<SUBMISSION>
<ACCESSION-NUMBER>0001017062-02-001941
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20020930
<FILING-DATE>20021113
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>COAST DISTRIBUTION SYSTEM INC
<CIK>0000728303
<ASSIGNED-SIC>5013
<IRS-NUMBER>942490990
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-09511
<FILM-NUMBER>02820028
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1982 ZANKER RD
<CITY>SAN JOSE
<STATE>CA
<ZIP>95112
<PHONE>4084368611
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1982 ZANKER RD
<CITY>SAN JOSE
<STATE>CA
<ZIP>95112
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>COAST RV INC
<DATE-CHANGED>19880619
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.htm
<DESCRIPTION>FORM 10-Q FOR THE COAST DISTRIBUTION SYSTEM
<TEXT>
<HTML><HEAD>
<TITLE>Form 10-Q for The Coast Distribution System</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <hr size=4 width="100%" noshade color=black align=center> <p align=center><font size=5 face="Times New Roman"><b>SECURITIES AND EXCHANGE COMMISSION<br></b></font><font face="Times New Roman" 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> <p><font size=2 face="Times New Roman"><b>(Mark One)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="6%" valign=top> <p><font size=3 face=Wingdings>x</font></p> </td>
<td width="93%" valign=top> <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="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="93%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="93%" valign=top> <p><font size=2 face="Times New Roman"><b>For the quarterly period ended September 30, 2002</b></font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="93%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="2" valign=top> <p align=center><font size=2 face="Times New Roman"><b>OR</b></font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="93%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><font size=3 face=Wingdings>o</font></p> </td>
<td width="93%" valign=top> <p><font size=3 face="Times New Roman"><b>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="93%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="93%" valign=top> <p><font size=2 face="Times New Roman"><b>For the transition period from&nbsp;&nbsp;__________________&#160; to&#160; __________________</b></font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="93%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="2" valign=top> <p align=center><font size=2 face="Times New Roman"><b>Commission File Number 1-9511</b></font></p> </td> </tr> </table> <p align=center><font size=6 face="Times New Roman"><b>THE COAST DISTRIBUTION SYSTEM,
INC.<br></b></font><font face="Times New Roman" size=1><b>(Exact name of Registrant as specified in its charter)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="49%" valign=bottom> <p align=center><font size=2 face="Times New Roman"><b>DELAWARE</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign=bottom> <p align=center><font size=2 face="Times New Roman"><b>94-2490990</b></font></p> </td> </tr>
<tr>
<td width="49%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td> </tr>
<tr>
<td width="49%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>(State&nbsp;or&nbsp;other&nbsp;jurisdiction of&nbsp;incorporation&nbsp;or&nbsp;organization)</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>(I.R.S.&nbsp;Employer Identification&nbsp;Number)</b></font></p> </td> </tr>
<tr>
<td width="49%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="49%" valign=bottom> <p align=center><font size=2 face="Times New Roman"><b>350&nbsp;Woodview&nbsp;Avenue,&nbsp;Morgan&nbsp;Hill,&nbsp;California</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign=bottom> <p align=center><font size=2 face="Times New Roman"><b>95037</b></font></p> </td> </tr>
<tr>
<td width="49%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>(Address of principal executive offices)</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>(Zip Code)</b></font></p> </td> </tr>
<tr>
<td width="49%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" valign=bottom> <p align=center><font size=2 face="Times New Roman"><b>(408) 782-6686</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" 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="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" valign=bottom> <p align=center><font size=2 face="Times New Roman"><b>Not Applicable</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" 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 year)</b></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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="15%">
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">YES</font></p> </td>
<td width="3%" valign=top> <p><font size=2 face=Wingdings>x</font></p> </td>
<td width="3%" valign=top> <p><font size=2 face="Times New Roman">NO</font></p> </td>
<td width="3%" valign=top> <p><font size=2 face=Wingdings>o</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman"><b>APPLICABLE ONLY TO CORPORATE ISSUERS:</b></font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate the number of shares outstanding of each of the issuer&#146;s classes of common stock, as of the latest practicable date.</font></p>
<p align=center><font size=2 face="Times New Roman">4,390,864 shares of Common Stock as of October 28, 2002.</font></p> <hr size=4 width="100%" noshade color=black align=center> <BR>

<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>PART I &#151; FINANCIAL INFORMATION</b></font></p> <p><font size=2 face="Times New Roman"><b>ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL
STATEMENTS</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>THE COAST DISTRIBUTION SYSTEM, INC. AND SUBSIDIARIES</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>CONDENSED CONSOLIDATED INTERIM BALANCE
SHEETS<br> (Dollars in thousands)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="72%" colspan="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>September 30,<br> 2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>December 31,<br> 2001</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" 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><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom> <p align=center><font size=2 face="Times New Roman"><b>ASSETS</b></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="10%" 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="10%" 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="72%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">CURRENT ASSETS</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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Cash</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,225</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,001</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Accounts receivable &#150; net of allowances of $1,277 and $971, respectively</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">13,165</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">12,760</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Inventories</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">34,360</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">32,356</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Other current assets</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,595</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,980</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="66%" valign=bottom bgcolor="#cceeff"> <p><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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">50,345</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">48,097</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="72%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">PROPERTY, PLANT, AND EQUIPMENT&#151;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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">2,595</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">2,137</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">OTHER 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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">8,429</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">10,002</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="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">61,369</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">60,236</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="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom bgcolor="#cceeff"> <p align=center><font size=2 face="Times New Roman"><b>LIABILITIES</b></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="10%" 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="10%" 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="72%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">CURRENT LIABILITIES</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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Current maturities of long-term obligations</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">59</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">26</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Accounts payable &#150; trade</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">7,524</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">10,603</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Other 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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,063</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,241</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="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="66%" valign=bottom bgcolor="#cceeff"> <p><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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">9,646</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">12,870</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="72%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">LONG-TERM OBLIGATIONS</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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Secured note payable to bank</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">24,182</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">21,785</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Other long-term liabilities</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">359</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">206</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">24,541</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">21,991</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="72%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">STOCKHOLDERS&#146; EQUITY</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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2
face="Times New Roman">Preferred&nbsp;stock,&nbsp;$.001&nbsp;par&nbsp;value:&nbsp;5,000,000&nbsp;shares&nbsp;authorized:&nbsp;none&nbsp;issued&nbsp;or&nbsp;outstanding:</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="10%" 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="10%" 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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Common&nbsp;stock,&nbsp;$.001&nbsp;par&nbsp;value:&nbsp;20,000,000&nbsp;shares&nbsp;authorized;&nbsp;4,390,864&nbsp;and&nbsp;4,366,880 <br> &nbsp;&nbsp; issued and
outstanding, respectively</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">16,837</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">16,823</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Accumulated comprehensive loss</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(955</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(968</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Retained earnings</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">11,300</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">9,520</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">27,182</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">25,375</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="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">61,369</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">60,236</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="72%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width=20></td>
<td width=20></td>
<td width=483></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=11></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">The accompanying notes are an integral part of these statements.</font></p> <p align=center><font size=2 face="Times New Roman">2</font></p> <BR>

