<SUBMISSION>
<ACCESSION-NUMBER>0001200952-05-000865
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>8
<PERIOD>20050930
<FILING-DATE>20051101
<DATE-OF-FILING-DATE-CHANGE>20051101
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AB HOLDING GROUP, INC.
<CIK>0000842289
<ASSIGNED-SIC>3089
<IRS-NUMBER>931143627
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-18259
<FILM-NUMBER>051170776
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2320 SE AG BAG LANE
<CITY>WARRENTON
<STATE>OR
<ZIP>97146
<PHONE>5038611644
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2320 SE AG BAG LANE
<CITY>WARRENTON
<STATE>OR
<ZIP>97146
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AG BAG INTERNATIONAL LTD
<DATE-CHANGED>19920703
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AB HOLDING GROUP INC
<DATE-CHANGED>19901106
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>ab_10q-50930.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>UNITED STATES <BR>SECURITIES AND EXCHANGE
COMMISSION </FONT><BR><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Washington, D.C. 20549 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=3>FORM 10-Q </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Quarterly Report Pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934 </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarterly period ended:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
         September 30, 2005 </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commission file Number:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0-18259  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>AB HOLDING GROUP, INC.</FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Exact name of registrant as specified in its charter)  </FONT></P>



<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT SIZE="2">Delaware</FONT></TH>
     <TH><FONT SIZE="2">93-1143627</FONT></TH>
</TR>
<TR VALIGN="TOP">
     <TD ALIGN=CENTER WIDTH="50%"><FONT SIZE="2">(State or other jurisdiction<BR>of incorporation or organization)</FONT></TD>
     <TD ALIGN=CENTER WIDTH="50%"><FONT SIZE="2">(I.R.S. Employer<BR>Identification No.)</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT SIZE="2">2320 SE Ag-Bag Lane, Warrenton  OR</FONT></TH>
     <TH><FONT SIZE="2">97146</FONT></TH>
</TR>
<TR VALIGN="TOP">
     <TD ALIGN=CENTER WIDTH="50%"><FONT SIZE="2">(Address of principal executive offices)</FONT></TD>
     <TD ALIGN=CENTER WIDTH="50%"><FONT SIZE="2">(Zip Code)</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(503) 861-1812
</B><BR>(Registrant&#146;s telephone number, including area code) </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. </FONT></P>



<TABLE WIDTH="350" ALIGN=CENTER BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN=CENTER><FONT SIZE="2">YES&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;X&nbsp;&nbsp;]</FONT></TD>
     <TD WIDTH="50%" ALIGN=CENTER><FONT SIZE="2">NO&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
</TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) </FONT></P>

<TABLE WIDTH="350" ALIGN=CENTER BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN=CENTER><FONT SIZE="2">YES&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
     <TD WIDTH="50%" ALIGN=CENTER><FONT SIZE="2">NO&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;X&nbsp;&nbsp;]</FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act) </FONT></P>

<TABLE WIDTH="350" ALIGN=CENTER BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN=CENTER><FONT SIZE="2">YES&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
     <TD WIDTH="50%" ALIGN=CENTER><FONT SIZE="2">NO&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;X&nbsp;&nbsp;]</FONT></TD>
</TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registrant has one class of Common Stock with 11,976,991 shares outstanding as of October
14, 2005. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Break" FSL="Workstation" -->
<DIV STYLE="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>PART 1 - FINANCIAL INFORMATION</font></p>

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


<table border="0" cellspacing=0 cellpadding=0 width="300" style='border-collapse:collapse'>
    <tr >
        <td width="100%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1.  Financial Statements.  </font></b></p> </td> </tr></table>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AB HOLDING GROUP, INC.<BR>CONDENSED BALANCE SHEETS</font></p>

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



<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ASSETS </FONT></P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN=Top>
     <TH COLSPAN=3><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=2>September 30<BR>(Unaudited)</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>December 31</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>2005</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>2004</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>2004</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT SIZE=2>Current assets:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=2></FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=2></FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Cash and cash equivalents</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>  2,199,325</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>     89,102</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>  2,982,728</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Accounts receivable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>90</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,435,236</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>632,132</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Inventory</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Prepaid expenses and other</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;current assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>305,537</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>131,074</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Assets held for sale, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>376,635</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,692,103</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,692,103</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Assets of discontinued</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;operations, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>6,928,184</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>2,576,050</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>10,450,162</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>5,438,037</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>Other assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>125,763</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>Total assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>  2,576,050</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2> 10,575,925</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>  5,438,037</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

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

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

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

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


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Continued) </FONT></P>

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

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

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

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

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See Notes to Condensed
Financial Information </FONT></P>

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

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

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AB HOLDING GROUP, INC.</font></p>


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONDENSED BALANCE SHEETS<BR>LIABILITIES
AND SHAREHOLDERS' EQUITY </FONT></P>


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


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN=Top>
     <TH COLSPAN=3><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=2>September 30<BR>(Unaudited)</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>December 31</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>2005</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>2004</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=2>2004</FONT></TH>
     <TH><FONT SIZE=2></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT SIZE=2>Current liabilities:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=2></FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=2></FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Notes payable to bank</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>       -</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>   1,630,483</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>       -</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Current portion of long term</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;debt(on assets held for</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;sale)</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,103,463</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,071,488</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Accounts payable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,280</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,036,526</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>254,406</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Accrued expenses and other</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;current liabilities</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>124,777</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,758,148</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>358,170</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Discontinued operational</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;costs payable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>799,563</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>2,124,662</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Income tax payable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,900</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>2,210</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>2,210</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Liabilities of discontinued</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>76,287</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;Total liabilities</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>927,520</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>5,607,117</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>3,810,936</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>Commitments</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>Shareholders' equity:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Common stock, $.01 par value</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>120,819</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>120,619</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>120,819</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Additional paid-in capital</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>9,547,378</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>9,542,578</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>9,547,378</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Treasury stock</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>(31,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>(31,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>(31,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;Accumulated deficit</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>(7,988,167</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>(4,662,889</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>(8,009,596</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;Total shareholders' equity</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,648,530</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>4,968,808</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>1,627,101</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>Total liabilities and</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;shareholders' equity</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>   2,576,050</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>  10,575,925</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=2>   5,438,037</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

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

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

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

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

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


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See Notes to Condensed
Financial Information </FONT></P>

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

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

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

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=1>AB HOLDING GROUP, INC.</font></p>


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONDENSED STATEMENT OF
SHAREHOLDERS' EQUITY<BR>(Unaudited) </FONT></P>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>                                                                                                </font><font size=1></font><font size=1>   </font></p>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>Common Stock</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>Treasury Stock</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Paid-In</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Accumulated</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1></FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Shares</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Amount</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Shares</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Amount</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Capital</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Deficit</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Total</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=28% ALIGN=LEFT><FONT SIZE=-1>Balance December 31, 2004</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT SIZE=-1>12,081,991</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT SIZE=-1>    120,819</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT SIZE=-1>105,000</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT SIZE=-1>($   31,500</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT SIZE=-1>  9,547,378</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT SIZE=-1> (8,009,596</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT SIZE=-1>  1,627,101</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net loss and comprehensive loss</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(116,191</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(116,191</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Balance March 31, 2005</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>12,081,991</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    120,819</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>105,000</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>($   31,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  9,547,378</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> (8,125,787</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  1,510,910</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net income and comprehensive income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>58,849</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>58,849</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Balance June 30, 2005</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>12,081,991</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    120,819</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>105,000</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>($   31,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  9,547,378</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> (8,066,938</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  1,569,759</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net income and comprehensive income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>78,771</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>78,771</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Balance September 30, 2005</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>12,081,991</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    120,819</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>105,000</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>($   31,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  9,547,378</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> (7,988,167</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  1,648,530</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See Notes to Condensed
Financial Information </FONT></P>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AB HOLDING GROUP, INC.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>Three Months<BR>Ended September 30<BR>(Unaudited)</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=63% ALIGN=LEFT><FONT SIZE=-1>Net rental income</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT SIZE=-1>       6,000</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT SIZE=-1>         -</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Cost on rental income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>35,636</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Gross profit (deficit) from rental operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(29,636</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Administrative expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>63,737</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>(Gain) on sale of assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(129,022</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Income from rental operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>35,649</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Other income (expense):</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;Interest income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>15,051</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;Miscellaneous</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>760</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Income from continuing operations before</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;provision for income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>51,460</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Provision for income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Income from continuing operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>51,460</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;Income (loss) from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>27,311</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(385,222</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net income (loss) and comprehensive income (loss)</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>      78,771</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    (385,222</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Basic and diluted net income(loss) per common share</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From continuing operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>         -</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>         -</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(.03</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>         .00</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>        (.03</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Basic and diluted weighted-average</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;number of common shares outstanding</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>11,976,991</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>11,956,991</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD></TR>
</TABLE>

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

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

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

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Condensed Financial Information</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AB HOLDING GROUP, INC.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>Nine Months<BR>Ended September 30<BR>(Unaudited)</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=63% ALIGN=LEFT><FONT SIZE=-1>Net rental income</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT SIZE=-1>     120,310</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT SIZE=-1>         -</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Cost on rental income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>92,060</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Gross profit from rental operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>28,250</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Administrative expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>130,758</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>(Gain) on sale of assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(131,022</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Income from rental operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>28,514</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Other income (expense):</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;Interest income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>47,298</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;Miscellaneous</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>24,016</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Income from continuing operations before</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;provision for income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>99,828</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Provision for income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Income from continuing operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>99,828</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;Loss from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(78,399</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,002,882</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Income (loss) before extraordinary item</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>21,429</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,002,882</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Extraordinary item</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain from sale of BAW joint venture,</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(net of income tax)</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>36,562</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net income (loss) and comprehensive income (loss)</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>      21,429</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    (966,320</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Basic and diluted net income(loss) per common share</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From continuing operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>         .01</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>         -</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(.01</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(.08</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From extraordinary item</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>         .00</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>        (.08</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Basic and diluted weighted-average</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;number of common shares outstanding</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>11,976,991</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>11,956,991</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD></TR>
</TABLE>

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

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Condensed Financial Information</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AB HOLDING GROUP, INC.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="339" style='margin-left:129.75pt;border-collapse:collapse'>
    <tr >
        <td width="100%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>CONDENSED STATEMENTS OF CASH FLOWS</font></p> </td> </tr></table>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>Nine Months Ended September 30<BR>(Unaudited)</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=59% ALIGN=LEFT><FONT SIZE=-1>Cash flows from operating activities:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=-1></FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=14% ALIGN=RIGHT><FONT SIZE=-1></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;Net income from continuing operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>     99,828</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;Net loss from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(78,399</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> (1,002,882</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;Gain from extraordinary item</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>36,562</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;Adjustments to reconcile net loss to</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;net cash used in operating activities:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>197,946</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;(Gain) on sale of assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(131,022</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(46,364</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;Changes in assets and liabilities:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>632,042</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(208,846</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Assets of discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>106,098</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>130,531</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(53,729</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(253,126</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>99,573</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operational costs payable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,325,099</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liabilities</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(233,393</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>871,170</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Liabilities of discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,534</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Income tax payable</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(310</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(120,909</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net cash used in operating</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;activities</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,158,948</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(119,847</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Cash flows from investing activities:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;Capital expenditures on assets held</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for sale</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(8,395</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;Proceeds from sale of assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,455,428</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>652,116</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net cash provided by investing</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;activities</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,447,033</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>652,116</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Cash flows from financing activities:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;Net proceeds from (payments on) line</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of credit</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(459,965</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;Principal payments on debt</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,071,488</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(150,730</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net cash used by financing activities</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,071,488</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(610,695</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net decrease in cash</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(783,403</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(78,426</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Cash and cash equivalents at beginning</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;of period</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>2,982,728</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>167,528</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Cash and cash equivalents at end of period</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  2,199,325</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>     89,102</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Condensed Financial Information</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AB HOLDING GROUP, INC.<BR>Notes to Condensed
Financial Information<BR>(Unaudited)</FONT></P>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Note 1 - Description of Business and Summary of Significant</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.75pt;padding-bottom:1;padding-top:0;'><font size=2>Accounting Policies</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The accompanying unaudited condensed financial statements have been prepared in accordance with the instructions to Form 10-Q.  They do not include all information and footnotes necessary for a fair presentation of financial position and results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America.  These condensed financial statements should be read in conjunction with the financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2004. In the opinion of management, all adjustments of a normal recurring nature that are considered necessary for a fair presentation have been included in the interim period.  As discussed in the Company&#146;s Form 10-K for the year ended December 31, 2004, substantially all of the operating assets of the Company, which accounted for all of the
operations of the Company, were sold to Miller St. Nazianz Inc., on November 30, 2004 (the &#147;Asset Sale&#148;).  Following the Asset Sale, the Company had no ongoing rights to any benefits derived from its former operations. Operating results for the period ended September 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005.</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On August 13, 2004, the Company entered into an Asset Purchase Agreement to sell substantially all of the Company&#146;s operating assets to Miller St. Nazianz, Inc., a Wisconsin corporation who integrated the former operations of Ag-Bag into their farm equipment manufacturing business operations.  On November 30, 2004, the Company&#146;s shareholders approved the transaction and the Company closed the Asset Purchase Agreement dated August 13, 2004.  Upon the closing, Ag-Bag sold Miller substantially all of our operating assets (inventory, equipment, and patents), and Miller assumed certain liabilities relating to the purchased assets and the operations of our business arising after the closing.  Certain of our assets were excluded.  </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>As a result of the Asset Sale, the Company terminated most of its employees, paid termination benefits and began making payments pursuant to change of control agreements during the fourth quarter of 2004.  </font></p>

