<SUBMISSION>
<ACCESSION-NUMBER>0001193125-03-004742
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20030331
<FILING-DATE>20030513
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>EXX INC/NV/
<CIK>0000089261
<ASSIGNED-SIC>3944
<IRS-NUMBER>880325271
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-05654
<FILM-NUMBER>03696041
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1350 EAST FLAMINGO SUITE 689
<CITY>LAS VEGAS
<STATE>NV
<ZIP>89119
<PHONE>7025983223
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1350 EAST FLAMINGO SUITE 689
<CITY>LAS VEGAS
<STATE>NV
<ZIP>89119
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>SFM CORP
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML><HEAD>
<TITLE>Form 10-Q</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <hr size="4" width="100%" noshade color=black> <p align="center"><font size="5" face="Times New Roman"><b>SECURITIES AND EXCHANGE COMMISSION<br> </b></font> <font size="3"><b>Washington, D.C. 20549</b></font></p> <p
align="center"> <font size="5" face="Times New Roman"><b>FORM 10-Q</b></font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="100%" colspan="4" valign="bottom"> <p> <font size="2" face="Times New Roman"><b>(Mark One)</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p> <font size="3" face="Wingdings">x</font></p> </td>
<td width="91%" colspan="3" valign="bottom"> <p> <font size="3" face="Times New Roman"><b>Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p> <font size="2" face="Times New Roman"><b>For the quarterly period ended March 31, 2003</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p> <font size="2" face="Times New Roman"><b>Commission file number &nbsp;&nbsp;1-5654</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center"> <font size="6" face="Times New Roman"><b>EXX INC</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <hr size="1" width="60%" noshade color=black> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Exact Name of Registrant as Specified in Its Charter)</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>Nevada</b></font></p> </td>
<td width="8%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="46%" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>88-0325271</b></font></p> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <hr size="1" width="85%" noshade color=black> </td>
<td width="8%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="46%" valign="bottom"> <hr size="1" width="85%" noshade color=black> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>(State or Other Jurisdiction of Incorporation or Organization)</b></font></p> </td>
<td width="8%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="46%" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(IRS Employer Identification No.)</b></font></p> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="46%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>1350 East Flamingo Road, Suite 689, Las Vegas, Nevada</b></font></p> </td>
<td width="8%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="46%" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>89119-5263</b></font></p> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <hr size="1" width="85%" noshade color=black> </td>
<td width="8%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="46%" valign="bottom"> <hr size="1" width="85%" noshade color=black> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Address or Principal Executive Offices)</b></font></p> </td>
<td width="8%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="46%" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Zip Code)</b></font></p> </td> </tr>
<tr>
<td width="45%" colspan="2" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="8%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="46%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>(702) 598-3223</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <hr size="1" width="60%" noshade color=black> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>(Registrant&#146;s Telephone Number, Including Area Code)</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>NONE</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <hr size="1" width="60%" noshade color=black> </td> </tr>
<tr>
<td width="100%" colspan="4" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)</b></font></p> </td> </tr>
<tr>
<td width=61 style='border:none'></td>
<td width=267></td>
<td width=60></td>
<td width=334></td> </tr> </table> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant:&#160; (1) has filed all reports required to be filed by Section
13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months&#160; (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="13%">
<tr>
<td width="7%" valign="top"> <p> <font size="2" face="Times New Roman">Yes&nbsp;&nbsp;</font> <font size="2" face="Wingdings">x</font></p> </td>
<td width="6%" valign="top"> <p> <font size="2" face="Times New Roman">No&nbsp;&nbsp;</font> <font size="2" face="Wingdings">o</font></p> </td> </tr> </table> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12B-2 of the Exchange Act).</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="13%">
<tr>
<td width="7%" valign="top"> <p> <font size="2" face="Times New Roman">Yes&nbsp;&nbsp;</font> <font size="2" face="Wingdings">o</font></p> </td>
<td width="6%" valign="top"> <p> <font size="2" face="Times New Roman">No&nbsp;&nbsp;</font> <font size="2" face="Wingdings">x</font></p> </td> </tr> </table> <p><font size="2" face="Times New Roman">Number of shares of common stock outstanding as
of March 31, 2003:<br> 10,412,307 Class A Shares and 608,093 Class B Shares.</font></p> <hr size="4" width="100%" noshade color=black>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="8%" valign="top"> <p> <font size="2" face="Times New Roman"><b>PART 1.</b></font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>FINANCIAL INFORMATION</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p> <font size="2" face="Times New Roman"><b><u>ITEM 1.</u></b></font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>EXX INC AND SUBSIDIARIES</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>CONSOLIDATED FINANCIAL STATEMENTS</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>(In thousands, except share and per share amounts)</b></font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman"><b>A. Consolidated Balance
Sheets</b></font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>March 31,<br> 2003</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>December 31,<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>(unaudited)</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><u>ASSETS</u></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p align="center">&nbsp;</p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align="center">&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p align="center">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p align="center">&nbsp;</p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align="center">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">CURRENT ASSETS:</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Cash and cash equivalents</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">5,438</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">9,889</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Accounts receivable, net</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">26,075</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,897</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Inventories</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">12,765</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,711</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Other