<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>THE COAST DISTRIBUTION SYSTEM, INC. AND SUBSIDIARIES</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>CONDENSED CONSOLIDATED INTERIM
STATEMENTS OF OPERATIONS<br> (Dollars in thousands, except per share data)<br> (Unaudited)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="46%" colspan="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Three Months Ended<br> September 30,</b></font></p> </td>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Nine Months Ended<br> September 30,</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="46%" colspan="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</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="46%" colspan="3" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net sales</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">39,514</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">35,886</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">122,596</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">114,014</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="46%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Cost of sales, including distribution costs</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">32,901</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">31,484</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">101,777</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">97,453</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Gross profit</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">6,613</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,402</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">20,819</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">16,561</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="46%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Selling, general and administrative expenses</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">5,604</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">5,705</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">16,485</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">17,640</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Operating income (loss)</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,009</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,303</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,334</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,079</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="46%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Other income (expense)</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="10%" 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="10%" 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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(328</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(542</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,121</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,915</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Other</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,296</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(10</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,344</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(328</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="10%" 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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,131</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(571</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="46%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Income (loss) before 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">681</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(549</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">3,203</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,650</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="46%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Income tax provision (benefit)</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">229</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(95</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,423</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(413</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">NET INCOME (LOSS)</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">452</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(454</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,780</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,237</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="5%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net income (loss) per share:</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="10%" 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="10%" 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="10%" 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="10%" 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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Basic</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">$</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">0.10</font></p> </td>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(0.10</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">$</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">0.41</font></p> </td>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(0.28</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Diluted</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.10</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.10</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.40</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.28</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </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 align=left> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=left> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Shares used in computing net income (loss) per share:</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="10%" 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="10%" 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="10%" 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="10%" 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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Basic</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">4,390,864</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">4,366,880</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">4,385,681</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">4,357,964</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Diluted</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,507,431</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,366,880</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,478,856</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,357,964</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=20></td>
<td width=20></td>
<td width=296></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=10></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">The accompanying notes are an integral part of these statements.</font></p> <p align=center><font size=2 face="Times New Roman">3</font></p> <BR>

<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>THE COAST DISTRIBUTION SYSTEM, INC. AND SUBSIDIARIES</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>CONDENSED CONSOLIDATED INTERIM
STATEMENTS OF CASH FLOWS<br> (Dollars in thousands)</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>Nine months ended September 30,<br> (Unaudited)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="72%" colspan="6" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="6" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="6" valign=bottom> <p><font size=2 face="Times New Roman">Cash flows from operating activities:</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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net income (loss)</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,780</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,237</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom> <p><font size=2 face="Times New Roman">Adjustments to reconcile net earnings (loss) to net cash used in operating activities:</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="10%" 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="10%" 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="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="67%" colspan="4" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Depreciation and amortization</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">619</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">975</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="5%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="67%" colspan="4" valign=bottom> <p><font size=2 face="Times New Roman">Gain on sale of property and equipment</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(1,163</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="67%" colspan="4" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Changes in assets and 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="10%" 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="10%" 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="8%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="64%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Increase in accounts receivable</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(405</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(1,548</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="8%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="64%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Decrease (increase) in inventories</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(2,004</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,449</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="8%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="64%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Decrease (increase) in prepaids and other current assets</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">385</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(89</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="8%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="64%" colspan="3" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Increase (decrease) in accounts payable</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(3,079</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,389</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="8%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="64%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Decrease in other current liabilities</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(145</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(188</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="8%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="64%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="11%" colspan="4" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="61%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Total adjustments</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(4,629</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,825</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="11%" colspan="4" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="61%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="14%" colspan="5" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="57%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net cash provided by (used in) operating activities</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(2,849</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">588</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="72%" colspan="6" valign=bottom> <p><font size=2 face="Times New Roman">Cash flows from investing activities:</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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Proceeds from sale of property and equipment</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="10%" 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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,688</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom> <p><font size=2 face="Times New Roman">Capital expenditures</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(1,056</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(366</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Decrease in other 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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,552</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">610</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="11%" colspan="4" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="61%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net cash provided by investing activities</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">496</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,932</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="72%" colspan="6" valign=bottom> <p><font size=2 face="Times New Roman">Cash flows from financing activities:</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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net borrowings (repayments) under line-of-credit agreement</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,397</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,892</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom> <p><font size=2 face="Times New Roman">Net borrowings (repayments) of other long-term debt</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">153</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(1,214</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Issuance of common stock pursuant to employee stock option and purchase plans</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">14</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">23</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom> <p><font size=2 face="Times New Roman">Redemption of redeemable preferred stock of subsidiary</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(48</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="69%" colspan="5" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="11%" colspan="4" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="61%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net cash provided by (used in) financing activities</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,564</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(3,131</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="72%" colspan="6" valign=bottom> <p><font size=2 face="Times New Roman">Effect of exchange rate changes on cash</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="10%" 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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(254</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="72%" colspan="6" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="11%" colspan="4" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="61%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">NET INCREASE IN CASH</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">224</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">135</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="72%" colspan="6" valign=bottom> <p><font size=2 face="Times New Roman">Cash beginning of period</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,001</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">539</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="6" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" colspan="6" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Cash end of period</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,225</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">674</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="72%" colspan="6" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width=20></td>
<td width=20></td>
<td width=20></td>
<td width=20></td>
<td width=27></td>
<td width=416></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=14></td>
<td width=7></td>
<td width=72></td>
<td width=10></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">The accompanying notes are an integral part of these statements.</font></p> <p align=center><font size=2 face="Times New Roman">4</font></p> <BR>