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

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

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

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

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On April 11, 2000, the Company entered into Change of Control Agreements with its current and former executive officers, Messrs Inman, Jay, Wallis and Schuette, and Mrs. Tucker and key personnel. These agreements provide for payments to the executive officer or key employee of the Company of one year&#146;s annual base salary and a bonus of $5,000 for each year of Company service in excess of five years, in addition to outplacement services and continued Company employee benefit coverage for a one-year period in the event that such officer is terminated without cause within the period governed by the agreement.  As a result of the change of control from the closing of the Asset Sale, and the termination of employment by the Company, these agreements became effective for former executive officers Jay, Schuette, and Tucker, and key personnel.  </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The total number of Company employees terminated pursuant to the Asset Sale (which consisted of office, customer service and manufacturing personnel) was 79 through September 30, 2005. The Company currently estimates that 3-4 employees will remain to run the limited operations and wind-down of the Company and that those employees will be terminated as their jobs are completed or upon the final distribution and liquidation of the Company.  </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The following table outlines these anticipated expenses and amounts accrued or incurred through September 30, 2005:</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Amount expected<BR>to be incurred</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Amount accrued<BR>or incurred<BR>during three-month<BR>period ended<BR>September 30, 2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Cumulative<BR>amount accrued<BR>or incurred<BR>to date since<BR>November 30, 2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=41% ALIGN=LEFT><FONT SIZE=-1>One-time termination benefits</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=15% ALIGN=RIGHT><FONT SIZE=-1>   130,500</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=15% ALIGN=RIGHT><FONT SIZE=-1>  -</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=15% ALIGN=RIGHT><FONT SIZE=-1>   133,024</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Change of control agreements</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,200,000</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,204,151</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Payment of unused sick/vacation benefits</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>46,000</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>35,263</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Contract termination costs</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>10,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>10,500</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Other costs</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>69,000</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>9,061</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>69,061</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> 1,456,000</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>     9,061</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> 1,451,999</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

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

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

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

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

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The following table identifies the discontinued operational costs payable that have been recorded as a result of the sale to Miller St. Nazianz Inc. and the activity related to those accruals during the nine-month period ended September 30, 2005:</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Total</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Change of<BR>Control<BR>Liability<BR>&amp; Taxes</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Transitional<BR>Costs</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Professional<BR>&amp; Public<BR>Reporting<BR>Costs</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Asset<BR>Maintenance<BR>Costs</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Personnel &amp;<BR>Employee<BR>Benefit<BR>Costs</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=27% ALIGN=LEFT><FONT SIZE=-1>Balance December 31, 2004</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>  2,124,662</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>  1,304,303</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>     81,374</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>    305,000</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>     32,208</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>    401,777</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Costs accrued during the</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>period</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>169,038</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>175,177</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(6,139</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Payments made during the</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>period</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,494,137</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(642,215</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(80,141</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(446,521</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(24,183</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(301,077</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Balance September 30, 2005</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    799,563</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    662,088</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>      1,233</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>     33,656</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>      8,025</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>     94,561</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>


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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Following are statements of discontinued operations for the three- month period ended September 30, 2005 and 2004, and for the nine-month period ended September 30, 2005 and 2004, resulting from the sale of the Company&#146;s operating assets and equipment to Miller St. Nazianz Inc.:</font></p>

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

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>Three-Months Ended September 30,<BR>(unaudited)</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2005</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=65% ALIGN=LEFT><FONT SIZE=-1><B>NET SALES</B></FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=12% ALIGN=RIGHT><FONT SIZE=-1>        -</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=12% ALIGN=RIGHT><FONT SIZE=-1>  4,557,829</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>COST OF SALES</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>3,772,109</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>785,720</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>OTHER OPERATING EXPENSES</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>475,800</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(5,188</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>643,080</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) on sale of assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(2,005</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>31,445</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>5,188</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(362,600</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>OTHER INCOME (EXPENSE)</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(63,933</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,850</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>22,123</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>39,461</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>27,311</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(385,222</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Provision (benefit) for income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>INCOME (LOSS) FROM DISCONTINUED</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;<B>OPERATIONS</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>     27,311</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>   (385,222</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>Nine-Months Ended September 30,<BR>(unaudited)</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2005</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=63% ALIGN=LEFT><FONT SIZE=-1><B>NET SALES</B></FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT SIZE=-1>        -</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT SIZE=-1>  14,370,916</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>COST OF SALES</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>11,877,176</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>2,493,740</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>OTHER OPERATING EXPENSES</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,526,655</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>148,178</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,985,579</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) on sale of assets</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(46,364</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>116,921</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(148,178</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,089,051</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>OTHER INCOME (EXPENSE)</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(204,412</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>1,850</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joint venture equity and royalties</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>165,779</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>69,779</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>122,952</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(78,399</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(1,002,882</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Provision (benefit) for income taxes</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1><B>LOSS FROM DISCONTINUED OPERATIONS</B></FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>     (78,399</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  (1,002,882</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Assets held for sale</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Assets held for sale, net consist of the following:</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Top>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>September 30<BR>(Unaudited)</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>December 31</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=56% ALIGN=LEFT><FONT SIZE=-1>Held for sale (property, plant &amp; equipment, net)</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT SIZE=-1>   376,635</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT SIZE=-1> 1,692,103</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT SIZE=-1> 1,692,103</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;Assets held for sale, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>   376,635</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> 1,692,103</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> 1,692,103</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>Assets and Liabilities of Discontinued Operations</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On November 30, 2004, the Company&#146;s shareholders approved the Asset Purchase Agreement to sell substantially all of the Company&#146;s operating assets to Miller St. Nazianz, Inc.  Upon closing, Ag-Bag International sold Miller substantially all of the operating assets (inventory, equipment and patents), and Miller assumed certain liabilities relating to the purchased assets and operations of the business.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The assets and liabilities of Ag-Bag International included in the transaction are presented in the Condensed Balance Sheets under the captions &#147;Assets of discontinued operations&#148; and &#147;Liabilities of discontinued operations&#148; as of September 30, 2004.  The carrying amounts of the major classes of these assets and liabilities as of September 30, 2004 are summarized as follows:</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 ALIGN=CENTER>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>September 30, 2004</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=80% ALIGN=LEFT><FONT SIZE=-1>Assets:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT SIZE=-1></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed assets, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>   535,930</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>6,384,617</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=TOP>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangibles, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD ALIGN=RIGHT><FONT SIZE=-1>7,637</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD> &nbsp;</TD></TR>
<TR VALIGN=TOP>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets of discontinued operations, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD ALIGN=RIGHT><FONT SIZE=-1> 6,928,184</FONT><HR NOSHADE COLOR=#000000 SIZE=2></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD> &nbsp;</TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Liabilities:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=TOP>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warranty reserve</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    76,287</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD> &nbsp;</TD></TR>
<TR VALIGN=TOP>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities of discontinued operations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    76,287</FONT><HR NOSHADE COLOR=#000000 SIZE=2></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
</TABLE>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Inventories consist of the following:</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
<TR VALIGN=TOP>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=5><FONT SIZE=-1>September 30<BR>(Unaudited)</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>December 31</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=41% ALIGN=LEFT><FONT SIZE=-1>Total Inventory</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=15% ALIGN=RIGHT><FONT SIZE=-1>  87,560</FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Less: Valuation Allowance</FONT></TD>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(87,560</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Inventory, net</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Inventories are stated at the lower of cost or market (net realizable value).  The Company determines cost on the first-in, first-out (FIFO) basis.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>BAW Joint Venture</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On February 27, 1997, the Company entered into a Joint Venture Agreement (Joint Venture) with Budissa Agroservice Gesellschaft and formed Budissa Agrodienstleistungen und Warenhandels (BAW).  On April 27, 2004, the Company sold its investment in the BAW Joint Venture (Budissa Agrodienstleistungen Und Warenhandels) to its former German dealer, BAG (Budissa Agroservice) for $500,000 in cash, payable 30 days from closing, to provide the Company with working capital.  BAW had no operating income prior to the sale on April 27, 2004. The Company received the $500,000 on May 26, 2004. The Company recognized $36,562 as an extraordinary gain from this sale during the second quarter of 2004.  Prior to this date, the Company had a 50% interest in BAW which was accounted for under the equity method. BAW folded and distributed silage bags throughout Europe.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Prior to the closing of the Asset Sale, the core business of the Company was historically seasonal due to the harvest seasons in North America and Europe.  The seasonal nature of the Company&#146;s operations resulted in between 53-69% of the Company&#146;s former revenue being generated during the spring and summer (2nd and 3rd Quarters). In September 2002, the Company took additional steps to counteract seasonality by developing and introducing a pre-season ordering program, whereby the Company&#146;s dealer&#146;s placed their next year&#146;s annual product requirements order in advance.  This allowed the Company to know in advance its production mix which in turn allowed leveling of production and flexibility in customer shipments. During 2003, the Company expanded this program by allowing dealers to finance through their local bank, rather than requiring them to utilize one of the Company&#146;s
third-party financing programs.  This however, brought seasonality back into play for the Company, as shipments under the dealer bank program were at the timing of the dealer rather than the Company under the terms of the program.  The Company&#146;s trade-off with shipment flexibility however, was lower overall financing costs under the dealer bank program versus the pre-season ordering program.  Approximately 50% of the Company&#146;s dealers used the local dealer bank financing program option. This pre-season order program terminated with the Asset Sale on November 30, 2004. The three-month and six-month period results are not indicative of the estimated results for a full fiscal year.     </font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>As a result of the Asset Sale, Miller has assumed all warranty obligations for items sold after November 30, 2004, the date of closing. Prior to the Asset Sale to Miller St. Nazianz, Inc., on November 30, 2004, at the time of sale, the Company accrued a liability for the estimated future costs to be incurred under the provisions of its warranty agreements. The Company reviewed its historical warranty expense and current sales trends in products covered under warranty, and adjusted its warranty reserves accordingly.</font></p>

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


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The activity in that account for the
quarters ended was as follows: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Sept. 30,<BR>2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Sept. 30,<BR>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=67% ALIGN=LEFT><FONT SIZE=-1>Balance, beginning of the period</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT SIZE=-1></FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT SIZE=-1></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  13,430</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  74,753</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Charged to expense</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(10,770</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>80,987</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Warranty costs incurred during the quarters</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(2,660</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>(79,453</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Balance, end of quarter</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  -</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  76,287</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>