current assets</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,336</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">304</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Deferred tax asset</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">564</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">564</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">TOTAL CURRENT ASSETS</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">47,178</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">16,365</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Property, plant and equipment, net</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">39,806</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,620</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Goodwill</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,056</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Other non-current assets</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,728</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">420</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">TOTALS</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">91,768</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">18,405</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><u>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</u></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">CURRENT LIABILITIES:</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Notes payable and long-term debt, current portion</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,883</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">73</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Accounts payable and other current liabilities</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">22,100</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,175</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">TOTAL CURRENT LIABILITIES</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">24,983</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">4,248</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">LONG-TERM LIABILITIES:</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Long-term debt, less current portion</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">41,514</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,481</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Pension liability and other post-retirement benefits</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">11,562</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">359</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Deferred tax liability</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">596</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">596</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">TOTAL LONG-TERM LIABILITIES</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">53,672</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,436</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Minority interest</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">73</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><u>STOCKHOLDERS&#146; EQUITY</u></font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Preferred stock, $.01 par value, authorized 5,000,000 shares, none issued.</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Common stock, Class A, $.01 par value, authorized 25,000,000 shares, issued 12,061,607 shares</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">121</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">121</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Common stock, Class B, $.01 par value, authorized 1,000,000 shares, issued 624,693 shares</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">6</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">6</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Capital in excess of par value</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,670</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,670</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Accumulated other comprehensive loss</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(237</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(237</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Retained earnings</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">11,466</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">10,147</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Less treasury stock, 1,649,300 and 1,649,300 shares of Class A common stock and 16,600 and 16,600 shares of Class
B common stock, at cost, respectively</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(986</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(986</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total stockholders&#146; equity</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">13,040</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">11,721</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">TOTALS</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">91,768</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">18,405</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p><font size="2" face="Times New Roman"><b>See notes to consolidated financial statements.</b></font></p> <p align="center"> <font
size="2" face="Times New Roman"><b>2</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"> <font size="2" face="Times New Roman">&nbsp;</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="8%" valign="top"> <p> <font size="2" face="Times New Roman"><b>B.</b></font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>EXX INC AND SUBSIDIARIES</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>Consolidated Statements of Operations (Unaudited)</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>(In thousands, except share and per share amounts)</b></font></p> </td> </tr> </table> <BR>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="19%" colspan="5" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>For the Three-Month Period Ended</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="19%" colspan="5" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>March 31,<br> 2003</b></font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>March 31,<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net sales</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">29,857</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">3,789</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cost of sales</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">24,458</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,607</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Gross profit</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">5,399</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,182</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Selling, general and administrative expenses</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">3,102</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,077</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Operating income</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,297</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">105</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Interest expense</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(372</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(44</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Minority interest in income of consolidated