<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>THE COAST DISTRIBUTION SYSTEM, INC. AND SUBSIDIARIES</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>NOTES TO CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">1.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The accompanying condensed consolidated interim financial statements have been prepared in accordance with accounting principles and SEC rules applicable to interim financial
information.&#160; Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (&#147;GAAP&#148;) for complete financial statements.&#160; In the opinion of
management, these unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments and accruals) necessary for a fair presentation of the Company&#146;s financial position as of
September&nbsp;30, 2002 and the results of its operations and cash flows for the three and nine months ended September&nbsp;30, 2002 and 2001.&#160; The accounting policies followed by the Company are set forth in Note&nbsp;A to the Company&#146;s
financial statements in its Annual Report on Form&nbsp;10-K for its fiscal year ended December&nbsp;31, 2001.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">2.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The Company&#146;s business is seasonal and its results of operations for the three and nine months ended September&nbsp;30, 2002 and 2001 are not necessarily indicative of the
results to be expected for the full year ending December&nbsp;31, 2002.&#160; See &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations &#150; Seasonality and Inflation&#148; in Item&nbsp;2 of Part&nbsp;I
of this Report.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">3.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">Basic earnings per share are computed using the weighted average number of common shares outstanding during the period.&#160; Diluted earnings per share are computed using the
weighted average number of common and potentially dilutive securities outstanding during the period.&#160; Potentially dilutive securities consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock
method).&#160; Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive.&#160; For the three and nine month periods ended September&nbsp;30, 2002, a total of 430,500 common shares issuable on exercise of
stock options were excluded from the computation of diluted earnings per share because their exercise prices were greater than the average market price of the Company&#146;s common stock during these periods.&#160; For the three and nine month
periods ended September&nbsp;30, 2001, a total of 751,500 common shares issuable on exercise of stock options were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive due to the net losses
incurred in those periods.</font></p> </td> </tr> </table>
<table align=center border=0 cellspacing=0 cellpadding=0 width="90%">
<tr>
<td width="46%" colspan="3" valign=bottom height="2"> <p><font size=2 face="Times New Roman">Numerator:</font></p> </td>
<td width="2%" valign=bottom height="2"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="12" valign=bottom height="2"> <center> <font face="Times New Roman, Times, serif" size="2"><b><font size="1">(In thousands)</font> </b></font> </center> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net income (loss)</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">452</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(454</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,780</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,237</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="46%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Denominator:</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="10%" 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="10%" 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="10%" 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="10%" 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="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Weighted average shares outstanding</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,391</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,367</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,386</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,358</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Dilutive effect of stock options</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">116</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">93</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="10%" 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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Denominator for diluted net income loss per share</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,507</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,367</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,479</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4,358</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="5%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width=18></td>
<td width=18></td>
<td width=266></td>
<td width=13></td>
<td width=6></td>
<td width=65></td>
<td width=13></td>
<td width=6></td>
<td width=65></td>
<td width=13></td>
<td width=6></td>
<td width=65></td>
<td width=13></td>
<td width=6></td>
<td width=65></td>
<td width=9></td> </tr> </table> <Br>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">4.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The Company leases its corporate offices, warehouse facilities and data processing equipment.&#160; Those leases are classified as operating leases as they do not meet the
capitalization criteria of SFAS No.&nbsp;13.&#160; The office and warehouse leases expire over the next ten years and the equipment leases expire over the next two years.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The minimum future rental commitments under noncancellable operating leases having an initial or remaining term in excess of one year as of December&nbsp;31, 2001 are as
follows:</font></p> </td> </tr> </table>
<table align=center border=0 cellspacing=0 cellpadding=0 width="80%">
<tr>
<td width="59%" valign=bottom height="3"> <p><font size=1 face="Times New Roman"><b>Year Ending<br> December 31,</b></font></p> </td>
<td width="2%" valign=bottom height="3"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom height="3"> <p align=center><font size=1 face="Times New Roman"><b>Equipment</b></font></p> </td>
<td width="2%" valign=bottom height="3"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom height="3"> <p align=center><font size=1 face="Times New Roman"><b>Facilities</b></font></p> </td>
<td width="2%" valign=bottom height="3"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom height="3"> <p align=center><font size=1 face="Times New Roman"><b>Total</b></font></p> </td>
<td width="1%" valign=bottom height="3"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign=bottom height="2"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom height="2"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom height="2"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom height="2"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="10%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom height="2"> <p align=center><font size=1 face="Times New Roman"><b>(in thousands)</b></font></p> </td>
<td width="2%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="10%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign=bottom height="2"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign=bottom bgcolor="#cceeff"> <p><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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">319</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,989</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">3,308</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="59%" valign=bottom> <p><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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">200</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">2,908</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">3,108</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">2004</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="10%" 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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,077</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">2,077</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="59%" valign=bottom> <p><font size=2 face="Times New Roman">2005</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,173</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">1,173</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">2006</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="10%" 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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,141</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,141</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="59%" valign=bottom> <p><font size=2 face="Times New Roman">Thereafter</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">2,638</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">2,638</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">519</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">12,926</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">13,445</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="59%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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">5</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align=center><font size=2 color=black face="Times New Roman"><b>THE COAST DISTRIBUTION SYSTEM, INC. AND SUBSIDIARIES</b></font></p> <p align=center><font size=2 color=black face="Times New Roman"><b>NOTES TO
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">5.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The Company has one operating segment, the distribution of replacement parts, accessories and supplies for recreational vehicles and boats.&#160; Net sales, by region, for the three
and nine months ended September&nbsp;30 are as follows:</font></p> </td> </tr> </table> <br>
<table align=center border=0 cellspacing=0 cellpadding=0 width="80%">
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Three Months Ended<br> September 30,</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Nine Months Ended<br> September 30,</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="50%" colspan="11" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>(In thousands)</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">USA</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">33,163</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">30,339</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">101,759</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">94,160</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="46%" valign=bottom> <p><font size=2 face="Times New Roman">Canada</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">6,347</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">5,537</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">20,808</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">19,829</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Other</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">4</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">10</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">29</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">25</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="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">39,514</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">35,886</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">122,596</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">114,014</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="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <br>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">6.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman"><u>Goodwill and Other Intangible Assets</u>.&#160; As of January&nbsp;1, 2002, the Company adopted SFAS&nbsp;142, <i>Goodwill and Other Intangible Assets</i>
(&#147;SFAS&nbsp;142&#148;).&#160; In accordance with SFAS&nbsp;142, the Company has ceased amortizing goodwill recorded in past business combinations effective as of January&nbsp;1, 2002.&#160; As a result, there is no charge for goodwill
amortization expense contained in the Company&#146;s statements of income for the three and nine months ended September&nbsp;30, 2002; whereas the Company&#146;s statement of operations for the three and nine months ended September&nbsp;30, 2001
does contain charges for goodwill amortization expense.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The following is the Company&#146;s disclosure of what reported net earnings and earnings per share would have been in all periods presented, exclusive of amortization expenses
(including any related tax effects) recognized in those periods related to goodwill, intangible assets that are no longer being amortized and changes to amortization periods for intangible assets that will continue to be amortized:</font></p> </td>
</tr> </table> <br>
<table align=center border=0 cellspacing=0 cellpadding=0 width="80%">
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Three Months Ended<br> September 30,</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Nine Months Ended<br> September 30,</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="50%" colspan="11" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>(In thousands, except per share amounts)</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net income (loss), as reported</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">452</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(454</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,780</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,237</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="46%" valign=bottom> <p><font size=2 face="Times New Roman">Amortization, net of tax</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">120</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">361</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Adjusted net income (loss)</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">452</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(334</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,780</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(876</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="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Basic income (loss) per share, as reported</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.10</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.10</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.41</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.28</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="46%" valign=bottom> <p><font size=2 face="Times New Roman">Change in amortization expense</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">0.03</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">0.08</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Adjusted income (loss) per share</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.10</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.07</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.41</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.20</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="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Diluted income (loss) per share, as reported</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.10</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.10</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.40</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.28</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="46%" valign=bottom> <p><font size=2 face="Times New Roman">Change in amortization expense</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">0.03</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="10%" 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">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">0.08</font></p> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Adjusted diluted income (loss) per share</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.10</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.07</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">0.40</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(0.20</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="46%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <br>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">SFAS&nbsp;142 requires that goodwill be tested for impairment annually, or more frequently if circumstances indicate potential impairment, by comparing the fair value of the goodwill
to its carrying amount.&#160; Such testing requires, as an initial step, that each of the Company&#146;s reporting units, as defined in SFAS&nbsp;142, be identified and that the Company&#146;s assets and liabilities, including the existing goodwill
and intangible assets, be assigned to those reporting units.&#160; The Company has determined that it has a single reporting unit which consists of the distribution of replacement parts, accessories and supplies for recreational vehicles and
boats.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman">6</font></p> <BR>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align=center><font size=2 color=black face="Times New Roman"><b>THE COAST DISTRIBUTION SYSTEM, INC. AND SUBSIDIARIES</b></font></p> <p align=center><font size=2 color=black face="Times New Roman"><b>NOTES TO
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The Company completed the first step of the transitional impairment test required by SFAS&nbsp;142 during the quarter ended June&nbsp;30, 2002.&#160; This required the Company to
assess the fair value of the Company and compare that value to its stockholders&#146; equity.&#160; In determining fair value, the Company considered the guidance in SFAS&nbsp;142, including the Company&#146;s market capitalization, control
premiums, discounted cash flows and other indicators of fair value.&#160; Based on this analysis, there is an indication that some or possibly all of the recorded goodwill, which totaled $6,280,000 as of January&nbsp;1, 2002, may be
impaired.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p>&nbsp;</p> </td>
<td width="96%" valign=top> <p>&nbsp;</p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman">The Company is in the process of completing the second step of the transitional impairment analysis.&#160; This step requires the Company, using January 1, 2002 amounts, to compare
the implied fair value of the recorded goodwill, determined in a manner similar to a purchase price allocation in a business combination, to the carrying amount of the goodwill.&#160; Any excess of the carrying value of the goodwill over its implied
fair value will be recognized as a cumulative effect of a change in accounting principle, and the amount of that impairment will be recorded as a non-cash charge in the Company&#146;s statements of operations.&#160; Such a charge would not affect
the Company&#146;s tangible net worth and it is not expected to adversely affect its business operations or cash flows.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">7.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman"><u>Accounts Receivable</u>.&#160; The majority of the Company&#146;s accounts receivable are due from RV dealers, recreational vehicle supply stores and independent boat
dealers.&#160; Credit is extended to a customer based on evaluation of its financial condition and, generally, collateral is not required.&#160; The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability
of customers to make required payments.&#160; Management regularly evaluates the allowance for doubtful accounts.&#160; Estimated losses are based on the aging of accounts receivable balances, a review of significant past due accounts, and our
historical write-off experience, net of recoveries.&#160; If the financial condition of our customers were to deteriorate, whether due to deteriorating economic conditions generally or otherwise, resulting in an impairment of their ability to make
payments, additional allowances would be required.</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" valign=top> <p><font size=2 face="Times New Roman">8.</font></p> </td>
<td width="96%" valign=top> <p><font size=2 face="Times New Roman"><u>Comprehensive Income (Loss)</u>.</font></p> </td> </tr> </table> <br>
<table align=center border=0 cellspacing=0 cellpadding=0 width="90%">
<tr>
<td width="46%" colspan="2" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Three Months Ended<br> September 30, 2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Nine Months Ended<br> September 30,</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="2" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="24%" colspan="5" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="2" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="2" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="2" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="50%" colspan="11" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>(in thousands)</b></font></p> </td>
<td width="1%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="46%" colspan="2" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Net income (loss)</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">452</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(454</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,780</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,237</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="46%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">Change&nbsp;in&nbsp;accumulated&nbsp;foreign&nbsp;currency&nbsp;translation<br> &nbsp;&nbsp; adjustment:</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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(194</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="10%" 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="10%" valign=bottom> <p align=right><font size=2 face="Times New Roman">(254</font></p> </td>
<td width="1%" valign=bottom> <p><font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="46%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="1%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">Comprehensive income (loss)</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">229</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">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(648</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign=bottom bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">1,793</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="10%" valign=bottom bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">(1,491</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="2%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" valign=bottom> <p><Font size="2" face="Times New Roman">&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> <hr size=3 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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 align=center> </td>
<td width="10%" valign=bottom> <hr size=3 width="100%" noshade color=black align=center> </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">7</font></p> <BR>