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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>15</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Income taxes are lower than the expected statutory rates due to the Company&#146;s net operating loss carryforwards, recognition of tax benefits of the research and development tax credit and the non-taxability of income from the Company&#146;s former investment in its BAW Joint Venture and the extraterritorial income exclusion, prior to its sale during the second quarter of 2004.  In addition, management has established a valuation allowance of $3,051,000 to fully reserve against its deferred tax assets at September 30, 2005.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company applies Accounting Principles Board (APB) Opinion No. 25, &#147;Accounting for Stock Issued to Employees,&#148; and related interpretations in accounting for its stock option plan. Accordingly, compensation expense related to grants to employees would be recorded on the date of grant only if the current market price of the underlying stock exceeded the exercise price. Had compensation cost for the Company&#146;s stock option plan been determined based upon the fair value at grant date for awards under the plan consistent with the methodology prescribed under Statement of Financial Accounting Standards (SFAS) No. 123, &#147;Accounting for Stock-Based Compensation,&#148; additional compensation expense would have been recognized.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>There were no options granted during the nine-month periods ended September 30, 2005 or 2004. Therefore, the pro-forma effect on net income (loss) for stock options granted is the same as the net income (loss) reported:</font></p>

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=700>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Sept. 30,<BR>2005</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Sept. 30,<BR>2004</FONT></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=56% ALIGN=LEFT><FONT SIZE=-1>Net income (loss):</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=16% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1></FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=16% ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1></FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;As reported</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    21,429</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>   (966,320</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Pro forma</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>    21,429</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>   (966,320</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net income (loss) per share from</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>continuing operations:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;As reported</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>.01</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Pro forma</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>.01</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Net income (loss) per share from</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>discontinued operations:</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;As reported</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD>
        <TD ALIGN=RIGHT><FONT SIZE=-1>(.01</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD>
        <TD ALIGN=RIGHT><FONT SIZE=-1>(.08</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>)&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;Pro forma</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD>
        <TD ALIGN=RIGHT><FONT SIZE=-1>(.01</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD>
<TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD>
        <TD ALIGN=RIGHT><FONT SIZE=-1>(.08</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD></TR>
</TABLE>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>16</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Recently Issued Accounting Standards</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In May 2005, the Financial Accounting Standards Board (&#147;FASB&#148;) issued SFAS No. 154, &#147;Accounting Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB Statement No. 3.&#148; This Statement requires retrospective application to prior periods&#146; financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. This Statement applies to all voluntary changes in accounting principle and those changes required by an accounting pronouncement if there are no specific transition provisions. Previous to this Statement, the cumulative effect of the change in accounting principle was included as an adjustment to net income in the period of the change. This standard is effective for accounting changes and corrections of errors made in fiscal years beginning
after December 15, 2005. The implementation of this statement is not expected to have a material impact on the Company&#146;s financial statements.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In December&nbsp;2004, the FASB issued SFAS No. 153, &#147;Exchanges of Non-monetary Assets, an Amendment of APB Opinion No. 29</font><i><font size=2>.</font></i><font size=2>&#148;  The guidance in APB Opinion No. 29, &#147;Accounting for Non-monetary Transactions,&#148; is based on the principle that exchanges of non-monetary assets should be measured based on the fair value of the assets exchanged.&nbsp; The guidance in APB Opinion No. 29, however, included certain exceptions to that principle. SFAS No. 153 amends APB Opinion No. 29 to eliminate the exception for non-monetary exchanges of similar productive assets and replaces it with a general exception for exchanges of non-monetary assets that do not have commercial substance. A non-monetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange.&nbsp;
SFAS No. 153 is effective for non-monetary asset exchanges in fiscal periods beginning after June&nbsp;15, 2005.&nbsp;The implementation of this statement is not expected to have a material impact on the Company&#146;s financial statements.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In December 2004, the FASB issued SFAS No. 123R (revised 2004), &#147;Share-Based Payment</font><i><font size=2>,</font></i><font size=2>&#148; which is a revision of SFAS No. 123, &#147;Accounting for Stock-Based Compensation</font><i><font size=2>.</font></i><font size=2>&#148;  SFAS No. 123R supersedes APB Opinion No. 25, &#147;Accounting for Stock Issued to Employees,&#148; and amends SFAS No. 95</font><i><font size=2>,</font></i><font size=2> &#147;Statement of Cash Flows.&#148;  Generally, the approach in Statement 123R is similar to the approach described in SFAS 123, however, SFAS 123R require</font><i><font size=2>s</font></i><font size=2> all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosures seen in Note 2 to the Consolidated Financial Statements, &#147;Summary
of Accounting Principles &#150; Stock Option Plans,&#148; will no longer be an alternative. SFAS No. 123R is effective for calendar year filers with the interim period ending March 31, 2006.</font><b><font size=2> </font></b><font size=2>The implementation of this statement is not expected to have a material impact on the Company&#146;s financial statements.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>17</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In November 2004, the FASB issued SFAS No. 151, &#147;Inventory</font><i><font size=2> </font></i><font size=2>Costs, an Amendment of ARB No. 43, Chapter 4.&#148; SFAS No. 151 amends ARB 43, Chapter 4, to clarify that the abnormal amounts of idle facility expense, freight, handling costs and wasted materials (spoilage) be recognized as current period charges. It also requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities.&nbsp; SFAS No. 151 is effective for inventory costs incurred during fiscal years beginning after June 15, 2005.&nbsp;</font><b><font size=2> </font></b><font size=2>The implementation of this statement is not expected to have a material impact on the Company&#146;s financial statements.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 2.  Management's Discussion And Analysis Of Financial Condition And Results Of Operations.</font></b></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Reference is made to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations", included in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, on file with the Securities and Exchange Commission (&#147;SEC&#148;).  The following discussion and analysis pertains to the Company's results of operations for the three-month period ended September 30, 2005, compared to the results of operations for the three-month period ended September 30, 2004, and to the results of operations for the nine-month period ended September 30, 2005, compared to the results of operations for the nine-month period ended September 30, 2004, and to changes in the Company's financial condition from December 31, 2004 to September 30, 2005.  These unaudited financial statements include all adjustments which are, in the opinion of management, necessary to
reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>On November 30, 2004, Ag-Bag International Limited (now known as AB Holding Group, Inc.), (the &#147;Company&#148;) completed the sale of substantially all its operating assets (the &#147;Asset Sale&#148;) to Miller St. Nazianz Inc., (&#147;Miller&#148;) and Miller assumed certain liabilities relating to the purchased assets and the operation of our business arising after the closing.  The assets acquired by Miller consisted of substantially all of the operating assets of the Company including: Inventory, Equipment, and Intangible assets.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>Some of the Company&#146;s assets were excluded from the Asset Sale.  Because Miller is an existing company with its own manufacturing facilities, Miller did not need to purchase the Company&#146;s real estate, paint booths and systems, or Visual computer system.  The excluded assets consisted of:</font></p>