subsidiary</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(12</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Other income, net</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">92</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">61</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income before income taxes</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,005</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">122</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income taxes</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(686</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(41</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net income</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,319</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">81</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net income per common share:</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Basic</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">.12</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">.01</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Diluted</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">.12</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">.01</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Weighted average common shares outstanding:</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Basic</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">11,020,400</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">11,424,497</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Diluted</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">11,231,740</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">11,485,532</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p><font size="2" face="Times New Roman"><b>See notes to consolidated financial statements.</b></font></p> <p align="center"> <font
size="2" face="Times New Roman"><b>3</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="8%" valign="top"> <p> <font size="2" face="Times New Roman"><b>C.</b></font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>EXX INC AND SUBSIDIARIES</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>Consolidated Statements of Cash Flow (Unaudited)</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>(In thousands)</b></font></p> </td> </tr> </table> <BR>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="19%" colspan="5" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>For the Three-Month Period Ended</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="19%" colspan="5" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>March 31,<br> 2003</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>March 31,<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><b>Cash flows from operating activities</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net income</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,319</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">81</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Adjustments to reconcile net income to net cash used in operating activities:</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">989</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">56</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Provision for bad debts</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">90</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Changes in operating assets and liabilities, net</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(5,221</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(1,514</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><b>Net cash used in operating activities</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(2,913</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(1,287</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><b>Cash flows from investing activities</b></font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Excess of cash acquired net of cash expended in acquisition of company</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,008</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Acquisition of property and equipment, net</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(1,223</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(31</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><b>Net cash used in investing activities</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(215</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(31</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><b>Cash flows from financing activities</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Net repayments on revolving credit line</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(1,141</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Repayment of term loan</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(82</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Payments on promissory notes/capital leases</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(100</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(16</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Purchases of treasury stock</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(30</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><b>Net cash used in financing activities</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(1,323</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(46</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><b>Net decrease in cash and cash equivalents</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(4,451</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(1,364</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><b>Cash and cash equivalents, beginning of period</b></font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">9,889</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">9,622</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><b>Cash and cash equivalents, end of period</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">5,438</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">8,258</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><b>Supplemental disclosure of cash flow information:</b></font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cash paid during the period for:</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Interest</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">92</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">44</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Income taxes</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">175</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p><font size="2" face="Times New Roman"><b>See notes to consolidated financial statements.</b></font></p> <p align="center"> <font
size="2" face="Times New Roman"><b>4</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="8%" valign="top"> <p> <font size="2" face="Times New Roman"><b>D.</b></font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>EXX INC AND SUBSIDIARIES</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>Notes to Consolidated Financial Statements</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>(In thousands, except number of shares and per share amounts)</b></font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman"><u>Note
1:</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited consolidated financial statements of EXX INC as of March 31, 2003 and 2002 reflect all adjustments which are necessary in the opinion of management for a fair
