp;No.</B></P>
</TD><TD valign=bottom width=44.2><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=481.067><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=bottom width=113.133><P>&nbsp;</P></TD><TD valign=bottom width=44.2><P>&nbsp;</P></TD><TD valign=bottom width=481.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=113.133><P style="margin:0px; color:#0000FF" align=center><A HREF="coffee991.htm"><U>99.1</U></A><FONT style="color:#000000"></FONT></P>
</TD><TD valign=bottom width=44.2><P style="margin:0px" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=481.067><P style="margin:0px" align=justify>Coffee Holding Co., Inc. press release dated March&nbsp;10, 2009</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>coffee991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<A NAME="_Ref3977756"></A><P style="line-height:13pt; margin:0px; font-size:11pt" align=right><B>EXHIBIT 99.1</B></P>
<P style="margin:0px" align=right><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt"><B>FOR IMMEDIATE RELEASE</B></P>
<P style="line-height:13pt; margin:0px; font-size:11pt">Contact: &nbsp;Andrew Gordon, President &amp; CEO</P>
<P style="line-height:13pt; margin:0px; font-size:11pt">Telephone: &nbsp;(718) 832-0800</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>Coffee Holding Co., Inc. Reports Results for Three and Six Months Ended April 30, 2009</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt">BROOKLYN, New York &#150; June 1, 2009. &nbsp;Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the three and six months ended April 30, 2009. &nbsp;In this release, the Company:</P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:80px; text-indent:-32px; font-family:Symbol; font-size:11pt">&#183;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:80px; font-size:11pt">Reports net income of $792,451, or $0.15 per share (basic and diluted) for the six months ended April 30, 2009 and $400,650, or $0.07 per shares (basic and diluted) for the three months ended April 30, 2009;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:80px; text-indent:-32px; font-family:Symbol; font-size:11pt">&#183;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:80px; font-size:11pt">Reports net sales of $36,730,739 for the six months ended April 30, 2009 and $17,872,065 for the three months ended April 30, 2009; and</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:80px; text-indent:-32px; font-family:Symbol; font-size:11pt">&#183;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:80px; font-size:11pt">Reports sales growth of 10.9% for the six months ended April 30, 2009 compared to the six months ended April 30, 2008.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; font-size:11pt" align=justify>We had a net income of $400,650, or $0.07 per share (basic and diluted), for the three months ended April 30, 2009 compared to a net loss of $2,044,178, or $0.37 per share (basic and diluted), for the three months ended April 30, 2008. &nbsp;We had a net income of $792,451, or $0.15 per share (basic and diluted), for the six months ended April 30, 2009 compared to a net loss of $1,861,913, or $0.34 per share (basic and diluted), for the six months ended April 30, 2008. &nbsp;The increase in net income for the quarter primarily reflects decreased cost of sales. &nbsp;The increase in net income for the six month period reflects increased net sales, decreased cost of sales and decreased operating expenses.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; font-size:11pt" align=justify>Net sales totaled $17,872,065 for the three months ended April 30, 2009, a decrease of $297,376, or 1.6%, from $18,169,441 for the three months ended April 30, 2008. &nbsp;Net sales totaled $36,730,739 for the six months ended April 30, 2009, an increase of $3,569,757, or 10.9%, from $33,131,982 for the six months ended April 30, 2008. &nbsp;The increase in net sales for the six month period reflects increased amounts of green coffee, branded coffee and private label coffee sold, partially offset by lower sales prices compared to the first six months of 2008. &nbsp;&nbsp;&nbsp;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; font-size:11pt" align=justify>Cost of sales for the three months ended April 30, 2009 was $15,667,758 or 87.7% of net sales, as compared to $19,843,502 or 109% of net sales for the three months ended April 30, 2008. &nbsp;Cost of sales for the six months ended April 30, 2009 was $32,411,343 or 88.2% of net sales, as compared to $32,925,925 or 99.4% of net sales for the six months ended April 30, 2008. The decrease in cost of sales primarily reflects the decreased cost of green coffee in the three month period and an increase in gains on options and futures contracts over the six and three month periods. &nbsp;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:14.667px; font-size:11pt" align=justify>Total operating expenses decreased by $192,896, or 11.5%, to $1,485,859 for the three months ended April 30, 2009 from $1,678,755 for the three months ended April 30, 2008. &nbsp;&nbsp;Total operating expenses decreased by $326,521, or 10.1%, to $2,892,535 for the six months ended April 30, 2009 from $3,219,056 for the six months ended April 30, 2008. The decrease in operating expenses was due to decreases in selling and administrative expense due to reductions in freight costs, professional fees and insurance costs. &nbsp;We closed our manufacturing operations at our Brooklyn location in May of 2009. &nbsp;The majority of our processing has been moved to our Colorado facility with our Generations facility in Brecksville, Ohio becoming more involved with our everyday coffee purchasing. &nbsp;We have leased office and warehouse space located in Staten Island to house the corporate offices and serve as temporary <
/P>
<P style="margin-top:0px; margin-bottom:14.667px" align=justify><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>1</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:normal; margin-top:0px; margin-bottom:14.667px; font-size:11pt; page-break-before:always" align=justify>storage of our product. &nbsp;We plan to sell the property located in Brooklyn in the near future. &nbsp;The sale of our Brooklyn property will enhance our already strong cash position and liquidity.<FONT style="font-family:Courier New; font-size:10pt"> </FONT>We believe that these measures will reduce operating expenses, increase efficiencies and ultimately increase the profitability of our company. </P>
<P style="line-height:13pt; margin:0px; font-size:11pt">&#147;We believe that the problems from last year are now fully behind us and we&#146;ve now got the wind at our backs. &nbsp;The streamlining of our operations as well as the focus on margins as opposed to revenues during these uncertain times has begun to pay off as we have once again maintained our top line while gaining additional efficiencies which are clearly reflected in our operating results, said Andrew Gordon, President and Chief Executive Officer.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt">We remain focused on growing our businesses with our existing customers and look to improve upon and expand these relationships, using both the knowledge and experience for which our customers have depended on over the years. &nbsp;We believe that long term solid customer/vendor relationships will be integral to our success as the near term outlook for retailer sales and profitability remains uncertain.</P>