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



<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>cash;&nbsp; </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>accounts
receivable;&nbsp; </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>real
estate;&nbsp; </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>paint
booths and systems; </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Visual
computer system;&nbsp; </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>corporate
minute and stock record books and corporate seal, general accounting records and books of
original entries, checkbooks and cancelled checks, and tax returns, reports and related
records of the Company (&#147;Corporate Records&#148;); and </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>rights
and interest in and to any contracts not assumed by Miller, if any; and  </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#149;</b> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a
plastics supply agreement with UpNorth (&#147;UpNorth&#148;). </FONT></TD>
</TR>
</TABLE>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Asset Sale resulted in the elimination of the Company&#146;s historical farm feed management and composting system operations with a corresponding elimination of substantially all of the Company&#146;s operating revenue and related operating expenses.  The Company&#146;s only operations currently consist of converting its remaining assets into cash and corporate administrative expenses of winding down until the Company can either dissolve and liquidate or sell to another party by merger or another method.  Therefore, except as otherwise specifically set forth in this report, the results of operations of the historical business set forth in this report do not reflect the effects on the Company&#146;s operations which resulted from the closing of the Asset Sale. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The taxable gain generated as a result of the Asset Sale was offset by the utilization of net operating loss carryforwards.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>19</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Critical Accounting Policies</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company&#146;s significant accounting policies are described in Note 1 to the financial statements included in Item 15 of the Annual Report on Form 10-K, filed with the SEC for the year ended December 31, 2004. The Company believes its most critical accounting policies include held for sale assets valuation reserves, allowance for doubtful accounts, accounting for income taxes, and previously accounting for inventory obsolescence reserves, warranty reserves, pre-season order flooring interest, and recourse obligation reserves. Most of these policies related to the Company&#146;s historical silage bagging operations and certain of the policies may not necessarily apply to, or have the same impact on, the Company&#146;s current or future operations.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>The $174,326 estimate for assets held for sale valuation reserves was developed using the Company&#146;s fixed asset report, combined with estimates of fair market value, marketability, usability/specialization of the asset by a potential purchaser, and asset life of those remaining assets held for sale.  As trends in these variables change, the assets held for sale valuation reserve is updated.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>The $28,660 estimate of allowance for doubtful accounts is comprised of a specific account analysis which addresses accounts over 90 days past due and provides for a fully reserved allowance against them.  Prior to the closing of the Asset Sale, accounts where specific information indicated a potential loss may exist were reviewed and a specific reserve against amounts due was recorded.  As additional information became available, such specific account reserves were updated.  Additionally, a general reserve was applied based upon historical collection and write-off experience.  As trends in historical collection and write-offs changed, the general reserve was updated.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>The Company accounts for income taxes under the asset and liability method.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established to reduce potential deferred tax assets when it is more likely than not that all or some portion of potential deferred tax assets will not be realized. The Company has established a $3,051,000 valuation allowance against its tax assets as of September 30, 2005.</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Previously, the Company&#146;s estimate for inventory obsolescence reserves was developed using inventory-aging reports for finished goods, combined with historical usage and forecasted usage and inventory shelf life. The Company&#146;s estimates of market value incorporated projections of future sales volume by product class. As a result of the sale of the Company&#146;s remaining inventory during the third quarter of 2005, there is no longer any inventory valuation reserve necessary. Prior to the closing of the Asset Sale, in estimating the market value of parts inventory items, the Company reviewed current inventory levels in relation to sales forecasts and adjusted the valuation reserve accordingly.  For the remaining categories of inventory, the Company established a reserve balance based on the aging of the specific inventory items. As trends in those variables changed, the
percentages applied to the inventory aging categories were updated.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Previously, the Company estimated its warranty reserve based upon the estimated future costs to be incurred under the provisions of the Company&#146;s warranty agreements on its bags and machines. As a result of the Asset Sale, Miller has assumed all warranty obligations for items sold after November 30, 2004, the date of closing.  Prior to the closing of the Asset Sale, the Company reviewed its historical warranty expense and current sales trends in specific products covered under warranty and reserves were updated as trends in those variables changed.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Prior to the closing of the Asset Sale, the Company estimated its future interest that would be incurred by the Company associated with sales under its dealer pre-season order program. At the time of sale, the Company reduced sales revenue and accrued a liability for the estimated future interest obligation.  The Company estimated its future interest obligation pursuant to the terms of its pre-season order program and the shipping periods defined therein.  The Company estimated that machinery shipped between October and May of each year would be sold at the dealer level by the end of May, and accrued an estimated future interest liability accordingly (ranging from 30 to 210 days). For machinery shipped after May, the Company estimated (since bagging season was in full swing) that it would incur interest for approximately 30 days, and accrued an estimated liability accordingly.  For all
other products, the Company accrued an estimated future interest liability (ranging from 30 to 180 days) under the assumptions that the product would be sold at the dealer level by the end of the respective shipping periods as defined in the pre-season order program.  For additional products ordered and shipped outside the defined shipping periods, the Company accrued an estimated future interest liability of approximately 30 days, which according to the pre-season order program, the Company paid interest through the end of the month of shipment.  This program and the Company&#146;s obligation for interest ceased with the Asset Sale on November 30, 2004.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>21</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Prior to the closing of the Asset Sale, the Company periodically assigned some of its trade accounts receivable to various third-party financing sources.  These accounts were assigned with or without recourse depending on the specific accounts assigned.  The Company reviewed on a monthly basis those accounts assigned with recourse to determine their payment history with the third-party financing source and estimated if any accrual was necessary for potential future recourse obligations. During the quarter ended June 30, 2005, the Company was relieved of any recourse obligations from John Deere Credit&#146;s Farmplan program upon their termination of the Company&#146;s former third-party financing account. At September 30, 2005, the balance of assigned accounts with recourse to Washington County Bank was $225,245.  On October 11, 2005, the Company was notified by Washington County Bank
that it was relieved of all remaining recourse obligations with them.  As a result, the balance of accounts assigned with recourse is now $-0-.</font><u><b><font size=2> </font></b></u><font size=2>&nbsp;</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Forward-Looking Statements</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Certain statements in this Form&nbsp;10-Q contain "forward-looking" information that involves risks and uncertainties that may cause actual results to differ materially from those predicted in the forward-looking statements.  Forward-looking statements can be identified by their use of such verbs as expects, anticipates, believes or similar verbs or conjugations of such verbs.  If any of the Company's assumptions on which the forward-looking statements are based prove incorrect or should unanticipated circumstances arise, the Company's actual results could differ materially from those anticipated by such forward-looking statements.  The differences could be caused by a number of factors or combination of factors including, but not limited to, the factors listed below and the risks detailed in the Company's Securities and Exchange Commission filings, including the Company's Form&nbsp;10-K
for the fiscal year ended December&nbsp;31, 2004.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Forward-looking statements contained in this Form&nbsp;10-Q relate to the Company's plans and expectations as to the timing and ability of the Company to convert its remaining assets into cash and dissolve and liquidate the corporation.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following factors, among others, could cause actual results to differ materially from those indicated in the forward-looking statements:  the pending Warrenton, Oregon building sale may not close as anticipated, we may be unable to dissolve and liquidate the Corporation, we may be unable to retain key management and personnel as a result of the Asset Sale, the Company no longer has any source of operating revenues and may be unable to obtain financing or credit, the Asset Purchase Agreement with Miller exposed us to contingent liabilities, and our affiliates and their transferees may not be able to sell our common stock as a </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>22</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>result of the Asset Sale, unless we file a registration statement (which we are not required to do).</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.29in;text-align:justify;'><font size=2>As discussed in the &#147;Recent Developments&#148; section, substantially all of the operating assets of the Company, which accounted for all of the operations of the Company, were sold to Miller on November 30, 2004.  Following the Asset Sale, the Company had no ongoing rights to any benefits derived from its former operations. The Company&#146;s current operations consist of interim rental of its remaining real estate (which is currently pending sale), converting its remaining assets into cash and corporate administrative expenses of winding down until the Company can dissolve and liquidate. The Company&#146;s operations and the gain recorded from the Asset Sale are not indicative of the Company&#146;s operating results going forward.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.29in;text-align:justify;'><font size=2>Prior to the closing of the Asset Sale, the core business of the Company was historically seasonal due to the harvest seasons in North America and Europe.  The Company's machinery tended to be purchased in anticipation of the next harvest season, so most of the sales of machinery occurred in the spring and summer.  This required the Company to carry significant amounts of inventory to meet rapid delivery requirements of customers.  Bag sales tended to occur as the harvest season approached in the summer, and during the harvest season in the fall.  In September 2002, the Company took steps to counteract seasonality by developing and introducing its pre-season ordering program, whereby the Company&#146;s dealers placed their next year&#146;s annual product requirements order in advance and utilized one of the Company&#146;s third party financing sources.  The pre-season program allowed the
Company to know in advance its production mix which in turn provided the Company with the ability to level its production and flexibility in customer shipments.  During 2003, the Company expanded this program by allowing dealers to finance through their local bank, rather than requiring them to utilize one of the Company&#146;s third-party financing programs.  This however, brought seasonality back into play for the Company, as shipments under the dealer bank program were at the timing of the dealer rather than the Company.  The Company&#146;s trade-off with shipment flexibility however, was lower overall financing costs under the dealer bank program.  Approximately 50% of the Company&#146;s dealers used the local dealer bank financing program option. The pre-season order program was a program under which the Company paid the flooring interest for its dealers and paid a volume discount to its dealers based upon a sliding scale for the volume of orders placed by and shipped to the
dealer under the program.</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>23</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.29in;text-align:justify;'><font size=2>Prior to the closing of the Asset Sale, approximately 95% of the Company&#146;s business was concentrated in the Northern Hemisphere resulting in between 53-69% of the Company&#146;s revenue being generated during the spring and summer (2</font><sup><font size=2>nd</font></sup><font size=2> and 3</font><sup><font size=2>rd</font></sup><font size=2> Quarters).  The following table outlines the percentage of revenue over the past three years by quarter:</font></p>

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


<table border="0" cellspacing=0 cellpadding=0 width="85%" style='margin-left:44.8pt;border-collapse:collapse'>
    <tr style='height:15.0pt'>
        <td width="37%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><u><font size=2>Quarter</font></u><u></u></p> </td>
        <td width="17%" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2002</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2003</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2004</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="37%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>First</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>18%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>32%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>20%</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="37%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Second</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>37%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>27%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>27%</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="37%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Third</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>32%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>26%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>22%</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="37%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fourth</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>13%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>15%</font></p> </td>
        <td width="4%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>31%*</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>*As a result of the Asset Sale.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>As a result of the closing of the Asset Sale, these historical revenue percentages are not indicative of future revenue percentages by quarter. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>The following chart outlines the historical yearly average milk prices as published by the USDA which was used by the Company in its former operations.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><img src="img1.gif"><br> </p>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Source:  USDA basic
Formula Price (BFP) annualized average&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Prior to the closing of the Asset Sale, the outlook for 2005 indicated that milk prices would remain above the record low levels seen during early 2003 of $9.11, and were forecast to settle above $12. The following chart outlines the historical monthly milk prices from January 2003 through November 2004 (the closing of the asset sale) as published by the U.S. Department of Agriculture (USDA) which was used by the Company in its former operations.</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>24</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><img src="img2.gif"><br> </p>


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Source:  USDA basic
Formula Price (BFP) monthly </FONT></P>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Dairy farmers began seeing increases in their monthly milk checks during the first quarter of 2004, but continued to remain cautious during 2004, despite continued low interest rates, on increasing their capital expenditures, as milk prices fell off the highs seen earlier during 2004 and began settling back down to a forecasted level of between $12 to $13 for 2005.  Management believed that once sustained, prolonged upward movement in U.S. milk prices and breakeven yearly milk price averages of above $12 were seen, farmers would be able to repay their existing, older obligations which had mounted from the persistently low milk prices over the last several years, and purchase the Company&#146;s products.  However, during the second quarter of 2004, milk prices began falling off their highs of May 2004, and end users seemed to believe that milk prices would settle back to below breakeven
levels for them, despite forecasts indicating milk prices averaging over $12 into 2005.  As a result, farmers became over cautious again on their capital expenditures and were conserving their operating cash.  As a result of the Asset Sale, milk prices no longer directly correlate to the Company&#146;s revenues.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Results of Operations</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Following the Asset Sale,
the Company had no ongoing rights to any benefits derived from its former farm feed management system operations.
The Company&#146;s current operations consist of interim rental of its remaining real estate facility located in
Warrenton, Oregon (which is currently pending sale), converting its remaining assets into cash and corporate
administrative expenses of winding down until the Company can dissolve and liquidate.  Therefore, comparison
to the three-month and nine-month periods ended September 30, 2004 is not meaningful, or indicative of the
Company&#146;s operations going forward, as it has no further farm feed management system operations.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Net rental income for
the quarter ended September 30, 2005 was $6,000.  Net rental income for the nine-month period ended September</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>25</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>30, 2005 was $120,310. Rental income consisted of temporary rents received for rental of a portion of its Warrenton, Oregon and Blair, Nebraska buildings on a temporary basis while the properties were actively brokered and marketed for sale.  The Company sold its Blair, Nebraska facility on September 29, 2005 and currently has a sale pending on its Warrenton, Oregon facility which is anticipated to close during the fourth quarter of 2005.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Gross deficit from rental operations for the quarter ended September 30, 2005 was ($29,636). Gross profit from rental operations for the nine-month period September 30, 2005 was $28,250.  Gross profit (deficit) from rental operations reflected income after utility costs and interest expense (debt service costs) on the real estate being rented while held for sale.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Administrative expenses for the quarter ended September 30, 2005 were $63,737.  Administrative expenses for the nine-month period ended September 30, 2005 were $130,758.  Administrative expenses reflected the ongoing limited administrative costs of winding down operations, bank charges, telephone expenses, property taxes, collection costs of collecting the Company&#146;s remaining receivables, professional fees, and administrative costs and expenses associated with remaining a public entity.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>The Company recorded a gain on the sale of assets for the quarter ended September 30, 2005 in the amount of $129,022.  For the nine-month period ended September 30, 2005, the Company recorded a gain from the sale of assets of $131,022.  The gain for the quarter was the result of the Company selling one of its remaining facilities along with paint booth equipment located in Blair, Nebraska in a sale which closed on September 29, 2005.  The gain for the nine-month period was the result of the sale of the Blair, Nebraska facility in addition to the sale of other miscellaneous assets during the first half of the year.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Interest income for the quarter ended September 30, 2005 was $15,051.  Interest income for the nine-month period ended September 30, 2005 was $47,298.  Interest income for the quarter and nine-month period represented earnings on the Company&#146;s invested cash from the Asset Sale.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>Miscellaneous income for the quarter ended September 30, 2005, was $760.  Miscellaneous income for the nine-month period ended September 30, 2005 was $24,016.  Miscellaneous income for the quarter and nine-month period represented various supplier and miscellaneous refunds received as a result of the Company ceasing its former operations in connection with the Asset Sale, and from the sale of scrap material not wanted by Miller.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.49in;text-align:justify;'><font size=2>The Company&#146;s effective
income tax rate for the quarter and nine-month period ended September 30, 2005 was zero.  The effective tax rate was zero
 during the quarter and nine-month period because</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>26</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.0in;text-align:justify;'><font size=2> the Company established a valuation allowance against its deferred
tax assets.  The valuation allowance was established because of the uncertainty regarding the ability of the Company
 to utilize its net operating loss carryforwards and research tax credit carryforwards; given the fact the Company no
 longer has any source of operating income.  </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Income from discontinued operations for the quarter ended September 30, 2005 was $27,311 compared to a loss from discontinued operations of ($385,222) for the quarter ended September 30, 2004. Loss from discontinued operations for the nine-month period ended September 30, 2005 was ($78,399) compared to ($1,002,882) for the nine-month period ended September 30, 2004.  As discussed in the recent developments section, the Company sold all of its operating assets in the Asset Sale on November 30, 2004.  As a result of the Asset Sale, all operations for the quarter and nine-month period ended September 30, 2004 have been reclassified as discontinued operations. The income from discontinued operations for the quarter ended September 30, 2005 represented a reduction in the Company&#146;s allowance for doubtful accounts from its former receivables as a result of unanticipated collections, in
addition to the sale of the Company&#146;s remaining inventory not taken by Miller in the Asset Sale, and the write-off of remaining expired warranty obligations related to the Company&#146;s former operations. The loss from discontinued operations for the nine-month period ended September 30, 2005 was the result of the above mentioned factors, coupled with various insurance refunds, and additional professional fees incurred during the first quarter related to the Company&#146;s discontinued operations resulting from the Asset Sale.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company recorded an extraordinary gain from the sale of its German joint venture of $36,562 during the quarter ended June 30, 2004.  On April 27, 2004, the Company sold its investment in the BAW Joint Venture (Budissa Agrodienstleistungen Und Warenhandels) to its former German dealer, BAG (Budissa Agroservice), to provide the Company with working capital.  Prior to this date, the Company had a 50% interest in the BAW Joint Venture which was accounted for under the equity method of accounting.  (See &#147;Notes to Condensed Financial Information&#148;.)</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Net income for the
quarter ended September 30, 2005 was $78,771 compared to a net loss of ($385,222) for the quarter ended September 30,
 2004.  Net income for the nine-month period ended September 30, 2005 was $21,429 compared to a net loss of ($966,320)
 for the nine-month period ended September 30, 2004.  The increase in net income for the quarter and nine-month period
 was the result of the Asset Sale, coupled with the Company generating some rental income on its Warrenton, Oregon and
Blair, Nebraska properties, in addition to lower administrative costs as a result of winding down and no longer having
any ongoing operations, recording a gain from the sale of the Company&#146;s Blair, Nebraska facility,
increased interest income earnings on its invested cash from the Asset Sale, and from</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>27</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.0in;text-align:justify;'><font size=2>miscellaneous income
received from the Company ceasing its former operations as a result of the Asset Sale.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Liquidity and Capital Resources</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Prior to the closing of the Asset Sale, the seasonal nature of the northern hemisphere farming industry, the production time for equipment, and the time required to prepare bags for use required the Company to manufacture and carry high inventories to meet rapid delivery requirements.  In particular, the Company needed to maintain a significant level of bags during the spring and summer to meet the sales demands during the harvest season.  The Company used working capital and trade credit to increase its inventory so that it had sufficient inventory levels available to meet its sales demands.  Although the Company&#146;s pre-season ordering program provided it with some flexibility in production, the Company needed to maintain adequate inventory levels for those customers, both old and new, who ordered or re-ordered product outside of this program throughout the year.&nbsp;</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Prior to the Asset Sale, the Company relied on its suppliers to provide trade credit to enable the Company to build its inventory. The Company's suppliers previously provided sufficient trade credit to meet the demand and were flexible with their payment terms (including extended payment arrangements) provided to the Company. However, as a result of the Asset Sale, no assurance can be given that creditors will continue to provide sufficient trade credit in the future for the Company&#146;s ongoing corporate administrative expenses incurred until it can either dissolve and liquidate or sell the remaining public entity to another party by merger or another method.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>At September 30, 2005, the Company had cash and cash equivalents of $2,199,325, compared to $89,102 as of September 30, 2004.  The increase in cash and cash equivalents was the result of the proceeds received from the Asset Sale and the sale of the Company&#146;s Blair, Nebraska facility.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Accounts receivable decreased 99.99% at September 30, 2005 to $90 compared to $1,435,236 at September 30, 2004.  The decrease was the result of the Asset Sale.  At September 30, 2005, the Company still had some receivables outstanding from its former operations under its old collection method of providing terms for certain customers.  The Company has established adequate reserves ($28,660 at September 30, 2005 compared to $202,903 at September 30, 2004) against accounts receivable in the event that some of the remaining accounts become uncollectible.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Prior to the closing of the
Asset Sale, the Company relied on its third-party financing sources and the dealers&#146; own established credit with their
local banks, to provide funding for the Company&#146;s dealers&#146; and retail customers&#146; purchases under the pre-season
 order program.  The Company&#146;s third-party financing sources and dealers&#146; local banks previously provided sufficient
 credit to the Company&#146;s dealers for the Company to receive payment.  As of September 30,
2004, the Company began processing charges for its customers/dealers who used John Deere Credit&#146;s Farmplan program,
on</font></p>