presentation of the results for the periods stated. All adjustments so made are of a normal recurring nature.&#160; Certain financial information and footnote disclosure normally included in consolidated financial statements in accordance with
accounting principles generally accepted in the United States of America have been condensed or omitted.&#160; The reader is referred to the audited consolidated financial statements and notes thereto included in the Registrant&#146;s Annual Report
on Form 10-K for the year ended December 31, 2002.&#160; Results for the three months ended March 31, 2003 are not necessarily indicative of the results to be expected for the full year ended December 31, 2003.</font></p> <p><font size="2"
face="Times New Roman"><u>Note 2</u>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Acquisition of Reorganized Newcor, Inc</u>.</font></p> <p> <font size="2" face="Times New Roman">On January 31, 2003, a Plan of Reorganization of
Newcor became effective.&#160; Under a rights offering to shareholders included as part of Newcor&#146;s Plan of Reorganization, the Company purchased 11,877 shares of common stock of Newcor for a total purchase price of $5,939.&#160; The shares
purchased by the Company constitute 98.975% of the outstanding common stock of the reorganized Newcor entity and, as a result, Newcor ceased to be a stand-alone public reporting company and became a subsidiary of the Company.&#160; The purchase
price was established in the Plan of Reorganization, as approved by the creditors, the United States Trustee for the District of Delaware and the United States Bankruptcy Court in the District of Delaware. The source of funds for the Company&#146;s
purchase was cash on hand.&#160; In addition to the purchase made by the Company, certain former shareholders of Newcor, Inc. purchased shares of common stock of Newcor under the rights offering made in connection with the Plan of
Reorganization.&#160; The former shareholders purchased an aggregate of 123 shares totaling $61, which represented 1.025%, of the aggregate purchase price and are accounted for as a minority interest in the EXX INC&#146;s consolidated financial
statements.&#160; The primary purpose of the acquisition of Newcor was to expand the Company&#146;s operations.&#160; Newcor designs and manufactures precision machine components and assemblies and custom rubber and plastic products primarily for
the automotive and agricultural vehicle markets.&#160; Newcor is also a supplier of standard and specialty machines and equipment systems mainly for the automotive and appliance industries.</font></p> <p> <font size="2" face="Times New Roman">The
following condensed balance sheet reflects the assets and liabilities of Newcor at their fair market values at January 31, 2003. </font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="80%">
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Unaudited)</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="87%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Current assets</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">38,203</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Property and equipment</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">37,903</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Intangibles and other assets</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2">4,471</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Total assets</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2">80,577</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Current liabilities</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">21,878</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Long-term debt</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">40,215</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Pension, post retirement and other liabilities</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">12,484</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Total liabilities</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">74,577</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="87%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newcor&#146;s operations are
included in the consolidated financial statements of the Company commencing January 31, 2003.</font></p> <p align="center"> <font size="2" face="Times New Roman"><b>5</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p> <font size="2" face="Times New Roman">The following condensed income statement reflects the results of operations for the three months ended March 31, 2003 and 2002 as if the acquisition of Newcor, Inc. occurred
on January 1, 2002.</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="15%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="60%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>March 31,<br> 2003</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>March 31,<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="15%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="60%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="15%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Revenue</font></p> </td>
<td width="60%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">41,873</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">45,553</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="15%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net income</font></p> </td>
<td width="60%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,408</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,082</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="15%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Earning per share </font></p> </td>
<td width="60%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Basic</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">.13</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">.09</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="15%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="60%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Diluted</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">.13</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">.09</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman">This information is not necessarily indicative of the actual results of operations that would
have occurred had the acquisition of Newcor, Inc. occurred on January 1, 2002. </font></p> <p> <font size="2" face="Times New Roman"><u>Note 3:</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Inventory</u></font></p> <p> <font
size="2" face="Times New Roman">Inventories are summarized as follows:</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>March 31,<br> 2003</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>December 31,<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cost and estimated earnings of uncompleted contracts in excess of related billings of $305 at March 31, 2003 and $0
at December 31, 2002</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">849</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Raw materials</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,297</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">737</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Work in process</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">754</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">152</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Finished goods</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">6,865</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,822</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">12,765</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,711</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p><font size="2" face="Times New Roman">Costs and estimated earnings of uncompleted contracts in excess of related billings represents