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<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="9%" valign=top> <p><font size=2 face="Times New Roman"><b>ITEM&nbsp;2.</b></font></p> </td>
<td width="91%" 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> </table> <p><font size=2 face="Times New Roman"><b>ACCOUNTING
POLICIES AND ESTIMATES</b></font></p> <p><font size=2 face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General</i></font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with accounting principles generally accepted in the United States of America (&#147;GAAP&#148;), we record assets at the lower of cost or fair
value.&#160; In determining the carrying value of such assets as accounts receivable, inventories, deferred income taxes and goodwill, we must make judgments, estimates and assumptions regarding future events and circumstances that could affect the
value of those assets.&#160; These include assumptions about such matters as future economic conditions that will affect our ability to collect our accounts receivable or sell our inventories in future periods.&#160; Those estimates and assumptions
are based on current information available to us at the time they are made.&#160; If there are material changes in events or circumstances from those anticipated at the time we made our estimates and assumptions, GAAP will require us to adjust the
earlier estimates that are affected by those changes.&#160; Any downward adjustments are commonly referred to as &#147;write-downs&#148; of the assets involved.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, decisions of when adjustments of this nature should be made also sometimes require an assessment or prediction of the effects on financial performance,
or the duration, of new events or changes in circumstances.&#160; It is not uncommon for it to take some time, after the occurrence of an event or the onset of changes in economic circumstances, for their effects to become recognizable or
determinable.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is our practice to establish reserves or allowances against which we are able to charge any downward adjustments or
&#147;write-downs&#148; in the carrying value of our assets.&#160; Examples include reserves or allowances established for uncollectible accounts receivable (sometimes referred to as &#147;bad debt reserves&#148;) and reserves for inventory
obsolescence. &#160;Such reserves or allowances are established, and such write-downs are effectuated, by charges to income or increases in expense in our statement of operations in the periods when those reserves or allowances are established or
those write-downs are recorded. With respect to other assets we write down their fair market value directly, by a charge against income, upon determining that, due to changes in events or circumstances, the amounts at which they are carried on our
books exceed their current fair market value.&#160; As a result, our judgments, estimates and assumptions about future events and circumstances can and will affect not only the amounts at which we record these assets on our balance sheet, but also
our results of operations.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under GAAP, most businesses also must make estimates or judgments regarding the amounts at which and the periods
during which sales are recorded.&#160; Those estimates and judgments will depend on such factors as the steps or actions that a business must take to complete a sale of products to or the provision of services for a customer and the circumstances
under which a customer would be entitled to return the products or reject or adjust the payment for services.&#160; Additionally, in the case of a company that grants its customers contractual rights to return products sold to them, GAAP may require
that a reserve or allowance be established for product returns by means of a reduction in the amount at which sales are recorded, primarily based on the nature, extensiveness and duration of those rights and its historical return
experience.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In making our estimates and assumptions we follow GAAP and accounting practices applicable to our business that we believe,
after consultation with our independent public accountants, will enable us to make fair and consistent estimates of the fair value of those assets and establish adequate reserves or allowances.&#160; Additionally, as part of the audit of our annual
financial statements, our independent public accountants examine, on a test basis, the evidence on which we rely, and assess the accounting principles that we use and the significant estimates that we make, in determining the amounts at which we
propose to record our assets and establish our reserves in our financial statements.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below is a summary of the accounting
policies that we believe are material to an understanding of our financial condition and results of operations that are discussed below.</font></p> <p align=center><font size=2 face="Times New Roman">8</font></p> <BR>

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  <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Revenue Recognition and the Allowance for Product Returns</i>.&#160; We recognize revenue from the sale of a
product upon its shipment to the customer.&#160; We provide our customers with a limited right of return.&#160; We establish an allowance for potential returns which reduces the amounts of our reported sales, based on historical experience with
returns of like products and current economic data, which can affect the level at which customers submit product returns.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Accounts
Receivable and the Allowance for Doubtful Accounts.</i>&#160; In the normal course of business we extend 30 day payment terms to our customers and, due to the seasonality of our business, during late fall and winter we grant extended payment terms
to those of our customers that have good credit records.&#160; We regularly review our customers&#146; accounts and estimate the amount of and establish an allowance for uncollectible amounts or &#147;receivables.&#148;&#160; The amount of the
allowance is based on several factors, including the age of unpaid amounts, a review of significant past due accounts and current economic trends, which affect the ability of customers to keep their accounts current.&#160; Estimates of uncollectible
amounts are reviewed each period, and changes are recorded in the period they become known.&#160; For example, if the financial condition of the Company&#146;s customers or economic conditions were to deteriorate, adversely affecting their ability
to make payments, increases in the allowance may be required.&#160; Additionally, charges against the allowance may necessitate that additions be made from time to time to replenish the reserve.&#160; Since the allowance is created by recording a
charge against income, an increase in or additions to the allowance will cause a decline in our operating results in the period when the increase or additions are made.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Reserve for Excess and Obsolete Inventory</i>.&#160; Inventories are valued at the lower of cost (first-in, first-out) or market and are reduced by charging an
allowance established for excess and slowing moving or obsolete inventories.&#160; The amount of the allowance is determined on the basis of historical experience with different product lines, estimates concerning future economic conditions and
estimates of future sales.&#160; If there is an economic downturn or a decline in sales, causing inventories of some product lines to accumulate, it may become necessary to increase the allowance.&#160; Other factors that can require increases in
the allowance or inventory write downs are reductions in pricing or introduction of new or competitive products by manufacturers; however, due to the relative maturity of the markets in which the Company operates, usually these are not significant
factors.&#160; Increases in this allowance also will cause a decline in operating results as such increases are effectuated by charges against income.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Allowance for Deferred Income Taxes</i>.&#160; We record as a &#147;deferred tax asset&#148; on our balance sheet tax loss and tax credit carryforwards, to the
extent they are available to offset or reduce our future income tax liability.&#160; At September&nbsp;30, 2002, the amount of that asset totaled approximately $2.9 million, net of a valuation allowance of $120,000.&#160; Under applicable federal
and state income tax laws and regulations, deferred tax assets relating to tax loss and tax credit carryforwards will expire if not used within specified time periods.&#160; Accordingly, the ability to use such assets depends on generating taxable
income during those time periods.&#160; As a result, we establish a valuation allowance, which is applied as a reduction of the gross amount of that deferred tax asset, to take account of the possibility that we will not generate sufficient taxable
income in the future to fully utilize this asset.&#160; In determining the amount of that allowance, we consider current operating and economic trends as they may affect the amounts and timing of future taxable income that we currently believe we
can generate.&#160; Currently, available evidence leads us to believe that it is more likely than not that we will be able to utilize the deferred tax asset that is recorded in our financial statements.&#160; However, if due to future events or
circumstances, such as an economic downturn that would adversely affect our operating results, we subsequently come to a different conclusion regarding our future taxable income and, hence, our ability to fully utilize this asset, we would increase
the allowance and thereby reduce the amount at which we record the deferred tax asset.&#160; That reduction would be effectuated by an increase in the provision (or a reduction in the credit) for income taxes in our statement of operations, which
would have the effect of causing a decline in our operating results.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Long-Lived Assets</i>.&#160; Until the current fiscal year,
long-lived assets such as goodwill and intangible assets were reviewed for impairment when events or circumstances indicated that the carrying value might be not be recoverable.&#160; Estimated undiscounted&nbsp;expected future cash flows were used
to determine if an asset was impaired, in which case the carrying value of the asset would be reduced to fair value.&#160; Any resulting impairment would be recorded as a charge against income in the period in which the impairment was
recorded.&#160; Beginning with our current fiscal year ending December&nbsp;31, 2002, however, we are required to assess our goodwill for impairment based on the new standards established by SFAS No.&nbsp;142.&#160; See Note&nbsp;6 to our Condensed
Consolidated Financial Statements included elsewhere in this Report.&#160; We will not be able to determine the full effect of these new standards on our financial position or our results of</font></p> <p align=center><font size=2
face="Times New Roman">9</font></p> <BR>