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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>28</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.0in;text-align:justify;'><font size=2> a preferred customer basis only and no longer accepted charges for those who were merchant authorized.
Farmplan preferred was more advantageous to the customer/dealer as they received better interest rates and
payment options than under the merchant program. Additionally, this reduced the Company&#146;s potential recourse
liability in the event the customer/dealer failed to pay their account under the Farmplan program terms. With the Asset
Sale, the Company no longer relies on its third-party financing sources, as it no longer has any operating activities
 requiring such financing.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Inventory was unchanged at September 30, 2005 compared to September 30, 2004 at $-0-.  The Company&#146;s remaining inventory retained after the Asset Sale was sold during the third quarter of 2005 and the remaining inventory valuation reserve was removed. (See &#147;Critical Accounting Policies.&#148;)  Inventory at September 30, 2004 was reclassified for financial statement comparative presentation to assets of discontinued operations.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Prepaid expenses and other current assets decreased 100% at September 30, 2005 to $-0- compared to $305,537 at September 30, 2004. The decrease was the result of the Asset Sale and discontinuing our operating activities, in addition to the Company converting to cash during the second quarter of 2005 the cash surrender value on life insurance policies which it owned and was the beneficiary.  Prior to the Asset Sale, this former asset was classified as a long term other asset, but was reclassified to a current asset as a result of the Asset Sale.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Assets held for sale, net and assets of discontinued operations, net at September 30, 2005, decreased to $376,635, compared to $8,620,287 at September 30, 2004. The Company&#146;s remaining property, plant and equipment retained after the Asset Sale, was reclassified to a current asset as a result of the Asset Sale.  The Company currently has a sale pending on its Warrenton, Oregon facility, and anticipates converting all of its assets to cash during 2005, so it can dissolve and liquidate.  The Company sold its Blair, Nebraska facility on September 29, 2005.  The Company established a reserve against it&#146;s held for sale assets at September 30, 2005 in the amount of $174,326. For financial statement comparative presentation for the period ended September 30, 2004, the Company reclassified its inventory (net), property, plant and equipment (net), and intangible assets (net) to assets
held for sale and assets of discontinued operations, net.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Other assets decreased 100% at September 30, 2005 to $-0- compared to $125,763 at September 30, 2004.  The decrease was the result of a decrease in the cash surrender value of insurance on policies maintained by the Company in which the Company was the beneficiary, by redeeming the Company&#146;s outstanding preferred stock with the life insurance policy the Company maintained on the owner of the preferred stock during the third quarter of 2004, and reclassifying the remaining cash surrender value asset on the life insurance policies owned by the Company to a current asset, as the Company  converted its remaining policies into cash during the
second quarter of 2005. (See prepaid expenses and other current assets discussion above.) </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>29</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>The Company paid off its operating line of credit on December 2, 2004, from a portion of the proceeds of the Asset Sale.  Pursuant to its agreement with Wells Fargo Business Credit, as a result of the early termination of the Company&#146;s line of credit, the Company incurred $60,000 in early termination fees. The line was subject to renewal on May 14, 2006.  Prior to December 2, 2004, the Company had a revolving operating line of credit with a limit of $3,000,000, secured by accounts receivable, inventory, fixed asset blanket and general intangibles, and bore interest at the bank&#146;s prime rate plus 4&#190;%. The line of credit fluctuated based upon production needs and the timing of collection of the Company&#146;s receivable balances.  Additionally, the Company&#146;s borrowing base fluctuated as receivables and inventory changed.  The borrowing base was equal to (1) the lesser of
the maximum line amount or (2) the sum of 70% of eligible accounts receivable plus the lesser of (i) 40% of eligible inventory or (ii) $2 million.  The line of credit was subject to certain net worth and earnings covenants, and an annual capital expenditure limit.  From June 30, 2004 until payoff on December 2, 2004, the Company was in default with two of its financial covenants under its revolving operating line of credit with its primary lender, Wells Fargo Business Credit.  The Company was not in compliance with the net worth and earnings before taxes covenants, for its fiscal quarters ended June 30, 2004 and September 30, 2004.  These defaults were cured with the payoff of the facility. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Management believes that funds generated from the Asset Sale and the pending sale of the remaining property, plant and equipment held for sale will be sufficient to meet the Company's cash requirements through the end of 2005, until the Company can dissolve and liquidate.   </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>The current portion of long-term debt at September 30, 2005 was $-0- compared to $1,103,463 at September 30, 2004.  The decrease in the Company&#146;s current portion of long-term debt was the result of the Company paying off the debt associated with its Blair, Nebraska facility upon the sale which closed on September 29, 2005. For financial statement presentation for the period ended September 30, 2004, the Company&#146;s long-term debt was reclassified to current, as the underlying security for this debt was secured by assets that were reclassified to assets held for sale, net.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Accounts payable decreased 99.88% at September 30, 2005 to $1,280 compared to $1,036,526 at September 30, 2004. The decrease was the result of the Asset Sale.  Prior to the closing of the Asset Sale, the Company slowed its manufacturing process during the third quarter of 2004, resulting from dealer uncertainty for equipment orders due to the pending Asset Sale, and market conditions stemming from declines in milk prices.  The decline was partially offset by extended term payment arrangements provided by some of the Company&#146;s principal suppliers. (See trade credit discussion above.)</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Discontinued operational costs
payable as of September 30, 2005, were $799,563.  These costs were the result of the closing of the Asset Sale, and reflect
the Company&#146;s estimate of remaining costs associated with the winding down of its operations and reflect</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>30</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.0in;text-align:justify;'><font size=2> payments made during the quarter and nine-month period against those liabilities. During the first quarter of 2005, the Company recorded additional costs related to its discontinued operations for professional fees and reduced its personnel and employee benefit costs as a result of receiving a refund.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:justify;'><font size=2>Accrued expenses and other current liabilities and liabilities of discontinued operations (excluding discontinued operational costs payable) decreased 93.20% at September 30, 2005, to $124,777 compared to $1,834,435 at September 30, 2004.  The decrease in accrued expenses and other current liabilities for the quarter was the result of the Asset Sale coupled with decreased payroll, commission and benefit accruals from personnel terminations resulting from the Asset Sale.  Additionally, since the Company no longer has a pre-season order program, it no longer has any requirements to accrue volume discounts, program incentives or flooring interest accruals, which, along with lower accrued warranty from the Company no longer having any operations, also decreased total accrued expenses.  The Company also reclassified its accrued warranty obligations for financial statement presentation purposes
for the period ended September 30, 2004 to liabilities of discontinued operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>In 1997, the Nasdaq listing requirements were substantially expanded.  The Company does not currently qualify under the more stringent requirements because the price at which its Common Stock is trading is below the $1 per share minimum.  The Company was formally notified on January 13, 1999, that its Common Stock was delisted from quotation on The Nasdaq SmallCap Market for failure to meet the new listing requirements. The Company&#146;s Common Stock is now quoted on the OTC Bulletin Board. The removal from quotation on the Nasdaq SmallCap Market could have a material adverse effect on the Company's ability to raise additional equity capital in a public stock offering should that become necessary.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>31</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=2>The following table outlines the Company&#146;s future contractual obligations by type as of September 30, 2005:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:justify;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT SIZE=-1></FONT></TH>
     <TH COLSPAN=14><FONT SIZE=-1>Payments due by period</FONT><HR NOSHADE COLOR=#000000 SIZE=1></TH>
     <TH><FONT SIZE=-1></FONT></TH>
</TR>
<TR>
     <TH COLSPAN=3 ALIGN=LEFT><FONT SIZE=-1>Contractual<BR>Obligations</FONT></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Total</FONT></TH><TH></TH>
     <TH COLSPAN=2><FONT SIZE=-1>Less than<BR>1 year</FONT></TH><TH></TH>
     <TH COLSPAN=2><FONT SIZE=-1>1-3 years</FONT></TH><TH></TH>
     <TH COLSPAN=2><FONT SIZE=-1>3-5 years</FONT></TH><TH></TH>
     <TH COLSPAN=2><FONT SIZE=-1>More than<BR>5 years</FONT></TH><TH></TH></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=38% ALIGN=LEFT><FONT SIZE=-1>Long-Term Debt Obligations</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>   -</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>   -</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>   -</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>   -</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT SIZE=-1>   -</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Operating leases</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>183,270</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>4,470</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>35,760</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>35,760</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>107,280</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Purchase Obligations</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Other Long-Term Liabilities</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Reflected on the Registrant's</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Balance Sheet Under GAAP</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>-</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=-1>Total</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> 183,270</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>   4,470</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  35,760</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1>  35,760</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT SIZE=-1>$</FONT></TD><TD ALIGN=RIGHT><FONT SIZE=-1> 107,280</FONT></TD>
        <TD ALIGN=LEFT><FONT SIZE=-1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>