<P style="margin:0px; font-size:11pt">&nbsp;</P>
<P style="line-height:13pt; margin:0px; font-size:11pt">The macro-economic environment has begun to change both consumer buying behavior and consumption patterns in the world of coffee over the last six or so months.&nbsp; We realize consumers have altered their purchasing habits and we have responded by focusing on the areas (customers) where these changes in consumption will benefit our company through immediate growth and profitability.&nbsp; For example, we recently began supplying our coffee to two of the largest discount retailers in the U.S. who have seen their respective sales increase dramatically during the recent downturn in the U.S. economy.&nbsp; We expect our sales to these two retailers to continue to increase,&#148; Mr. Gordon added.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt"><I>About Coffee Holding</I></P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; text-indent:48px; font-size:11pt">Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. &nbsp;Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. &nbsp;The Company&#146;s private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; text-indent:48px; font-size:11pt">Any statements that are not historical facts contained in this release are &#147;forward-looking statements&#148; within the meaning of the Private Securities Litigation Reform Act of 1995. It is possible that the assumptions made by management for purposes of such statements may not materialize. &nbsp;Actual results may differ materially from those projected or implied in any forward-looking statements. &nbsp;Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company&#146;s Securities and Exchange Commission filings. &nbsp;The Company undertakes no obligation to update or revise any forward-
looking statement for events or circumstances after the date on which such statement is made.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>2</P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px; page-break-before:always"><BR></P>
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<P style="margin:0px" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>APRIL 30, 2009 AND OCTOBER 31, 2008</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=530.533></TD><TD width=18.467></TD><TD width=7.333></TD><TD width=66.533></TD><TD width=18.4></TD><TD width=7.333></TD><TD width=66.533></TD><TD width=4.867></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=73.867 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>April 30,<BR>
2009</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=73.867 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>October 31,<BR>
2008</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=73.867 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>(unaudited)</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=73.867 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(audited)</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px" align=center><B>- ASSETS -</B></P>
</TD><TD valign=bottom width=18.467><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>CURRENT ASSETS:</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Cash and cash equivalents</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>1,097,044</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>963,298</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Commodities held at broker</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>1,177,078</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>342,269</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Accounts receivable, net of allowance for doubtful accounts of $141,915 for 2009<BR>
and 2008, respectively</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>7,603,889</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>9,067,797</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Inventories</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>4,375,762</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>5,046,554</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Prepaid expenses and other current assets</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>427,252</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>284,900</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Prepaid and refundable income taxes</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>308,024</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>1,025,935</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Deferred income tax asset</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>398,000</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>923,877</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>TOTAL CURRENT ASSETS</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>15,387,049</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>17,654,630</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:8px; text-indent:-8px">Property and equipment, at cost, net of accumulated depreciation of $5,305,482 and<BR>
$5,020,573 for 2009 and 2008, respectively</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>2,626,670</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>2,804,053</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deposits and other assets</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>487,219</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>542,893</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>TOTAL ASSETS</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>18,500,938</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin:0px" align=right>21,001,576</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px" align=center><B>- LIABILITIES AND STOCKHOLDERS' EQUITY -</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>CURRENT LIABILITIES:</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Accounts payable and accrued expenses</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>4,445,933</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>9,120,124</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Line of credit borrowings</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>4,866,396</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>3,522,207</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>TOTAL CURRENT LIABILITIES</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>9,312,329</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>12,642,331</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deferred income tax liabilities</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>81,500</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>86,000</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deferred