revenue recognized under the percentage of completion method in excess of amounts billed.</font></p> <p> <font size="2" face="Times New Roman"><u>Note 4:</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Credit Arrangements and
Debt</u></font></p> <p> <font size="2" face="Times New Roman">A summary of debt follows:</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>March 31,<br> 2003</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>December 31,<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Revolving credit line</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,245</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Term loan, bank, variable interest, due 2008</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,851</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Notes payable, secured</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">3,419</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">771</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Capital lease obligations</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">782</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">783</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Limited obligation revenue bonds, variable interest rate (1.3% for 2003) due 2008</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">6,100</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Notes payable, 6% due 2013, unsecured</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">28,000</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">44,397</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,554</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Less current portion</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(2,883</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(73</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">41,514</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,481</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="76%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman"><b>6</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font size="2" face="Times New Roman"><u>Note 5:</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Earnings per share</u></font></p> <p> <font size="2" face="Times New Roman">The difference between
the number of shares used to compute basic net income per share and diluted net income per share relates to additional shares to be issued upon the assumed exercise of stock options, net of shares hypothetically repurchased at the average price with
the proceeds of exercise.&#160; For the three months ended March 31, 2003, these shares amounted to 211,340 shares.&#160; For the three months ended March 31, 2002, these shares amounted to 61,035 shares.&#160; </font></p> <p> <font size="2"
face="Times New Roman"><u>Note 6:</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Segment Reporting</u></font></p> <p> <font size="2" face="Times New Roman">The Company is organized into two business segments:&#160; The Mechanical
Equipment segment and the Plastics and Rubber segment.&#160; The Mechanical Equipment segment produces transmission, power train and engine components and assemblies for the automotive, medium and heavy-duty truck, and agricultural vehicle
industries as well as electric motors and telecommunications equipment.&#160; The Plastics and Rubber segment produces cosmetic and functional seals and boots and functional engine compartment products primarily for the automotive industry and
toys.&#160; </font></p> <p> <font size="2" face="Times New Roman">The accounting policies of the segments are the same as those of the Company.&#160; There are no intersegment sales and management does not allocate all corporate expenses to the
segments.&#160; The Company evaluates the performance of its segments and allocates resources to them based on operating income from continuing operations.&#160; Information by operating segment is summarized below:</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="54%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Mechanical<br> Equipment</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Plastics &amp;<br> Rubber</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Corporate</b></font></p> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="9%" colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Total</b></font></p> </td>
<td width="1%" valign="bottom"> <p align="center">&nbsp;</p> </td> </tr>
<tr>
<td width="54%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="8%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Sales to unaffiliated customers three months ended March 31,</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">2003</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">22,909</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">6,948</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">29,857</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">2002</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,791</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">1,998</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">3,789</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Operating income (loss) three months ended March 31,</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">2003</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,372</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">952</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(1,027</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">2,297</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">2002</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(68</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">372</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(199</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">105</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income (loss) before income taxes three months ended March 31,</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:1em; text-indent:-1em">&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">2003</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,353</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">949</font></p> </td>
<td width="2%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(1,297</font></p> </td>
<td width="2%" valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,005</font></p> </td>
<td width="1%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="54%" valign="bottom" bgcolor="#cceeff"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">2002</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(48</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">352</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">(182</font></p> </td>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td width="8%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size="2" face="Times New Roman">122</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"><font size="2" face="Times New Roman"><b>7</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="8%" valign="top"> <p> <font size="2" face="Times New Roman"><b><u>ITEM 2.</u></b></font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>EXX INC AND SUBSIDIARIES</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</b></font></p> </td> </tr>
<tr>
<td width="8%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="92%" valign="top"> <p> <font size="2" face="Times New Roman"><b>(In thousands, except for per share amounts)</b></font></p> </td> </tr> </table> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following management&#146;s discussion and analysis of results of operations and financial condition contains certain forward-looking statements which are covered