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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Off-Balance Sheet Arrangements</font></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>As of September 30, 2005, the Company did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.</font></p>

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>32</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 3. Quantitative and Qualitative Disclosures about Market Risk. </font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, commodity prices and equity prices. The primary market risk to which the Company was exposed was interest rates. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:justify;'><font size=2>The Company's exposure to changes in interest rates ended on September 29, 2005 with the payoff of its long-term fixed rate debt upon the sale of its Blair, Nebraska facility.  Prior to September 29, 2005, the risk was minimal, as all of the Company's long-term debt was fixed rate. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 4. Controls and Procedures.</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Evaluation of Disclosure Controls and Procedures</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As of September 30, 2005, the Company carried out an evaluation, under the supervision and with the participation of the Company&#146;s management, including the Company&#146;s Chief Executive Officer and the Company&#146;s Chief Financial Officer, of the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures. Based on the evaluation, the Company&#146;s Chief Executive Officer and Chief Financial Officer have concluded that the Company&#146;s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Changes in Internal Control Over Financial Reporting</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There has been no change in the Company&#146;s internal control over financial reporting that occurred during the nine months ended September 30, 2005 that has materially affected, or is reasonably likely to materially affect, the Company&#146;s internal control over financial reporting.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>33</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>PART II - OTHER INFORMATION</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 6.  Exhibits </font></b></p>

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


<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibits: </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.11 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Purchase
Agreement dated August 29, 2005 between AB Holding Group, Inc. and Buhler Manufacturing. </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.12 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commercial
&amp; Investment Real Estate Purchase &amp; Sale Agreement dated August 16, 2005 between
AB Holding Group, Inc. and Chuck Taggart and Glen Taggart. </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rule
13a-14(a)/15d-14(a) Certification of Chief Executive Officer  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rule
13a-14(a)/15d-14(a) Certification of Chief Financial Officer  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section
1350 Certification of Chief Executive Officer and Chief Financial Officer </FONT></TD>
</TR>
</TABLE>
<BR>

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>34</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

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

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

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to the requirements of the
Securities Exchange Act of1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized. </FONT></P>

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

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





<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=100%>
<TR VALIGN="BOTTOM">
     <TD><FONT SIZE="-1"></FONT></TD>
     <TD ALIGN=LEFT><FONT SIZE="-1">AB HOLDING GROUP, INC.,<BR>a Delaware corporation<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH=50%><FONT SIZE="-1">&nbsp;</FONT></TD>
     <TD WIDTH=50%><FONT SIZE="-1">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH=50%><FONT SIZE="-1">&nbsp;</FONT></TD>
     <TD WIDTH=50%><FONT SIZE="-1">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT SIZE="-1">&nbsp;</FONT></TD>
     <TD><FONT SIZE="-1">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT SIZE="-1">&nbsp;</FONT></TD>
     <TD><FONT SIZE="-1">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT SIZE="-1">Date: October 31, 2005</FONT></TD>
     <TD><FONT SIZE="-1">By: <U>/s/ Michael R. Wallis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Michael R. Wallis<BR>Chief Financial Officer and<BR>Vice President of Finance</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT SIZE="-1">&nbsp;</FONT></TD>
     <TD><FONT SIZE="-1">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT SIZE="-1">&nbsp;</FONT></TD>
     <TD><FONT SIZE="-1">(duly authorized and principal<BR>financial officer)</FONT></TD></TR>
</TABLE>



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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>35</font></p>

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

<p style='page-break-before:always'></p>
<pAGE>

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:center;'><font SIZE=2>EXHIBIT INDEX</font></p>

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

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


<table border="0" cellspacing=0 cellpadding=0 width="376" style='border-collapse:collapse'>
    <tr >
        <td width="23%" valign=top >
            <p  ><font size=2>Exhibit</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Number</font></u></p> </td>
        <td width="61%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Description of Exhibit</font></u></p> </td> </tr>
    <tr>
        <td width="87" ></td>

        <td width="57" ></td>

        <td width="232" ></td> </tr> </table>

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


<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.11  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Purchase
Agreement dated August 29, 2005 between AB Holding Group, Inc. and Buhler Manufacturing.  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.12  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Commercial
&amp; Investment Real Estate Purchase &amp; Sale Agreement dated August 16, 2005 between
AB Holding Group, Inc. and Chuck Taggart and Glen Taggart.  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Rule
13a-14(a)/15d-14(a) Certification of Chief Executive Officer  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Rule
13a-14(a)/15d-14(a) Certification of Chief Financial Officer  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Section
1350 Certification of Chief Executive Officer and Chief Financial Officer  </FONT></TD>
</TR>
</TABLE>
<BR>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>36</font></p>