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  <p><font size=2 face="Times New Roman">operations until we are able to complete our impairment analysis using the new standards.&#160; Under previously applicable accounting standards, our assessment of goodwill
indicated that no impairment existed as of December&nbsp;31, 2001.&#160; Based on the analysis that we have made to date under the new standards there is an indication that goodwill is impaired and, as a result, it is likely that we will be required
to record a non-cash charge to our earnings in fiscal 2002, as a cumulative effect of a change in accounting principle, the amount of which is not presently determinable, but which could be as much as $6,280,000. Such a charge would reduce reported
income (or increase any loss) in the fourth quarter of 2002; however, because it would be a non-cash charge, it would not affect the Compan<font face="Times New Roman, Times, serif">y</font></font><font face="Times New Roman, Times, serif"
size="2">&#146;s tangible net worth and is not expected to affect the Company&#146;s business or financial position. </font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Foreign Currency
Translation</i>.&#160; The financial position and results of operations of our foreign subsidiaries are measured using local currency as the functional currency.&#160; Assets and liabilities of each foreign subsidiary are translated into U.S.
dollars at the rate of exchange in effect at the end of each reporting period.&#160; Revenues and expenses are translated into US dollars at the average exchange rate for the reporting period.&#160; Foreign currency translation gains and losses not
impacting cash flows are credited to or charged against other comprehensive income (loss).&#160; Foreign currency translation gains and losses arising from cash transactions are credited to or charged against current earnings.</font></p> <p><font
size=2 face="Times New Roman"><b>RESULTS OF OPERATIONS</b></font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Factors Generally Affecting Sales of RV and Boating Products</i></font></p>
<p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that we are one of the largest wholesale distributor of replacement parts, accessories and supplies for recreational vehicles
(&#147;RVs&#148;), and one of the largest distributors of replacement parts, accessories and supplies for boats, in North America.&#160; Our sales are made to retail parts and supplies stores, service and repair establishments and new and used RV
and boat dealers (&#147;After-Market Customers&#148;).&#160; Our sales are affected primarily by (i)&nbsp;usage of RVs and boats which affects the consumers&#146; needs for and purchases of replacement parts, repair services and supplies, and
(ii)&nbsp;sales of new RVs and boats, because consumers often &#147;accessorize&#148; their RVs and boats at the time of purchase.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
usage and the purchase, by consumers, of RVs and boats depend, in large measure, upon the extent of discretionary income available to consumers and their confidence about economic conditions.&#160; Weather conditions also affect the usage of RVs and
boats.&#160; Additionally, shortages in the supply and increases in the prices of gasoline also can lead to declines in the usage and purchases of RVs and boats.&#160; As a result, our sales and operating results can be, and in the past have been,
adversely affected by recessionary economic conditions, increases in interest rates, which affect the availability and affordability of financing for purchases of RVs and boats, increases in gasoline prices which adversely affect the costs of using
RVs and boats, and unusually adverse weather conditions.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Net Sales</i>.&#160; Net sales increased by $3,628,000 or 10.1% in the third
quarter, and by $8,582,000 or 7.5% in the nine months, ended September&nbsp;30, 2002 as compared to the corresponding periods in 2001.&#160; We believe that these increases reflect an improvement in consumer confidence, increased purchases and usage
of RVs and, therefore, increased purchases of our products, and our progress in implementing our inventory management and deployment program, which has enabled us to improve our service levels to our customers.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Gross Margin</i>.&#160; Our gross margin increased to 16.7% of net sales in the three months, and 17.0% in the nine months, ended September&nbsp;30, 2002 from
12.3% and 14.5%, respectively, in the comparable periods of 2001.&#160; These increases were due to (i)&nbsp;an overall reduction in the prices that we paid for products purchased from our suppliers due to volume purchases, (ii)&nbsp;a reduction in
freight-in costs, net of supplier allowances, associated with receiving product from our suppliers and redistributing it to our regional distribution centers, (iii)&nbsp;a reduction in warehouse labor costs as a percentage of net sales due to their
relatively fixed nature of such costs as compared to our net sales, and (iv)&nbsp;a reduction in shipping costs as a percentage of net sales due to improved fill rates to our customers.&#160; These reductions are largely attributable to our
inventory management and deployment system.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Selling, General and Administrative Expenses</i>.&#160; Our selling, general and
administrative (&#147;SG&amp;A&#148;) expenses decreased in the quarter and nine months ended September&nbsp;30, 2002 by $100,000, or 1.8%, and $1,156,000, or 6.6%, respectively, as compared to the corresponding periods of 2001.&#160; These
decreases were due primarily to our continuing cost containment efforts, including reductions in labor costs that resulted from reductions in both the</font></p> <p align=center><font size=2 face="Times New Roman">10</font></p> <BR>

