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<SEC-DOCUMENT>0001169232-05-002597.txt : 20050511
<SEC-HEADER>0001169232-05-002597.hdr.sgml : 20050511
<ACCEPTANCE-DATETIME>20050511124931
ACCESSION NUMBER:		0001169232-05-002597
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050509
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050511
DATE AS OF CHANGE:		20050511

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CTI INDUSTRIES CORP
		CENTRAL INDEX KEY:			0001042187
		STANDARD INDUSTRIAL CLASSIFICATION:	FABRICATED RUBBER PRODUCTS, NEC [3060]
		IRS NUMBER:				362848943
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23115
		FILM NUMBER:		05819687

	BUSINESS ADDRESS:	
		STREET 1:		22160 N PEPPER RD
		CITY:			BARRINGTON
		STATE:			IL
		ZIP:			60010

	MAIL ADDRESS:	
		STREET 1:		22160 N PEPPER RD
		CITY:			BARRINGTON
		STATE:			IL
		ZIP:			60010
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d63790_8-k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>UNITED STATES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Washington, D.C. 20549</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>FORM 8-K</font></b></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date of Report (Date of earliest event reported): </font><u><font size=2> May 9, 2005</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font SIZE=4>CTI INDUSTRIES CORPORATION</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

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

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

<!-- MARKER FORMAT-SHEET="Reg Cover Table 3 Col 10" FSL="Project" -->
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<TD ALIGN=CENTER WIDTH=33%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Illinois&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
(State or other jurisdiction<BR>
of incorporation)</FONT></TD>
<TD ALIGN=CENTER WIDTH=34%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-23115&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
(Commission<BR>
File Number)</FONT></TD>
<TD ALIGN=CENTER WIDTH=33%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36-2848943&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
(IRS Employer<BR>
Identification No.)</FONT></TD>
</TR>
</TABLE>
<BR>

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

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





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<TD ALIGN=CENTER WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22160 North Pepper Road, Barrington, IL&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
(Address of principal executive offices)</FONT></TD>
<TD ALIGN=CENTER WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60010&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
(Zip Code)</FONT></TD>
</TR>
</TABLE>
<BR>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Registrant&#146;s telephone number, including area code</font><u><font size=2>&nbsp;&nbsp;(847) 382-1000</font></u></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Former name or former address, if changed since last report.)</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></p>

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


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>|_|</font></p> </td>
        <td width="499" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p> </td> </tr></table>

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


<table border="0" cellspacing=0 cellpadding=0 width="520" style=' border-collapse:collapse'>
    <tr>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>|_|</font></p> </td>
        <td width="496" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)</font></p> </td> </tr></table>

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


<table border="0" cellspacing=0 cellpadding=0 width="642" style=' border-collapse:collapse'>
    <tr>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>|_|</font></p> </td>
        <td width="618" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p> </td> </tr></table>

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


<table border="0" cellspacing=0 cellpadding=0 width="639" style=' border-collapse:collapse'>
    <tr>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>|_|</font></p> </td>
        <td width="615" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p> </td> </tr></table>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="5">
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<pAGE>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>Item No. 2.02 &#150; Results of Operations and Financial Condition</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>On May 9, 2005, CTI Industries Corporation issued a press release reporting earnings and other financial results for both its fiscal quarter and year ended December 31, 2004. A copy of the Press Release is attached as Exhibit 99.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>Item No. 9.01 &#150; Exhibit</font></u></p>

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


<table border="0" cellspacing=0 cellpadding=0 width="327" style=' margin-left:.5in;border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td width="279" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The following exhibit is attached hereto:</font></p> </td> </tr></table>

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


<table border="0" cellspacing=0 cellpadding=0 width="258" style=' margin-left:.5in;border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exhibit No.</font></u></p> </td>
        <td width="66" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exhibit</font></u></p> </td> </tr></table>

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


<table  border="0" cellspacing=0 cellpadding=0 style='margin-left:.5in;border-collapse: collapse'>
    <tr>
        <td width="192" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>99</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Press Release dated May 9, 2005, captioned:  &#147;CTI Industries Corporation Reports 2004 Financial Results&#148;</font></p> </td> </tr></table>

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="5">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