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>img1.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 img1.gif
M1TE&.#EAB`';`'<`,2'^&E-O9G1W87)E.B!-:6-R;W-O9G0@3V9F:6-E`"'Y
M!`$`````+`4`!0!^`=(`A```````````@$U-36AH:'Q\?)J:FHR,C("`@*>G
MI[V]O;*RLMG9V<?'Q]#0T,#`P.'AX?#P\.GIZ?___P$"`P$"`P$"`P$"`P$"
M`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P7_8"".9&F>:*JN;.N^<"S/=&W?>*[O
MY>3_P*!P2"P:C\BD<LEL.I_0J'1*K5JO/A%VR^UZO^"P>$QN:LOHM'K-;KO+
MY[=\3J_;[]@X?L_O^_]D>H"#A(6&AQ."B(N,C8YABH^2DY2519&6F9J;A9B<
MGZ"A;IZB9@$_<:1,JD&"(ZAG6K&G0R4&1*Q&"0,!!`FPI:.TP5*IPYX0!TNY
MP$`C#!,,KXFGL[BT#0&W0LQ#!001$]G*U$_)Q%/=Z+7'PT?JIJT!`PH3"KSN
MY?K<[5L*`=#X/8&WSEF^@LOZ90D@H8"(`Q(6GEG`:P&L`P7T40P`T8>$`R((
M0'/%4=D!D+1D_Z4\Y2#`KV;['CH<MK'C!`,B+`9Q>,W!@`$./*(4N1`C"81.
M""(]`8O`*0D!,B[T\:]!MGK4`FI9$*`!5'(%H$$=L&_AOT3_5NH3`?5ELW]N
M18RDQ=4KQPD)NK;$"E->`J@$?(2=,':AUH-(D2A%:`P6KP)!#?IPFB5PS%.\
MAD!8,+,L-0@!6H)6.VN`5(,CW*ZEE1E(ZU[RKDWUL;GSY<3Q<">$*<*G"*#-
MK-U6U-(`U&KY9%&V-DL$A-CL9I,\"H1R='W%C\_VK-O(XH*-9S/(2W:V==BW
M6TLN1W*"T\#,5[8\O1WZ&?4^\`?A&M"^VM5]=><=8@(*M)T(#DD0`?]Z^E1U
MU8&GU`655+Q(D`URL>7U2WQ3<<47=]+1U=6$>(W(X`\#@"/.70!.4.&%$!:H
M&($R\M9.!#A%%9$/\_E`T0`ZW38!5QSMZ!.0*L6630,`"D?``.'4MUX<1-J4
M5Y%#7$D`7\(=2>1V/=8HFYADECG)=V:FJ28;:*[IYIM@M`GGG'12(6>=>.:I
MQ)UZ]NGG>G\&*FA2-`YJZ*%2(JKHH7PNZJB,C3XJ*6Z13FKI.I5>JJDHF6[J
MZ2:=?BHJ):&.:FHCI9ZJJB&IKNKJ'ZV^*BL>L<YJZQRUWJHKFX7NZNLBN?XJ
M+"2]#FNL'Z%.DP4LRDK$[+'0!FA%-8DDFAS_*M4N&^VQG5*[[$'7?HOMML8F
MJT>XSF![#+GE%AN%M]F.FZZXVK(C`@+XYJOOOOSVZ^^_``<L\,`$%VSPP0@G
MK/"^F+H+!;SN(+;NNN\\8/'%&&>L\<8<=^SQQR"'+/+())=L\LDH8XQ`PUU0
M2W&]\U;[\B4IUVSSS3CGK//.)J^,CKD1QZRMLLW2S//12">M]-(W^TQ,J0Y?
M$0#35%=M]=4\.QU,L&),C?778(<M]L5:E\(U)&.GK?;:.Y?-:=2`>,WVW'37
M[;';H9P=I]U\]UTWWJ#H_87<?A=N.-:`?R*X%X0?[OCC1R?.R>(M0V[YY3A+
M#BK<L&+N^><D:ZX)_^5<-`[ZZ:A;+'HFI&]A>NJP8[ZZ):WG$?OMG\]>2>U2
MX^Z[Y;J3RCFROQ=_>/!G#M_'Z\8W+[8`9+-,JO/4JPV]ZM*?6?WV8%^/_<_*
M\\$\]^0?[?T#R$O"^[3EM[_T^>D_LGX5X[MO?\KP9Z_^_?SGG#_XN^N?`/&7
ML?@Y8GYV&J`"2W8^].DO#^?B!C_:X:[Z+?""%VN@`5$5OG?(3$JN4)>\C(;!
M$FY,@P^<5KS@]<&804PQ)HQAQE`(P)9%4(0N7"$,9<@W`32P>QK;(".@IL.A
MM0*'\9H@#Y;(Q"8Z,04^?*(+!&`"(0*K@XHI(C6:-;$1XH*'=KO>#['V0_\K
M(J);+4PBS'0XLR^"D6YB3%L94U@$D$R`'.^X80ZW^*P=OI%MWAMCU<9HQD,P
M(T>)P*-WTF#!/UKM?(*D&B'I6`NH$`:+@W/DVAH8R?=MK)"L<AA#3I&-/312
MDTSC9-@F64,D7$D$JJG#*5%ILDYF4&.V3!HK[27%7IH@446XTC9H14N>02^7
M8\RE,3F6.$S>X3_:*Z;.XM@Q02IS9X)L)NV`.00)6(8`.WJF-/UWRVJ:LY8H
MR^8EM@FB(9S',N(<Y\T@><X3GLR']V3F.G?'36[LR)+$E&?-5&E/CUT38_A$
MYR?WF8XC9HN%J)'8*OH9!)0\Q)0"'2@N"UI/D1W_4Z$+Q07]%()$AZHQ*10%
M`HY$8!R,9C2?'"VG04GV409V3)MV4DA*'FK2B5'06?-"8#I`YL.B%E6@D23H
MQP[Z`&J.+)(X;:C+C`A1+<JB7JD(:K&00YUX=A2A1@WK46/827J&[*!.]>A-
M&2K6MK957-[::22ZRM,D]F!<K.!JT>A0/Z;B,J&K#"-1+896M1+6IOH4J9T^
MN%/&2O"QC5TC7AU&'_%Q#+`V&RL9P[K)P3;UJ88];&A#6@OZ&9&G595H76.B
M5244X#G$VZCYR/A7OTY3K4Q5IEG/>C>&%N.T<EVC:G_*Q]8FX9<!1:C2;)O.
MF0)QM+SUK&BCF]C2\K.=_TH4:A9FF,I!+M5\8E4N:&DJ79E^=ZV*)55*627>
M[GJRO`9-JF;!.E^DV?*'U^QD5,^TWDX$=KG4=:Y;F:O+\[;7N>BUKGJQ^P-O
M]B*<+GWN;*$KV\?=M\((KFYV?<GA]3HE)+']+S81&U,+9]B\E_T8*#NQU>>`
M)L0B)B>)#PRYI*;8P!HVVU:]Z-7G&36SS:5QC;^*8@SG^&TS0NZ`@B:T/A:W
M8G`,+X7'.UW/69/(12;MUK;*E$7&-6+@0N)6#^?6$B.6P'.[\HW-K&4=MXR-
M)<6J%DEX.<ZB.8-W!B2;L_S9D*V8$$!K<ICI==*(<EB*5#RTHFN0:!(T&@6/
M%O]!I%7PYT$0L8V#3N.87RI8[IZ8J96.FS/7B>G':MJ/G$ZSD3'LUU##:M02
M?&&3X2Q9;J2ZTU5>LVU=C2Q83U#06B4NE&^M:CYSE[F\7IZO31T(8L-1R/9$
M-B6!Y>QGY_JR!$ZV^);]AEE66Y+7CMRTS_AM/?=Y:=HV);='46X]Y]G/XS9D
MNSO[;I"EFU;K;H.WYZW+>ML[WNSEMQRK=N]GYIM-`A\XU0IN!^V^*^'58[@L
M#[Z&?4/<<Q+G*\758/&+7R[CN-HX(SW>/)#+P>$/([GQ3-YMD:.AXRIW',N%
M$<"8^V[F^G8Y'&Q^<X#[E^>WPSFO:@YTV`F]XCIO=M'_C>YS0"^=Z:W<W]-1
M=W2.)WT,,)\ZW:K.R*0331%?KZ#63\?UE^M\JC/K8JU;,7;0E1T.9[=J#MM8
MB[;GKNDY%;:<Z<ZL1?O][X`/?`G>'HBK3Q5F:B^T21<_:\432+6,;SSD(U_K
MR3>^T(]/[^4MS^/*XWVQLMY[YRGO>`63GO.*Q[SI-[_ZM6>>V:R'?>=?+_O4
M3R[NA[>KF+/8>L_W7O6U]_WI-3][XA?_]Z@'?O"3KSBO&X-B87_S4H9HJ&!=
MG5VC0CGVR:7][4>K^][GUO7#3_[KE/_\74>_^N&^_O83R_VFA3^@KIC3=#A3
M3OB_/R9'/7Y`]U]J_:58'119_P,1@-:%1?BW=GLR4F0"?HMD@`XU@!#84^'#
M=\>U$A6H@!<(>F+B@+Z5@5LT/%]6@!,H+Q((31,5@@6X?T#5'1X8&WJT@7*V
M)UPU>K*1)'!S5:<E@UE%@[RQ&Y<W($/S?]MF2-]B@0<8?)#%6@LH,T@(63[5
MA%PDA9$E2O61@U/Q"D2(;T;X4!@BA7@%ANP1-56H@13HA,L`#`3X@&-HAB;(
M9,?5=QVXA0\C$57E02&X5_MT%)R#@5_8A"T"B"I!AL'1#7!H!O-7(!X8'K8'
M'4S(@T_HB#T(B>S1B"%2B3Z(@ZOPAY98B$&8&`[X'Y$X63/(>SK8B5Y8BGB8
M)&XXA/^/N(I$DX8JV(JI.(F00H>"^(56F(5KR%#4L8MMB(HZ18O#*(QJ2(LK
MI(7`B(.XJ&YQ4XB$&"+1.(;3V!RR*"1Q&".Y"(%,AH4F:";:1QIWN(<8XHV:
M2(68B(ZGF(WGJ([C>!TQF$=ET8ROMCP_>(VVR'NOB(?[R(_YZ(^CZ$(!65?_
M*(#].(?*%E2;J)!`N(,SPI`^&(8-N5HRZ)!L*(Z"&(QI$HYVU8<=B8A@-E$A
M*9*)F$4CF88GJ8^'J)(V6".A&'\-%9,R^5N+18(4F9&HZ(+TJ(\T.9-U6),^
M^9/OPF`FN9.B!F@PV9-#"91*N90KB(!$Z9)&*7\5^2Y3>93_5(F43/DF+YB5
MIM*57BDJ8!F6GC*69*DI9GF6EI*6:BDI;-F6CO*6<*DH<CF7C'*5>0(:VX`3
ML&67$^E].!$!"S),?AF1Y+<@"O`/X2!,'N$4P$$-!1`6,V$37EF7,I(`!.`+
M)2(!7^$>$3$/"_$<O!`!)!*6EED@"Q(`X?!+$<`9PC&93$*6IZF(*.@>`3`:
MV[$9[R&;>-DG9X`3=J$,;/&:#)$(Y5&9O:DG<7`EY-`25S(;*Z4CO%F8U!F5
MU4F5LWF=>)*=VDDGW-F=</*=X.DFXCF>:E*>Y@F.R9F>=+F>['F7[VF:[AF?
>@H*>]$F;]XF=\YF?OBEX_OF?`!J@!@(ZH/X9`@`[
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>img2.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 img2.gif
M1TE&.#EAH`'I`'<`,2'^&E-O9G1W87)E.B!-:6-R;W-O9G0@3V9F:6-E`"'Y
M!`$`````+`4`!0"6`>``A```````````@$U-37Q\?&AH:)J:FHR,C("`@*>G
MI[*RLKV]O<?'Q]G9V=#0T,#`P.GIZ>'AX?#P\/___P$"`P$"`P$"`P$"`P$"
M`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P7_8"".9&F>:*JN;.N^<"S/=&W?>*[O
M?##]P*!P2"P:C\BD<LEL.I_0J'1*K5JOV*LHR^UZO^"P>$PNFW_;LWK-;KO?
M\#@Q+:_;[_B\ODS?^_^`@8)U?8.&AXB)BDJ%BXZ/D)%RC9*5EI>85)29G)V>
MG)N?HJ.D@Z&E0A`$(@E`":RNL!,0!B(&1:\!K4$#/D(C0,!3C:<3PL9T6VF;
M);=%Q4@)O06[T*A5UJ@%`1`0NA,*`0P,`0K@XN3FM1`1`0=#X>/E0.2^02,-
M$PW'31'OR$.*X=-W3)DO9K[(.0MH[PF!`A(FD'N738B_:TLJ8MRR"@V!"1V-
M?;S7\$?(`",G_VPKB6S`@@D+>K%D=)"EP``N8<IDB&8FP)Y=%@3(]\LG$HVE
MD)9J-^"G0:!`A"X,5O.'@UP,#[S3VD=!+W,](PP8X`"900=CRP+<%E%"@`)4
MM4[@:N\I0`??J.I%=F!D&J_N(/RH-6](R*)HR?Z`<$!$@7PB^IHUBG%O923;
M&#CUL<S>-K@\?Q9H9S.`4&-"[0F5]Q(9`V]--R?P!GI+/(F%D9TVG8QS36^[
M]@JM-E1O/&_O7C'`VYKD'%VT3>:#C8SHS\M&E(YJ_*_SYB`*0V]I0+%T.[RD
M@6Q#4[OJ]^_MMA8/&P!][\T#4E(=$;S/EEY"`&@,:,Z)9T\$"JSB6_^!V#U#
MV67DQ/:==PSNM<4!91'#V7KWO4?AA[[TXI:$`+VU(%"=B1!!4<\Y5X@)0ZQG
MH%4!&.#-B5`UV**.0HPHF$D'?722?L;$!LR0D[WHPV?7R?@65"!"Z4LMC4VU
M!9/W=887D93XYX.`0(!)1#C66>B>73GR6*&:R@6Q6CHPH3-/8Q#`*<2;N5VG
MURNMT(%G:U%ZZ`M>(J@%%)_7V66;:6NFN>AK*$V@7'1##``1;N5!U4N=:.JI
M9IIJRB0,8<&1NEAC`X`UA*F-;D&.9EV-I2J%6PJZ7T1ZO9KHB6D4,`"NGCKJ
M2SB!_9#+`3\.D4L!@+J7&+%ZUOJI9=/RN`K_D=5F&ZRVUT#0BZ'<9JM=N)$X
MUARYU8Z+[KKL)J)NN_#&N\>[\M9K[QOTWJOOOF/DR^^_`&OQ8,`$%]R%OP8G
MK/"."S?LL!0(/RPQP!%/;/&]%5^L,;P9;^PQN1U_+'*Z`X]LLKTAGZQR92FO
M[#(I+;\L<R<QSVRS)37?K/,C.>_L,R(]_RQT($$/;;0>11^M-"$E+^UTN4T_
M49"7I=65]-,FA\R9,5RCX?778&\--M9D)Z%UU[\$=$\P:$==]M-GSV33VE[7
M]?;=V;G=!#]H@VJWW46)@,#@A!=N^.&()Z[XXHPW[OCCD$<N^>245V[YY9AG
MCCG#!_<M-]U<`S['_P.DEV[ZZ:BGKOKJK+?N^NNPQR[[[+37;OOMN.>N.^X(
M<([%UJ*GS7;=PX^^^_'()Z_\\LPW[_SSQ_<>&A?`C]TVZ&+W_0OTW'?O_??@
MAR\^[-*SZ(4P)>P7=F^4!3#^^_#'+__\])??Z.]FN$___OSW[___KK,?M1RA
M/P`:\(`(3"#T!`BJ1110@1",H`0GN#H&;LM=%,R@!C=H0`M>[0L/Y*`(1TA"
M[GE0;_,JH0I7R$+=G5`2(6RA#&=(P]*]L%PUS*$.67A#2,1PAT`,(@1[2#WV
MD:1JZLN.$)?(1`02$7_5^UKP_E:\@#3QBO03@`":^$0M:$^*5:2B]>Z!Q?\R
MBD^+6WQ`&H7812MDCVY39%OPMF?&.D)/BZA;(Q#;Z,87%:\A8OQB#P9)R$(:
M\I"('($642"`1#KR!7QTH^?^B+WK/<..F$0>&ENG1QU&<ABA"Z,HB3?&8&3R
ME+?#(^PZ6<-/0BR4VHLC*;]H2E3:,G:L=%TN9>A*B*7(B&T#YB5O24S6[9*3
M>_1=%E`(L6(Z,W7'1*8GE:F('S[SEM'4Y32GQ[-K>C.;VFPE-3'H36>",YPT
M[*4@K%E.3)X3G;P<)]#:6<QWPI.'\CP$.^E91GN^SI\25"?1^&E+@$JSA0(%
MQ#X)RD2#WK.$"?W#0ADJ1(<^=(01W9M_CJ@DJ[7_CZ)VM.@_\<G-)"Q@/?]X
M!BR[)#Q8TA(-(*VC2"_*P802BS,I55L@01<V2QHOIE><Z4A5F-#Z<,T;V8FE
MVEJ:/:-,%*@T%.I025A46$F$1`P!Y%(K.<<D/?*K8`VK6%/0R$26=:P\L&D)
M5*72KLYMEDZ%:A.EBDNJYG,(,<$)6W7JTU(&,JYR72)=5VG7DAZ!,4`@0++X
M.L?/P56)@0WB8.LJPH0V)A@YS2I/)]D3CQ[AJ9$MX60IN\&B)@NIG\U?:'<X
M6MFU%GP)'8!F?D`..X!VM1Q\+6DIJ%82[!5?N*VA;G<[P8@")E5WN&UP*3A<
MXD8PHRE<K@R;ZUP%JM,W_^DCA'1;2%W7\O:N=8.1=K>[PNYZ-Z#@72=Y56C>
M\SXWO2;Q@W+7>\#VNK=_N;1LF9)+WQ':=W:JG-\F4U=4\3I(JUM-HED^VU\1
M_I=V`ZX=&@.,2PH3&+Y>=>I*2\/4OM*QP1E\<"HMO+H)GV["QS3QZZ#+B.MQ
MF*M5_#!!44SC&HOX>#?&781-IV)=VIAV`F75492ZMI+\%;+M[+%K25S?#=88
M?NHDC"R.LM$B=]BM:,VR#2:L`S1JN05G_;*8;W#=V9ZFQ;(TLAQC3,9Z,AG'
M.9XJ5*^[V3FX%)`D@'$I84I,^^Y8P*&E,YL9.V@U/W:8J'SS\Q0-OCBG,[TI
M^/]LE87GV<XR.-'Q<W3I-!U/PS[G!$/F`Z;EQ^@[XI;%>9AO#CG-X_&QNM/F
M\V$F7]WJ1B\7U7A0]0QI?6(_2Q?7_)4I`LW+:UC?CYS]5"!UBVWL`3JPG\PN
M\7"C3=)8=S.H(5X>M:M]['G.U<G)VS:WG5W-;^?6QNA.=W^!+6D$UWG!ED:R
M9$&,27:WM6M*VFI3Y<U:>M<;PWMSL96O/&@^`U'<_H8MP)GP1D'JV\-M[G?"
M[6CO`]?YK7?.ZI@=&>:->_SC(-=!Q>\]1HSO&]'"G7@F1YZVDU]\S7LVA@X1
MKG*%>QH;&6\I);M:RZC6?.4+9_BD*1EO>*.<A:7^.1O_@\YPU4Y7Z:=D.7"Y
M"_6H,SW5>?PQ!&E>=9M;FX`5IO$=TZWUKO_[YMX><=)]C&*SQU3J;M"UZMIN
MS">[/;)P;X/<V5[VN]_ZZKGVN^!OEW<V['WP=R_\IX^HV:+_%/&0#R#@`RXV
M6>;\\9'/_(71ODS.>M[E5M2\Z%&G^)97<N<%E_GH5T^ZT@>.\7I^J>I9/WK7
MF[ZO1PY<R'?/^][['JV3;WKE1WGY!*?6;"T.M?*/OWSF.S^IR&^^2J-/_>=/
M7_IVQK[QH8_]GD71\J#7N?6SK_UW;Y_\XT<_]],O?O5?G_WM=[_\ST]_\\=_
M_O$/&C_0IV"^W;_^]A>`,2>`_P.8>O]'@+)'@"6S@!F1?.6'@`/#@`XX?D7#
M3'AS@9*&@1H(-!:X@1ZH!A_T@2(H="-8@KG6@2:8@LN$@BK8@IK`@BX8@U(#
M@S)8@S3!,S2X+S"8@SHX##RX!@<A"CMX/MCP@_*E"43H2P14@`$G29WW@IT#
M2CR8@T:8@#=(/4KH0)W%@C_8A44H,$P8:O[G!%[XA%GXA5:8@3QC@&93AE!P
M)EX$ABCH'F?HA%$`AS@GAW=8A6+`#'F8A7.H%U28AAFA-U1#B`]XA5PHB))$
MA188@J^4*&&X>(B8@8%(;H5((60XA@WX'GO(<YM8B>\W+GEV053F+Y!XAV;R
MB%#21_^J2&1DB(D.2(J,&(G)X(IO&&,H9#61:(HD:`CN)C7#TW!"AW&QZ'F_
M.(EPA(#HUX%!Z%)OZ$>Y.#:&&(R=:(W1J$_82!-!2(=-YRG.*$6LJ(R""(IM
MR(RO5WGC.'3'B&_,9(YY(XE0J(ULF#<[17W=*(N<,X?`@",:Y11G^(C+((H]
MM6'_6(_VV(WOR"MH"(R=0GDU$37\YXW5%TROB&\^:'31Z(\0J9'<2$H:X6[:
M(3K\Z)%[R($$J5,">8^=*$?AN%+%R(M?N(CJ4A`I.4FT6'RG*)-@"(R^!#@C
MN1GCJ(_-.)#*&)&<^(T;.8RLF"(7Z8ODQW\(*8ZEB(L2E2__#'F3H4.#_)@E
M0SF5L(>$1AF.J/B355&3`!B*$@66T)>4%B>.=MB.7R>,H$2.;:D4-@F5+=F$
M<TF7Y\.'O[.-[8@463F(?NF6?CF#Z,A\>`F06IF645DQ@)F*2OF8;+E4B'F-
MJGB+^-.+EGF9F%F6-XDC;KB"2,.9G7F1J%B3@ID_1FF&JLF5I-B:M@68=8F:
MDW"5^-**N29?MAF8J39+O=F;E(F1OXF$R:67DW"<2JF.\L*<W.><\0*=/9F;
M,*<T6D6=(U.<3,6=**-@(NB=B[DSVKDRXCF>.E.>)W.>Z'DSZKF=[]F69?.,
M*LB>F?DS]WF![&F#>+.?_/DV_OF?_V03H`(*-_%9H!Y(H`B*G0>ZH!BHH`XZ
M-!`:H?C9H!0*H!;ZH"(0$:01-1<QH=H"HA):*+A1$0\YHA>ZA]0P`0:P$N#P
M%53A``1`%B;@#XJA"I&Q6"\CHD+#"G!!#2+P)SVQ`-1A$+/Q).OA#=ABGAFJ
MG_41`.?A&`?1'BC"*U^"$N`R,SQ:H=ZP#J48)8KB`V@A`HIA,UOJ,_^!$\C@
M)%1:(E8*!`WP"ECE,F=*GCY0"[<0I'+2+%7Z':L``6Y!(#)3I^GI`[IB&[)B
M)A.P)=XA`82A6.[9I"GJ-(0ZJ>LIJ99Z-)6:J2*SJ9SJ,9[ZJ1H3JJ)J,:1:
MJA)SJJCJ,"RJNJH+TZJNFC"P&JL%,ZNT&C"V>JO_DJNZJH.8VJM,^GO".JS$
)6JS&FD@A```[
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.11
<SEQUENCE>4
<FILENAME>ab_10qex1011-50930.txt
<TEXT>
                                                                   Exhibit 10.11