rent payable</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>84,513</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>69,959</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px">Deferred compensation payable</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>379,364</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>352,637</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>TOTAL LIABILITIES</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>9,857,706</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>13,150,927</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>8,884</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>3,226</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>COMMITMENTS AND CONTINGENCIES</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P>&nbsp;</P></TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px"><B>STOCKHOLDERS' EQUITY: </B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P>&nbsp;</P></TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Common stock, par value $.001 per share; 30,000,000 shares authorized, 5,529,830<BR>
shares issued for 2009 and 2008</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>5,530</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>5,530</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Additional paid-in capital</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>7,327,023</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>7,327,023</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Retained earnings</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right><B>1,597,056</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=66.533><P style="margin:0px" align=right>804,605</P>
</TD><TD valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Less: Treasury stock, 89,007 and 84,314 common shares, at cost for 2009 and 2008,<BR>
respectively</P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>(295,261</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>(289,735</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>TOTAL STOCKHOLDERS' EQUITY </B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>8,634,348</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=66.533><P style="margin:0px" align=right>7,847,423</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=530.533><P style="margin:0px; padding-left:64px; text-indent:-8px"><B>TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></P>
</TD><TD valign=bottom width=18.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin:0px" align=right><B>18,500,938</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=66.533><P style="margin:0px" align=right>21,001,576</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=4.867><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>3</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><BR></P>
<P style="margin:0px" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>(Unaudited)</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=342.2></TD><TD width=18.533></TD><TD width=7.467></TD><TD width=67.133></TD><TD width=18.6></TD><TD width=7.467></TD><TD width=67.133></TD><TD width=18.6></TD><TD width=7.467></TD><TD width=67.133></TD><TD width=18.6></TD><TD width=7.467></TD><TD width=67.133></TD><TD width=5.067></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=167.8 colspan=5><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Six Months Ended</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>April 30</B>,</P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=167.8 colspan=5><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Three Months Ended</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>April, 30</B></P>
</TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.6 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>2009</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.6 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>2008</P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.6 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>2009</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.6 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>2008</P>
</TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>NET SALES</B></P>
</TD><TD valign=bottom width=18.533><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=7.467><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>36,730,739</B></P>
</TD><TD valign=bottom width=18.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.467><P style="margin:0px">$</P>
</TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>33,131,982</P>
</TD><TD valign=bottom width=18.6><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=7.467><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>17,872,065</B></P>
</TD><TD valign=bottom width=18.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.467><P style="margin:0px">$</P>
</TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>18,169,441</P>
</TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>COST OF SALES</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>32,411,343</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>32,925,925</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>15,667,758</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>19,843,502</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>GROSS PROFIT (LOSS)</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>4,319,396</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>206,057</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>2,204,307</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(1,674,061</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>OPERATING EXPENSES:</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:32px; text-indent:-8px">Selling and administrative</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>2,592,836</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>2,919,356</P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>1,336,009</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>1,540,432</P>
</TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:32px; text-indent:-8px">Officers&#146; salaries</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>299,699</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>299,700</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>149,850</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>138,323</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>TOTALS</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>2,892,535</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>3,219,056</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>1,485,859</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>1,678,755</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>INCOME (LOSS) FROM OPERATIONS</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>1,426,861</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(3,012,999</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>718,448</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(3,352,816</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>OTHER INCOME (EXPENSE)</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:32px; text-indent:-8px">Interest income</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>6,115</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>34,328</P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>3,850</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>10,057</P>
</TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:32px; text-indent:-8px">Dividend income</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>9,331</P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>9,331</P>
</TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:32px; text-indent:-8px">Interest expense</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(101,364</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(61,432</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(60,571</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(32,426</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(95,249</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(17,773</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(56,721</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(13,038</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:8px; text-indent:-8px"><B>INCOME (LOSS) BEFORE BENEFIT<BR>
FROM (PROVISION) FOR INCOME TAX<BR>
EXPENSE AND MINORITY INTEREST IN<BR>
SUBSIDIARY</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>1,331,612</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>(3,030,772</P>
</TD><TD valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>661,727</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>(3,365,854</P>
</TD><TD valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:32px; text-indent:-8px">Benefit (provision) for income tax expense</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(533,503</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>1,169,949</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(256,867</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>1,312,000</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>INCOME (LOSS) BEFORE MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>798,109</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>(1,860,823</P>
</TD><TD valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>404,860</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>(2,053,854</P>
</TD><TD valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:32px; text-indent:-8px">Minority interest in earnings (loss) of subsidiary</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(5,658</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(1,090</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>(4,210</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>9,676</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>NET INCOME (LOSS)</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>792,451</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>(1,861,913</P>
</TD><TD valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>400,650</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>(2,044,178</P>
</TD><TD valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px">Retained earnings-beginning</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>804,605</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>4,946,467</P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right><B>1,196,406</B></P>
</TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P style="margin:0px" align=right>3,584,164</P>
</TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px">Dividend declared</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(1,544,568</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=67.133><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px"><B>RETAINED EARNINGS - ENDING</B></P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>1,597,056</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>1,539,986</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>1,597,056</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>1,539,986</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px">Basic &nbsp;and diluted earnings (loss) per share</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>.15</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(.34</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>.07</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>(.37</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=342.2><P>&nbsp;</P></TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px">Weighted average common shares outstanding:</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=18.6><P>&nbsp;</P></TD><TD valign=bottom width=7.467><P>&nbsp;</P></TD><TD valign=bottom width=67.133><P>&nbsp;</P></TD><TD valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:40px; text-indent:-8px">Basic</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>5,442,112</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>5,497,254</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>5,442,112</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>5,497,254</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=342.2><P style="margin:0px; padding-left:40px; text-indent:-8px">Diluted</P>
</TD><TD valign=bottom width=18.533><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>5,442,112</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>5,497,254</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right><B>5,442,112</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=67.133><P style="margin:0px" align=right>5,497,254</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.067><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>4</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><BR></P>
<P style="margin:0px" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>
<P style="margin:0px" align=center><B>SIX MONTHS ENDED APRIL 30, 2009</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>(Unaudited)</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=531.533></TD><TD width=19.267></TD><TD width=7.667></TD><TD width=74.333></TD><TD width=19.2></TD><TD width=7.667></TD><TD width=74.333></TD><TD width=5.2></TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=82 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>2009</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=82 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>2008</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px"><B>OPERATING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Net income (loss) </P>
</TD><TD valign=bottom width=19.267><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=7.667><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>792,451</B></P>
</TD><TD valign=bottom width=19.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.667><P style="margin:0px">$</P>
</TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>(1,861,913</P>
</TD><TD valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Adjustments to reconcile net income (loss) to net cash (used in) provided by<BR>