<p Style='page-break-before:always'>
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  <p><font size=2 face="Times New Roman">number of employees and in salaries.&#160; Also contributing to the reduction in SG&amp;A expenses was a reduction in marketing and computer expenses and the elimination of the
amortization of goodwill resulting from the implementation of SFAS&nbsp;142.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Operating Income</i>.&#160; Operating income increased by
$2,312,000 in the quarter, and by $5,413,000 in the nine months, ended September&nbsp;30, 2002, as compared to the respective corresponding periods of 2001, due to the combined effects of the increases in sales and gross margin and the reductions in
SG&amp;A expenses.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Interest Expense</i>.&#160; Interest expense declined by $194,000, or 36%, and by $783,000, or 41%, in the quarter
and nine months ended September&nbsp;30, 2002, from the respective corresponding periods of 2001.&#160; These decreases were the result of declines in the average rate of interest charged due to declining market rates of interest during 2001 and
decreases in average long-term borrowings outstanding during the quarter and nine months ended September&nbsp;30, 2002, made possible by increases in internally generated cash flows.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Income Taxes</i>.&#160; Our effective tax rate is affected by the amount of our expenses that are not deductible for income tax purposes and by varying tax rates
on income generated by our foreign subsidiaries.&#160; </font></p> <p><font size=2 face="Times New Roman"><b>Liquidity and Capital Resources</b></font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We finance our working capital requirements for our operations primarily with borrowings under a long-term revolving bank credit facility and internally generated
funds.&#160; Under the terms of the revolving credit facility, which expires in May 2005, we may borrow up to the lesser of (i)&nbsp;$40,000,000 with seasonal reductions ranging from $30,000,000 to $35,000,000 between August&nbsp;1 and
February&nbsp;28 of each year, or (ii)&nbsp;an amount equal to 80% of eligible accounts receivable and between 50% to 55% of eligible inventory.&#160; Interest on the revolving credit facility is payable at the bank&#146;s prime rate plus 1.25% or,
at the Company&#146;s option but subject to certain limitations, at the bank&#146;s LIBOR rate, plus 3.0 percent.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At October&nbsp;31, 2002,
outstanding bank borrowings totaled $22,400,000.&#160; Our bank borrowings are secured by substantially all of our assets, and rank senior in priority to other indebtedness of the Company.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We generally use cash for, rather than generate cash from, operations in the first half of the year, because we build inventories, and accounts receivables increase,
as our customers begin increasing their product purchases for the spring and summer selling seasons. &#147;Seasonality and Inflation&#148; below.&#160;&#160; However, during the current fiscal year we continued to increase inventories in the third
quarter as well, in response to increased product demand.&#160; We also were able to use internally generated cash flow to speed up the payment of our accounts payable and thereby take advantage of supplier discounts. </font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although our sales increased 10% during the quarter ended September 30, 2002 as compared to the same period of 2001, our accounts receivable balance declined by
$1,379,000 or 9.5% at September 30, 2002&#160; as compared to our accounts receivable balance at September 30, 2001.&#160; This decline was due primarily to an acceleration in our accounts receivable collections.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of 2001 we sold our Portland, Oregon distribution facility, which generated $2,669,000 of cash for us, net of selling expenses.&#160; We have
leased a smaller facility in nearby Wilsonville, Oregon.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures, primarily for computer enhancements, telephone and warehouse
equipment, were $1,056,000 in the nine months ended September 30, 2002 and $366,000 in the corresponding nine months of 2001.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We lease the
majority of our facilities and certain of our equipment under non-cancelable operating leases.&#160; Our future lease commitments are described in Note&nbsp;4 of Notes to the Company&#146;s Interim Condensed Consolidated Financial Statements
included elsewhere in this report.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that borrowings under our revolving bank credit facility and internally generated funds will
be sufficient to fund our cash requirements for at least the next twelve months and we do not currently anticipate any material changes in the cash requirements of our business or in the sources of funds for our operations.</font></p> <p
align=center><font size=2 face="Times New Roman">11</font></p> <BR>

<p Style='page-break-before:always'>
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  <p><font size=2 face="Times New Roman"><b>Seasonality and Inflation</b></font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Seasonality</i>.&#160; Sales of
recreational vehicle and boating parts, supplies and accessories are seasonal.&#160; We have significantly higher sales during the six-month period from April through September than we do during the remainder of the year.&#160; Because a substantial
portion of our expenses are fixed, operating income declines and the Company sometimes incurs losses and must rely more heavily on borrowings to fund operating requirements in the months when sales are lower.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Inflation</i>.&#160; Generally, we have been able to pass inflationary price increases on to our customers. However, inflation also may cause or may be accompanied
by increases in gasoline prices and interest rates.&#160; Such increases, or even the prospect of increases in the price or shortages in the supply of gasoline, can adversely affect the purchase and usage of RVs and boats, which can result in a
decline in the demand for our products.</font></p> <hr size=2 width="21%" noshade color=black align=center> <p><font size=2 face="Times New Roman"><b>Forward Looking Information and Risks and Uncertainties Regarding Future Financial
Performance</b></font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Report contains statements regarding our expectations and beliefs about our future financial performance (including
forecasts and statements concerning business trends and future profitability) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.&#160; Readers of this Report are cautioned not to place undue
reliance on such forward-looking statements, or to rely on historical operating results, to predict future financial performance, because actual results in the future may differ materially, depending on the effect of a number of risks and
uncertainties.&#160; Those risks and uncertainties include, but are not limited to: the possibility of increased price competition within the Company&#146;s distribution channels; possible changes in economic conditions, prevailing interest rates or
gasoline prices, or the occurrence of unusually severe weather conditions, that can affect both the purchase and usage of RVs and boats and which, in turn, affects purchases by consumers of the products that the Company sells; the possibility that
economic conditions will not improve significantly or that interest rates will increase, causing consumers to reduce discretionary spending which can result in reduced sales; the potential for increases in gasoline prices due to, among other things,
political conditions in the Middle East, which could reduce usage of RV&#146;s and pleasure boats and hence the purchase of the products we distribute; the possibility of changes in the structure of relationships between manufacturers, distributors
and retailers within our industry, which could create supply problems and operating costs or lead to</font></p> <p align=center><font size=2 face="Times New Roman">12</font></p> <BR>

<p Style='page-break-before:always'>
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  <p><font size=2 face="Times New Roman">increased competition; and the possibility of a West Coast dockworkers strike or lockout that could hurt sales or increase shipping costs of products obtained from Asian
suppliers. For information concerning some of these and other factors and risks, see the foregoing discussion in the section of this Report titled, &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operation&#148;
and our Annual Report on Form 10-K for the fiscal year ended December&nbsp;31, 2001.&#160; </font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company undertakes no obligation to update
or revise the forward-looking statements, whether as a result of new information, future events or otherwise.</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="9%" valign=top> <p><font size=2 face="Times New Roman"><b>ITEM 3.</b></font></p> </td>
<td width="91%" valign=top> <p><font size=2 face="Times New Roman"><b>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></font></p> </td> </tr> </table> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our exposure to market risk with respect to financial instruments is primarily related to changes in interest rates with respect to borrowing activities, which may
adversely affect our financial position, results of operations and cash flows. The fair value of borrowings under our revolving credit facility approximate the carrying value of such obligations.&#160; As of September&nbsp;30, 2002, we had
outstanding $24.2 million under our revolving credit facility.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To a lesser degree, we are exposed to market risk from foreign currency
fluctuations associated with our Canadian operations and our Canadian currency denominated debt.&#160; We do not use financial instruments for trading or other speculative purposes and are not party to any derivative financial
instruments.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We sometimes enter into forward exchange agreements to reduce the effect of foreign currency fluctuations on a portion of our
inventory purchases in Canada for our Canadian operations.&#160; The gains and losses on these contracts are reflected in earnings in the period during which the transactions being hedged are recognized.&#160; We believe that these agreements do not
subject us to significant market risk from exchange rate movements because the agreements offset gains and losses on the balances and transactions being hedged.&#160; As of September&nbsp;30, 2002, there were no such agreements
outstanding.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately 12% of our debt is denominated in Canadian currency, which also exposes us to market risk associated with
exchange rate movements.&#160; Historically, we have not used derivative financial instruments to manage our exposure to foreign currency rate fluctuations since the market risk associated with our foreign currency denominated debt has not been
considered significant</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="9%" valign=top> <p><font size=2 face="Times New Roman"><b>ITEM 4.</b></font></p> </td>
<td width="91%" valign=top> <p><font size=2 face="Times New Roman"><b>CONTROLS AND PROCEDURES</b></font></p> </td> </tr> </table> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within the past 90
days we carried out an evaluation, under the supervision of the Company&#146;s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company&#146;s disclosure controls and procedures.&#160; Based on that evaluation, the
Chief Executive Officer and Chief Financial Officer have each concluded that those controls and procedures were effective in making known to them, on a timely basis, the material information needed for the preparation of this Report on Form
10-Q.&#160; There were no significant changes in the Company&#146;s internal controls or in other factors that could significantly affect those internal controls since the date of their evaluation nor did we find any significant deficiencies or
material weaknesses that would have required corrective actions to be taken with respect to those controls.</font></p> <p align=center><font size=2 face="Times New Roman">13</font></p> <BR>