under the safe harbor provisions of the Private Securities Legislation Reform Act of 1995 with respect to the Company&#146;s future financial performance. Although EXX INC believes the expectations reflected in such forward-looking statements are
based on reasonable assumptions, it can give no assurance that its expectations will be realized.&#160; Forward-looking statements involve known and unknown risks which may cause EXX INC&#146;s actual results and corporate developments to differ
materially from those expected.&#160; Factors that could cause results and developments to differ materially from EXX INC&#146;s expectations include, without limitation, changes in manufacturing and shipment schedules, delays in completing plant
construction and acquisitions, new product and technology developments, competition within each business segment, cyclicality of the markets for the products of a major segment, litigation, significant cost variances, the effects of acquisitions and
divestitures, and other risks.</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Results of Operations</u></font></p>
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newcor&#146;s operations are included in the consolidated
financial statements of the Company commencing January 31, 2003.&#160; The results described below are not indicative of true period to period comparisons since the 2003 three month period includes EXX INC for the full period and the Newcor portion
only since January 31, while the 2002 three month period only includes the EXX INC operations.</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is organized into two business segments, the Mechanical Equipment
segment and the Plastics and Rubber segment.&#160; The Mechanical Equipment segment produces transmission, powertrain and engine components and assemblies for the automotive, medium and heavy-duty truck and agricultural vehicle industries as well as
electric motors and telecommunications equipment.&#160; The Plastics and Rubber segment produces cosmetic and functional seals and boots and functional engine components primarily for the automotive industry and toys.</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales for the first quarter of 2003 were $29,857 compared to $3,789 in 2002, a
688% increase.&#160; The Mechanical Equipment segment reported total sales of $22,909, which was an increase of $21,118 or 1,179% more than the prior year&#146;s $1,791, primarily due to the acquisition of Newcor, Inc .&#160; The Plastics and Rubber
segment reflected a sales increase of 248% to $6,948 from $1,998 in 2002, primarily due to the acquisition of Newcor, Inc.&#160; Without the acquisition, sales in the Mechanical Equipment segment increased 21% between the periods while sales in the
Plastics and Rubber segment (formerly Toys) increased 8%.</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit for the first quarter 2003 totaled $5,399 compared to $1,182 for the
comparable period in 2002, primarily due to the acquisition of Newcor, Inc.&#160; Gross profit in the Mechanical Equipment group increased 866% between the periods.&#160; The Plastics and Rubber group accounted for a 113% increase in gross profit
between the periods.&#160; Without the acquisition, gross profit in the Mechanical Equipment segment increased 47% while the gross profit in the Plastics and Rubber segment (formerly Toys) increased 1%.&#160;&#160; Without the acquisition, on an
overall basis, gross profit increased 6% due primarily to the Mechanical Equipment segment.</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income was $2,297 in the first quarter of 2003 compared to an operating
income of $105 during the first quarter of 2002.&#160; The increase in operating income was primarily the result of the Newcor, Inc. acquisition.</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense was $372, compared to $44 in the corresponding period last
year.&#160; The increase in the interest expense is the result of the added indebtedness of Newcor, Inc. which increased total debt approximately $42,843 and is listed in Note 4. </font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net income for the first quarter of 2003 was $1,319 or 12 cents per share
(basic and diluted) compared to a net income of $81 or 1 cent per share (basic and diluted) in the comparable period of 2002.</font></p> <p align="center"> <font size="2" face="Times New Roman"><b>8</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Liquidity and Capital Resources</u></font></p> <p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended March 31, 2003, the Company utilized
$2,913 in operating activities as compared to utilizing $1,287 in the corresponding period of the preceding year.&#160; For the three months ended March 31, 2003, the Company utilized $215 in its investment activities, which related to the Newcor
Inc. acquisition and the purchase of equipment.&#160; In the corresponding period of the preceding year, the Company utilized $31 in its investment activities principally for the purchase of equipment.&#160; Cash totaling $1,323 was used in
financing activities during the three months ended March 31, 2003 principally for various repayments of debt instruments, compared to $46 for the three months ended March 31, 2002 principally for the purchase of treasury stock.</font></p> <p><font
size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 2003, the Company had working capital of approximately
$22,195 and a current ratio of 1.9 to 1.&#160; In addition, as described in Notes to Financial Statements, the Company had $41,514 of long-term debt outstanding.&#160; The Company is obtaining its working capital needs through a revolving credit
line totaling $18,000 which the Company considers to be more than adequate to handle its current working capital needs.</font></p> <p> <font size="2" face="Times New Roman"><b><u>ITEM
4.</u></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Controls and Procedures</u></b></font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March 28, 2003 the
Chairman of the Board, Chief Executive Officer and Chief Financial Officer, David A. Segal evaluated the effectiveness of the company&#146;s disclosure control and procedures.&#160; Based on his review, he has concluded that the disclosure controls
and procedures in place are effective in all material respects to insure that the information relating to the Company in the reports that it filed under the Securities and Exchange Act of 1934, as amended, is recorded, processed and summarized as
and when required.</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As regards internal controls, his review did not indicate any significant changes in internal controls or other
factors that could significantly affect these controls subsequent to March 28, 2003 including any corrective action with regard to significant deficiencies and material weaknesses.&#160; The evaluation process and its results were reported to the
EXX INC Audit Committee and to the outside auditors on April 24, 2003.</font></p> <p> <font size="2" face="Times New Roman"><b>PART II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION</b></font></p> <p> <font size="2"
face="Times New Roman"><b><u>ITEM 6.</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Exhibits and Reports on Form 8-K</u></b></font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">(a)</font></p> </td>