operating activities:</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Depreciation and amortization</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>284,684</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>262,086</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Deferred rent</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>14,554</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>(2,294</P>
</TD><TD valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Deferred income taxes</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>521,377</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>(1,170,000</P>
</TD><TD valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Minority interest</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>5,658</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>1,090</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Changes in operating assets and liabilities:</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Commodities held at broker</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>(834,809</B></P>
</TD><TD valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>2,636,312</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Accounts receivable</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>1,463,908</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>1,478,680</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Inventories</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>670,792</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>634</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Prepaid expenses and other current assets</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>(142,352</B></P>
</TD><TD valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>155,500</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Prepaid and refundable income taxes</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>717,911</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>(31,056</P>
</TD><TD valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Accounts payable and accrued expenses</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>(4,674,190</B></P>
</TD><TD valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>(463,229</P>
</TD><TD valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Deposits and other assets</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>82,400</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>20,940</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:48px; text-indent:-8px">Income taxes payable</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right>(9,161</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:72px; text-indent:-8px"><B>Net cash (used in) provided by operating activities</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>(1,097,616</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right>1,017,589</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px"><B>INVESTING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Purchases of property and equipment</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>(107,301</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right>(267,091</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:72px; text-indent:-8px"><B>Net cash used in investing activities</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>(107,301</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right>(267,091</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px"><B>FINANCING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Advances under bank line of credit</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>39,733,280</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>30,855,020</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Principal payments under bank line of credit</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>(38,389,091</B></P>
</TD><TD valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>(29,195,449</P>
</TD><TD valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Payment of dividend</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>(1,544,568</P>
</TD><TD valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Purchase of treasury stock</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>(5,526</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.2><P style="margin:0px"><B>)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right>(138,737</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:72px; text-indent:-8px"><B>Net cash provided by (used in) financing activities</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>1,338,663</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right>(23,734</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.2><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px"><B>NET INCREASE IN CASH AND CASH EQUIVALENTS</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right><B>133,746</B></P>
</TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P style="margin:0px" align=right>726,764</P>
</TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Cash and cash equivalents, beginning of year</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>963,298</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=74.333><P style="margin:0px" align=right>890,649</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px"><B>CASH AND CASH EQUIVALENTS, END OF PERIOD</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>1,097,044</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right>1,617,413</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px"><B>SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Interest paid</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>75,364</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right>58,557</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">Income taxes paid</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right>12,255</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P>&nbsp;</P></TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px"><B>SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=19.2><P>&nbsp;</P></TD><TD valign=bottom width=7.667><P>&nbsp;</P></TD><TD valign=bottom width=74.333><P>&nbsp;</P></TD><TD valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=531.533><P style="margin:0px; padding-left:32px; text-indent:-8px">The Company utilized its deposit for the purchase of machinery and equipment</P>
</TD><TD valign=bottom width=19.267><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=19.2><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.667><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=74.333><P style="margin:0px" align=right>296,960</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=5.2><P>&nbsp;</P></TD></TR>
</TABLE>
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<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>5</P>
<P style="margin:0px"><BR></P>
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