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<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align=center><font size=2 face="Times New Roman"><b>PART II&#151;OTHER INFORMATION</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="9%" valign=top> <p><font size=2 face="Times New Roman"><b>ITEM 4</b></font></p> </td>
<td width="91%" valign=top> <p><font size=2 face="Times New Roman"><b>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</b></font></p> </td> </tr> </table> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Annual Meeting of Stockholders was held on August 15, 2002.&#160; At the Meeting, stockholders voted on (i) the election of one Class II director to serve for a
term of three years, and (ii) a proposed amendment to the Company&#146;s Certificate of Incorporation to reduce the authorized number of shares of Common Stock from 20 million shares to 10 million shares and the authorized number of shares of
Preferred Stock from 5 million shares to 2 million shares.</font></p> <p><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Election of Directors</i>. &nbsp;The candidate nominated by the Board of
Directors, John W. Casey, was the only person nominated for election as a Class II Director at the Meeting and his election was uncontested. Set forth below are the number of votes cast for his election and the number withheld. As the election was
uncontested, there were no broker non-votes.</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="80%">
<tr>
<td width="18%" valign=bottom> <p align="center"><font size=1 face="Times New Roman"><b>Nominee</b></font></p> </td>
<td width="3%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Votes &#147;For&#148;</b></font></p> </td>
<td width="3%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Votes &#147;Withheld&#148;</b></font></p> </td>
<td width="2%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="18%" valign=bottom height="23"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="3%" valign=bottom height="23"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="2" valign=bottom height="23"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="3%" valign=bottom height="23"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="2" valign=bottom height="23"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom height="23"> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="18%" valign=bottom bgcolor="#cceeff"> <p align="center"><font size=2 face="Times New Roman">John W. Casey</font></p> </td>
<td width="3%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td valign=bottom bgcolor="#cceeff" colspan="2"> <p align="center"><font size=2 face="Times New Roman">3,862,142</font></p> </td>
<td width="3%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign=bottom bgcolor="#cceeff"> <p align="center"><font size=2 face="Times New Roman">218,753</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width=315></td>
<td width=19></td>
<td width=10></td>
<td width=95></td>
<td width=19></td>
<td width=10></td>
<td width=95></td>
<td width=14></td> </tr> </table> <p><font size=2 face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>&nbsp;<i>Reduction in the Authorized Number of Shares</i>. &nbsp;The amendment to the Certificate of Incorporation
reducing the authorized number of the Company&#146;s shares to 10 million shares of Common Stock and 2 million shares of Preferred Stock was approved by the following vote of the Company's stockholders:</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="80%">
<tr>
<td width="18%" valign=bottom> <p align="center"><font size=1 face="Times New Roman"><b>Votes &#147;For&#148;</b></font></p> </td>
<td width="3%" valign=bottom> <p align=center><font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="3" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Votes &#147;Against&#148;</b></font></p> </td>
<td width="3%" valign=bottom> <p align=center><font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="2" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Votes &#147;Abstaining&#148;</b></font></p> </td>
<td width="3%" valign=bottom>&nbsp;</td>
<td width="18%" valign=bottom> <p align=center><font size="2" face="Times New Roman"> <font size="1"><b>Broker Non-Votes&nbsp;</b></font></font></p> </td> </tr>
<tr>
<td width="18%" valign=bottom height="21"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="3%" valign=bottom height="21"> <p align=center><font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="3" valign=bottom height="21"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="3%" valign=bottom height="21"> <p align=center><font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="18%" colspan="2" valign=bottom height="21"> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="2%" valign=bottom height="21">&nbsp;</td>
<td width="2%" valign=bottom height="21"> <hr size=1 width="100%" noshade color=black align=center> </td> </tr>
<tr>
<td width="18%" valign=bottom bgcolor="#cceeff"> <p align="center"><font size=2 face="Times New Roman">2,435,426</font></p> </td>
<td width="3%" valign=bottom bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td valign=bottom bgcolor="#cceeff" colspan="3"> <p align="center"><font size=2 face="Times New Roman">12,584</font></p> </td>
<td width="3%" valign=bottom bgcolor="#cceeff"> <p><font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign=bottom bgcolor="#cceeff"> <p align="center"><font size=2 face="Times New Roman">8,969</font></p> </td>
<td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
<td width="2%" valign=bottom bgcolor="#cceeff"> <p align="center"><font size="2" face="Times New Roman">&nbsp;1,623,916</font></p> </td> </tr>
<tr>
<td width=315></td>
<td width=19></td>
<td width=10></td>
<td width=10></td>
<td width=95></td>
<td width=19></td>
<td width=10></td>
<td width=95></td>
<td width=14></td>
<td width=14></td> </tr> </table> <p>&nbsp;</p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="9%" colspan="3" valign=top> <p><font size=2 face="Times New Roman"><b>ITEM 6.</b></font></p> </td>
<td width="90%" colspan="4" valign=top> <p><font size=2 face="Times New Roman"><b>EXHIBITS AND REPORTS ON FORM 8-K AND EXHIBITS</b></font></p> </td>
<td width="0%">&nbsp;</td> </tr>
<tr>
<td width="9%" colspan="3" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="90%" colspan="4" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="0%">&nbsp;</td> </tr>
<tr>
<td width="3%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">(a)</font></p> </td>
<td width="87%" colspan="4" valign=top> <p><font size=2 face="Times New Roman"><u>Exhibits</u>.</font></p> </td> </tr>
<tr>
<td width="100%" colspan="8" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="14%" colspan="5" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="12%" valign=top> <p><font size=2 face="Times New Roman">Exhibit 99.1</font></p> </td>
<td width="73%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></p> </td> </tr>
<tr>
<td width="14%" colspan="5" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="12%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="73%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="14%" colspan="5" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="12%" valign=top> <p><font size=2 face="Times New Roman">Exhibit 99.2</font></p> </td>
<td width="73%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></p> </td> </tr>
<tr>
<td width="100%" colspan="8" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" colspan="3" valign=top> <p><font size=2 face="Times New Roman">(b)</font></p> </td>
<td width="87%" colspan="4" valign=top> <p><font size=2 face="Times New Roman"><u>Reports on Form 8-K</u>.</font></p> </td> </tr>
<tr>
<td width="100%" colspan="8" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="14%" colspan="5" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="85%" colspan="3" valign=top> <p><font size=2 face="Times New Roman">None</font></p> </td> </tr>
<tr>
<td width=45></td>
<td width=2></td>
<td width=23></td>
<td width=17></td>
<td width=20></td>
<td width=87></td>
<td width=526></td>
<td width=1></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">14</font></p> <BR>

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  <p align=center><font size=2 face="Times New Roman"><b>SIGNATURES</b></font></p> <p><font size=2 face="Times New Roman">&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>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman">THE COAST DISTRIBUTION SYSTEM, INC.</font></p> </td> </tr>
<tr>
<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="4%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="37%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="58%" valign=bottom> <p><font size=2 face="Times New Roman">Dated:&#160; November 12, 2002</font></p> </td>
<td width="4%" valign=bottom> <p><font size=2 face="Times New Roman">By:</font></p> </td>
<td width="37%" valign=bottom> <p align=center><font size=2 face="Times New Roman">/s/&nbsp;&nbsp;SANDRA A. KNELL</font></p> </td> </tr>
<tr>
<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="4%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="37%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td> </tr>
<tr>
<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="4%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="37%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Sandra A. Knell<br> Executive Vice President and <br> Chief Financial Officer</b></font></p> </td> </tr> </table> <p align=center><font size=2
face="Times New Roman">S-1</font></p> <BR>