<td width="95%" valign="top"> <p> <font size="2" face="Times New Roman">99.1 Certification of Chief Executive Officer and Chief Financial Officer.</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="95%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">(b)</font></p> </td>
<td width="95%" valign="top"> <p> <font size="2" face="Times New Roman">On February 5, 2003, a Form 8-K was filed regarding the acquisition of the reorganized Newcor stock.&#160; No financial statements were filed.</font></p> </td> </tr> </table> <p
align="center"> <font size="2" face="Times New Roman">SIGNATURE</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 thereunto duly authorized.</font></p>
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<tr>
<td width="47%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="28%" valign="bottom"> <p> <font size="2" face="Times New Roman">E<small>XX</small> I<small>NC</small></font></p> </td>
<td width="24%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="47%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="28%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="24%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="47%" valign="bottom"> <p> <font size="2" face="Times New Roman">Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May 13, 2003</font></p> </td>
<td width="28%" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman">/s/ D<small>AVID</small> A. S<small>EGAL</small></font></p> </td>
<td width="24%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="47%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="28%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="24%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="47%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="28%" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>David A. Segal<br> Chairman of the Board<br> Chief Executive Officer<br> Chief Financial Officer</b></font></p> </td>
<td width="24%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"><font size="2" face="Times New Roman"><b>9</b></font></p>

<p Style = "page-break-before-always">
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"> <font size="2" face="Times New Roman"><b>CERTIFICATION</b></font></p> <p> <font size="2" face="Times New Roman">I, David Segal, Chairman of the Board, Chief Executive Officer, and Chief Financial
Officer hereby certify that:</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">1.</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">I have reviewed this quarterly report on Form 10-Q of EXX INC (the &#147;Registrant&#148;);</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">2.</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">3.</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">4.</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
have:</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">a)</font></p> </td>
<td width="80%" valign="top"> <p> <font size="2" face="Times New Roman">designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by
others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">b)</font></p> </td>
<td width="80%" valign="top"> <p> <font size="2" face="Times New Roman">evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the
&#147;Evaluation Date&#148;); and</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">c)</font></p> </td>
<td width="80%" valign="top"> <p> <font size="2" face="Times New Roman">presented in this quarterly report my conclusions about the effectiveness of the disclosure controls and procedures based on my evaluation as of the Evaluation Date;</font></p>
</td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">5.</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">I have disclosed, based on my most recent evaluation, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or persons
performing the equivalent functions):</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">a)</font></p> </td>
<td width="80%" valign="top"> <p> <font size="2" face="Times New Roman">all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant&#146;s ability to record, process, summarize and report
financial data and have identified for the registrant&#146;s auditors any material weaknesses in internal controls; and</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">b)</font></p> </td>
<td width="80%" valign="top"> <p> <font size="2" face="Times New Roman">any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls; and</font></p> </td>
</tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size="2" face="Times New Roman">6.</font></p> </td>
<td width="90%" colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal
controls subsequent to the date of my most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></p> </td> </tr> </table> <BR>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="47%" valign="bottom"> <p> <font size="2" face="Times New Roman">Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May 13, 2003</font></p> </td>
<td width="34%" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman">/s/ D<small>AVID</small> A. S<small>EGAL</small></font></p> </td>
<td width="18%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="47%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="34%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="18%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="47%" valign="bottom"> <p align="center">&nbsp;</p> </td>
<td width="34%" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>David A. Segal<br> Chairman of the Board<br> Chief Executive Officer<br> Chief Financial Officer</b></font></p> </td>
<td width="18%" valign="bottom"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"><font size="2" face="Times New Roman"><b>10</b></font></p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>dex991.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
<TEXT>
<HTML><HEAD>
<TITLE>CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

<P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Exhibit 99.1
</B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>CERTIFICATION PURSUANT TO
</B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>18 U.S.C. SECTION 1350, </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>AS ADOPTED PURSUANT TO </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002 </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">In connection with the Quarterly Report
of EXX INC (the &#147;Company&#148;) on Form 10-Q for the period ending March 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, David A. Segal, Chairman of the Board, Chief Executive
Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. &#167; 1350, as pursuant to &#167; of the Sarbanes-Oxley Act of 2002, that: </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TR>
<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(1)</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The Report fully complies with the requirements of section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and </FONT></TD></TR></TABLE><P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(2)</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
</FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TR VALIGN="TOP">
<TD WIDTH="52%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Date: May 13, 2003 </FONT></P></TD>
<TD> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><U>/s/ David A. Segal</U> </FONT></P></TD></TR></TABLE><P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">David A. Segal </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">Chairman of the Board </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Chief Executive Officer
</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Chief Financial Officer </FONT></P>
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