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


<table border="0" cellspacing=0 cellpadding=0 width="193" style=' margin-left:3.0in;border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>CTI Industries Corporation</font></u></p> </td> </tr>
    <tr >
        <td width="95" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Registrant)</font></p> </td>
        <td  width="98">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

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

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


<table border="0" cellspacing=0 cellpadding=0 width="584" style=' border-collapse:collapse'>
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        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:  </font></p> </td>
        <td width="243" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>May 11, 2005</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="248" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Howard W. Schwan</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:left;'><font size=2>Howard W. Schwan, President </font></p>

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

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

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

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


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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>d63790_ex99.htm
<DESCRIPTION>PRESS RELEASE
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>EXHIBIT 99</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>CTI INDUSTRIES CORPORATION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>22160 N. Pepper Road</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Barrington, Illinois 60010</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>847-382-1000</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font SIZE=2>FOR IMMEDIATE RELEASE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>May 9, 2005</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>For More Information Contact:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="565" style=' border-collapse:collapse'>
    <tr >
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mary Ellen Dammyer</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Stephen M. Merrick</font></p> </td>
        <td  width="21">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investor Relations</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Executive Vice President</font></p> </td> </tr>
    <tr >
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>847-382-1000</font></p> </td>
        <td width="112" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>847-382-1000</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="384" ></td>

        <td width="112" ></td>

        <td width="48" ></td>

        <td width="21" ></td> </tr> </table>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>CTI Industries Corporation Reports 2004 Financial Results</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>CTI Industries Corporation </font><b><font size=2>(Nasdaq:  CTIBE</font></b><font size=2>), a leading provider of metalized balloons, latex balloons, novelty items and printed and laminated films, announces its financial results for the year ended December 31, 2004 and for the fourth quarter of 2004.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Year End Results</font></b></u><font size=2>. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>For the year ended December 31, 2004, consolidated revenues totaled $37,193,109 compared to consolidated revenues of $36,259,638 for the year ended December 31, 2003, an increase of 2.6%.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>For the year, the Company incurred a net loss of ($2,479,374), or $(1.28) per share (basic and diluted), compared to a net loss of ($566,047), or ($0.30) per share (basic and diluted).</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Fourth Quarter Results</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Consolidated revenues for the fourth quarter of 2004 totaled $8,581,819 compared to consolidated revenues of $9,006,420 for the fourth quarter of 2003, a decrease of 4.7%. The Company had a net loss for the fourth quarter of 2004 of ($2,565,224) or ($1.33) per share compared to a net loss of ($138,177) or ($0.07) per share for the fourth quarter of 2003.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&#147;It should be noted that a major component of our loss in the fourth quarter and
for the year is the provision for income taxes of $1,286,232 for the year, which
includes an income tax provision of $1,201,953 for the fourth quarter. This
income tax provision is a non-cash item resulting from management&#146;s
decision, based on events and circumstances that developed during the fourth
quarter, to increase the reserve against the Company&#146;s deferred tax asset.
It is management&#146;s determination that we cannot assure realization of the
deferred tax asset out of future earnings,&#148; reported Stephen Merrick,
 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="5">
<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>
Executive Vice President and Chief Financial Officer. &#147;Also, during the
year and the fourth quarter, we experienced lower margin sales which affected
our margins and profitability,&#148; he said.&nbsp;</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&#147;During the latter part of the year, we were able to effect reductions in our factory overhead which we believe will result in improved margins during 2005,&#148; said Howard Schwan, President of the Company.  &#147;Our goals for 2005 include shifting to higher margin sales and controlling our factory overhead and general costs,&#148; he said.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="94" style=' margin-left:.5in;border-collapse:collapse'>
    <tr>
        <td width="94" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>About CTI</font></b></p> </td> </tr></table>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>CTI is one of the leading producers and marketers of balloon products, both foil (metalized) and latex, and distributes these products throughout the United States and in several countries. It also develops, produces, prints and processes a variety of film products for commercial applications including packaging and flexible containers. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>This press release may contain forward-looking statements within the meaning of Section 17A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from any results or events projected or implied in the forward-looking statements, which involve a number of risks and uncertainties, including (i) the risks of generating and maintaining sales in a highly-competitive market, (ii) the ability of CTI to enter into or maintain contracts or relationships with customers, distributors, licensors and suppliers, (iii) manufacturing risks, as well as other risks and uncertainties reported by the Company is its SEC filings, and such statements should also be considered in conjunction with cautionary statements contained in CTI&#146;s most recent filings with the Securities and Exchange Commission on Forms 10-K and 10-Q.</font></p>