<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>CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER<br> UNDER<br> SECTION 302 OF THE SARBANES-OXLEY ACT</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="100%" colspan="3" valign=top> <p><font size=2 face="Times New Roman">I, Thomas R. McGuire, Chief Executive Officer of The Coast Distribution System, Inc. certify that:</font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">1.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">I have reviewed this quarterly report on Form 10-Q of The Coast Distribution System, Inc.;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">2.</font></p> </td>
<td width="93%" colspan="2" 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="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">3.</font></p> </td>
<td width="93%" colspan="2" 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="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">4.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rules 13a-14 and
15d-14 of the Exchange Act) for the registrant and we have:</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><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="88%" 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 us by
others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><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="88%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><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="88%" 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="6%" valign=top> <p align=center><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="88%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><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="88%" valign=top> <p><font size=2 face="Times New Roman">presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></p>
</td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><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="88%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">5.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant&#146;s auditors and the audit committee of
registrant&#146;s board of directors (or persons performing the equivalent function):</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><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="88%" 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="6%" valign=top> <p align=center><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="88%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><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="88%" 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="6%" valign=top> <p align=center><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="88%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">6.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">The registrant&#146;s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></p> </td> </tr> </table>
<p><font size=2 face="Times New Roman">&nbsp;</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="61%" valign=bottom> <p><font size=2 face="Times New Roman">Date: November 12, 2002</font></p> </td>
<td width="27%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="27%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="10%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="27%" valign=bottom> <p align=center><font size=2 face="Times New Roman">/s/&nbsp;&nbsp;THOMAS R. MCGUIRE</font></p> </td>
<td width="10%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="27%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="10%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="27%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Thomas R. McGuire<br> Chief Executive Officer</b></font></p> </td>
<td width="10%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman">S-2</font></p> <BR>

<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>CERTIFICATIONS OF CHIEF FINANCIAL OFFICER<br> UNDER<br> SECTION 302 OF THE SARBANES-OXLEY ACT</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="100%" colspan="3" valign=top> <p><font size=2 face="Times New Roman">I, Sandra A. Knell, Chief Financial Officer of The Coast Distribution System, Inc., certify that:</font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">1.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">I have reviewed this quarterly report on Form 10-Q of The Coast Distribution System, Inc.;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">2.</font></p> </td>
<td width="93%" colspan="2" 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="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">3.</font></p> </td>
<td width="93%" colspan="2" 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="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">4.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rules 13a-14 and
15d-14 of the Exchange Act) for the registrant and we have:</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><font size=2 face="Times New Roman">a)</font></p> </td>
<td width="86%" 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 us by
others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="86%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><font size=2 face="Times New Roman">b)</font></p> </td>
<td width="86%" 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="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="86%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><font size=2 face="Times New Roman">c)</font></p> </td>
<td width="86%" valign=top> <p><font size=2 face="Times New Roman">presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></p>
</td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="86%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">5.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant&#146;s auditors and the audit committee of
registrant&#146;s board of directors (or persons performing the equivalent function):</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><font size=2 face="Times New Roman">a)</font></p> </td>
<td width="86%" 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="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="86%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><font size=2 face="Times New Roman">b)</font></p> </td>
<td width="86%" 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="6%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="6%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="86%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="6%" valign=top> <p align=center><font size=2 face="Times New Roman">6.</font></p> </td>
<td width="93%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">The registrant&#146;s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></p> </td> </tr> </table>
<p align=center><font size=2 face="Times New Roman">&nbsp;</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="51%" valign=bottom> <p><font size=2 face="Times New Roman">Date:&#160; November 12, 2002</font></p> </td>
<td width="48%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="51%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="48%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="31%" valign=bottom> <p align=center><font size=2 face="Times New Roman">/s/&nbsp;&nbsp;SANDRA A. KNELL</font></p> </td>
<td width="9%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="31%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="9%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="31%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Sandra A. Knell<br> Chief Financial Officer</b></font></p> </td>
<td width="9%" valign=bottom> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="51%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="48%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width=368></td>
<td width=59></td>
<td width=227></td>
<td width=67></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">S-3</font></p> <BR>

<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>Index to Exhibits</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="12%" valign=top> <p><font size=1 face="Times New Roman"><b>Exhibit&nbsp;No</b></font></p> </td>
<td width="3%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" valign=top> <p align=center><font size=1 face="Times New Roman"><b>Description of Exhibit</b></font></p> </td> </tr>
<tr>
<td width="12%" valign=top> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="3%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" valign=top> <hr size=1 width="100%" noshade color=black align=center> </td> </tr>
<tr>
<td width="12%" valign=top> <p align=center><font size=2 face="Times New Roman">99.1</font></p> </td>
<td width="3%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="83%" valign=top> <p><font size=2 face="Times New Roman">Certification of Chief Executive Officer pursuant to Section 906 13, of the Sarbanes-Oxley Act of 2002</font></p> </td> </tr>
<tr>
<td width="12%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="3%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="83%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="12%" valign=top> <p align=center><font size=2 face="Times New Roman">99.2</font></p> </td>
<td width="3%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td>
<td width="83%" valign=top> <p><font size=2 face="Times New Roman">Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></p> </td> </tr>
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<td width="12%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="3%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" valign=top> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman">E-1</font></p>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>dex991.htm
<DESCRIPTION>CERTIFICATION OF CEO
<TEXT>
<HTML><HEAD>
<TITLE>Certification of CEO</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <p align=right><font size=2 face="Times New Roman">Exhibit 99.1</font></p> <p><font size=2 face="Times New Roman">THE COAST DISTRIBUTION SYSTEM, INC.</font></p> <p><font size=2 face="Times New Roman">Quarterly Report
on Form 10-Q<br> for the Quarter ended September&nbsp;30, 2002</font></p> <p align=center><font size=2 face="Times New Roman"><b>CERTIFICATION</b></font></p> <p align=center><font size=2 face="Times New Roman">Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, who is the Chief Executive Officer of The Coast Distribution System, Inc. (the
&#147;Company&#148;), hereby certifies that (i)&nbsp;the Quarterly Report on Form&nbsp;10-Q for the quarter ended September&nbsp;30, 2002, as filed by the Company with the Securities and Exchange Commission (the &#147;Quarterly Report&#148;), to
which this Certification is an Exhibit, fully complies with the applicable requirements of Section&nbsp;13(a) and 15(d) of the Exchange Act; and (ii)&nbsp;the information contained in this Quarterly Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
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<td width="61%" valign=bottom> <p><font size=2 face="Times New Roman">Dated:&nbsp;&nbsp;November 12, 2002</font></p> </td>
<td width="38%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign=bottom> <p align=center><font size=2 face="Times New Roman">/s/&nbsp;&nbsp;THOMAS R. MCGUIRE</font></p> </td> </tr>
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<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td> </tr>
<tr>
<td width="61%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Thomas R. McGuire<br> Chairman and Chief Executive Officer</b></font></p> </td> </tr> </table>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>dex992.htm
<DESCRIPTION>CERTIFICATION OF CFO
<TEXT>
<HTML><HEAD>
<TITLE>Certification of CFO</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <p align=right><font size=2 face="Times New Roman">Exhibit 99.2</font></p> <p><font size=2 face="Times New Roman">THE COAST DISTRIBUTION SYSTEM, INC.</font></p> <p><font size=2 face="Times New Roman">Quarterly Report
on Form 10-Q<br> for the Quarter ended September 30, 2002</font></p> <p align=center><font size=2 face="Times New Roman"><b>CERTIFICATION</b></font></p> <p align=center><font size=2 face="Times New Roman">Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, who is the Chief Financial Officer of The Coast Distribution System, Inc. (the
&#147;Company&#148;), hereby certifies that (i)&nbsp;the Quarterly Report on Form 10-Q for the quarter ended September&nbsp;30, 2002, as filed by the Company with the Securities and Exchange Commission (the &#147;Quarterly Report&#148;), to which
this Certification is an Exhibit, fully complies with the applicable requirements of Section 13(a) and 15(d) of the Exchange Act; and (ii)&nbsp;the information contained in this Quarterly Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</font></p>
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<td width="58%" valign=bottom> <p><font size=2 face="Times New Roman">Dated:&nbsp;&nbsp;November 12, 2002</font></p> </td>
<td width="41%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom> <p align=center><font size=2 face="Times New Roman">/s/&nbsp;&nbsp;SANDRA A. KNELL</font></p> </td> </tr>
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<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td> </tr>
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<td width="58%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Sandra A. Knell<br> Executive Vice President and Chief Financial Officer</b></font></p> </td> </tr> </table> <p><font size=2
face="Times New Roman">&nbsp;</font></p>
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