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

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

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


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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="5">
<p style='page-break-before:always'></p>
<pAGE>

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


<!-- MARKER FORMAT-SHEET="Head Left Bold" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CTI Industries
Corporation and Subsidiaries <BR>Summary Financial Information<BR> Year and Quarter ended
December 31, 2004 and 2003 </FONT></H1>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3>&nbsp;</th>
    <th>&nbsp;</th>
    <th><font face="Times New Roman, Times, Serif" size=1>December 31, 2004 </FONT></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>December 31,
      2003 </FONT></th>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=5>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td width=60% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&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;&nbsp;Assets </FONT></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=14% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </FONT></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=14% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Current Assets: </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Cash </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 526,470 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 329,742 </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Accounts
      receivable, net </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,123,137 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,620,726 </FONT></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Inventories </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,348,494 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,263,160 </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Other
      current assets </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>646,805 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,220,936 </FONT></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=5>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total current
      assets </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15,644,906 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15,434,564 </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Property
      and equipment, net </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,588,511 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,207,649 </FONT></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other assets </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,654,147 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,627,969 </FONT></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=5>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total Assets </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,887,564 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 30,270,182 </FONT></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=5>
      <hr NOSHADE color=#808080 size=2>
    </td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&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;Liabilities
      &amp; Stockholders&#146; Equity </FONT></td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total current
      liabilities </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 18,435,055 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 16,140,080 </FONT></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>Long
      term debt, less current maturities </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,119,745 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,830,217 </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other liabilities </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,371,364 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,079,041 </FONT></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Minority
      interest </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,230 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,263 </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Stockholders&#146;
      equity </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,951,170 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,211,581 </FONT></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=5>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total Liabilities
      &amp; Stockholders&#146; Equity </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 27,887,564 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 30,270,182 </FONT></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=5>
      <hr NOSHADE color=#808080 size=2>
    </td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Head Left Bold" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consolidated Statements
of Operations </FONT></H1>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=1> </FONT></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Year Ended
      December 31 </FONT><font face="Times New Roman, Times, Serif" size=1> </FONT></th>
    <th>&nbsp;</th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Quarter Ended
      December 31 </FONT></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=1> </FONT></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </FONT></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </FONT></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </FONT></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </FONT></th>
    <th>&nbsp;</th>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td width=50% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      sales </FONT></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      37,193,109 </FONT></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      36,259,638 </FONT></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      8,581,819 </FONT></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      9,006,420 </FONT></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cost of sales </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>30,840,989 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>29,626,450 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,078,875 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,991,701 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Gross profit </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,352,120 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,633,188 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>502,944 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,014,719 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Operating
      expenses </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,920,315 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,312,410 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,633,456 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,668,212 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Loss from
      operations </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(568,195 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(679,221 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,130,513 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(653,493 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other income
      (expense): </FONT></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
      expense </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,350,085 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,103,395 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(340,168 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(326,629 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>726,201 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>433,618 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>107,409 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>380,460 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Loss before
      income taxes and minority interest </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,192,079 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,348,998 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,363,272 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(599,662 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Income tax
      expense (benefit) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,286,232 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(782,468 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,201,953 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(460,702 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Loss before
      minority interest </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,478,311 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(566,530 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,565,225 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(138,960 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Minority
      interest in income (loss) of subsidiary </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,063 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(483 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(783 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net loss </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (2,479,374 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (566,047 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,565,224 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (138,177 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Basic income
      (loss) per common and common <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equivalent shares </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (1.28 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (0.30 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (1.31 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (0.07 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Diluted income
      (loss) per common and common<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equivalent shares </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (1.28 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (0.30 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (1.31 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (0.07 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;Weighted
      average number of shares and equivalent<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of common stock outstanding: </FONT></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,930,976 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,918,260 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,954,100 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,918,260 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,930,976 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,918,260 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,954,100 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,918,260 </FONT></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=11>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
</table>






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