                               PURCHASE AGREEMENT
   (This is a legally binding contract. If not understood, seek legal advice)


Investors Realty, Inc., Broker                                   August 29, 2005

1. ADDRESS: 190 Grant Street, Blair, Nebraska, Zip Code 68008.

2. LEGAL  DESCRIPTION  (PROPERTY):  Tax Lots 192 & 252 SEC  7-18-12,  Washington
County,  Nebraska including all fixtures and equipment  permanently  attached to
the Property.

3. PERSONAL PROPERTY: The only personal property included is as follows: The two
(2) paint booths on property.

4.  CONVEYANCE:  Seller  represents  that they have good,  valid and  marketable
title,  in fee  simple,  and agrees to convey  title to Property to Buyer or his
nominee by warranty deed free and clear of all liens,  encumbrances,  or special
taxes levied or assessed, subject to all building and use restrictions,  utility
easements  not  exceeding  ten (10) feet in width  abutting  the boundary of the
Property, and covenants now of record.

5.  ASSESSMENTS:  Seller agrees to pay any assessments  for public  improvements
previously  constructed,  or ordered or required to be constructed by the public
authority, but not yet assessed.  Seller is not aware of any public improvements
ordered or required to be constructed but not yet constructed.

6. PURCHASE PRICE: Buyer agrees to pay One Million Five Hundred & Fifty Thousand
and No/100 ($1,550,000.00)  Dollars on the following terms: $50,000.00 (Deposit)
deposited  herewith as evidenced by the receipt attached below. In the event the
offer is not accepted by the Seller within the time specified, the Deposit shall
be refunded.  In the event of refusal or failure of the Buyer to consummate  the
purchase,  the Seller  may,  at his  option,  retain the  Deposit as  liquidated
damages for failure to carry out the  agreement  of sale.  Balance to be paid in
immediately available funds at closing of the sale.

7. APPLICABLE  CONDITIONS:  This agreement is conditional  upon the happening of
each of the following  events.  If each of the same have not occurred within the
time  stated,  this offer shall be null and void,  and any  Deposit  returned to
Buyer.

8.  TAXES:  Urban  Taxes:  All  consolidated  real  estate  taxes  which  become
delinquent  in the year in which  closing takes place shall be treated as though
all are  current  taxes,  and those  taxes  shall be  prorated as of the date of
closing,  and all the prior years' taxes,  interest,  and other charges, if any,
will be paid by Seller. If applicable, any "Ag Use" or "Greenbelt Recapture" tax
will be paid by the Buyer.

9. RENTS,  DEPOSITS AND LEASES, IF RENTED:  Any tenant deposits and leases shall
be assigned to Buyer at no cost.  All collected  rents shall be prorated to date
of closing. Copies of all current leases shall be provided to the Buyer ten (10)
days after execution.






<PAGE>
10. SANITARY AND IMPROVEMENT  DISTRICT  (S.I.D.):  Buyer  understands  that this
property is located within S.I.D.  #__________ and acknowledges a receipt of the
most recently filed S.I.D. Statement.

11.  CONVEYANCE  OF  TITLE:  Seller  shall  furnish a  current  title  insurance
commitment  to Buyer as soon as practical.  If title  defects are found,  Seller
must use  reasonable  efforts to cure them within a  reasonable  time.  If title
defects are not cured  within a reasonable  time  period,  the Buyer may rescind
this  agreement and the Deposit  shall be refunded.  The cost of an Owners title
insurance policy shall be equally divided between Buyer and Seller.

12.  CLOSING:  Closing will occur not later than September 30, 2005.  Time is of
the essence. Possession shall be delivered at closing.

13. ESCROW CLOSING: Buyer and Seller acknowledge and understand that the closing
of the sale may be handled by an Escrow Agent and that the Broker is  authorized
to transfer  the  Deposit or any other  funds it receives to said Escrow  Agent.
After said transfer, Broker shall have no further responsibility or liability to
Buyer or Seller for the accounting for said funds. Escrow Agent's charge for the
escrow closing shall be equally divided between Buyer and Seller.

14. STATE  DOCUMENTARY TAX: The State  Documentary Tax on the deed shall be paid
by the Seller.

15.  INSURANCE:  Any risk of loss to the  Property  shall be borne by the Seller
until title has been conveyed to the Buyer. In the event, prior to closing,  the
structures  on the Property  are  materially  damaged by fire,  explosion or any
other  cause,  Buyer shall have the right to rescind this  agreement  and Seller
shall  refund the  Deposit  to Buyer.  Buyer  agrees to  provide  his own hazard
insurance.

16. WOOD  INFESTATION:  Buyer agrees to pay the cost of a wood destroying insect
inspection of the building,  attached and detached structures, and Seller agrees
to pay for any  treatment  or repair  work found  necessary  for  issuance  of a
termite warranty and/or treatment of any wood destroying  insects.  Buyer agrees
to accept the treated Property upon completion of repairs.

17.  SMOKE  DETECTOR:  Seller  agrees to  install,  at Seller's  expense,  smoke
detectors as required by law.

18. CONDITION OF PROPERTY:  Seller represents to the best of Seller's knowledge,
information  and belief,  there are no latent  defects in the  Property.  Seller
agrees to maintain the heating, air conditioning, water heater, sewer, plumbing,
electrical  systems  and any  built-in  appliances  in working  condition  until
delivery of possession.

19.  ENVIRONMENTAL:  Seller  represents  to the best of the Seller's  knowledge,
information and belief, there are no conditions present or existing with respect
to the  Property  which  may give  rise to or create  Environmental  Hazards  or
Liabilities  and there are no  enforcement  actions  pending or threatened  with
respect thereto.









<PAGE>
         THIS OFFER IS BASED UPON BUYER'S  PERSONAL  INSPECTION OR INVESTIGATION
         OF THE  PROPERTY  AND NOT  UPON ANY  REPRESENTATION  OR  WARRANTIES  OF
         CONDITION BY THE SELLER OR SELLER'S AGENT.

20. AGENCY: The REALTOR(S) involved in this transaction are:

         Clint D.  Seamann  and Lee  Ehlars  are  acting as  limited  agents for
Seller.

21.      BROKER COMPENSATION:

         Buyer and Seller acknowledge that Investors Realty,  Inc. is being paid
a fee by Seller and this fee will be shared by Brokers  based on their  separate
agreement.

22. OFFER EXPIRATION:  This offer to purchase is subject to acceptance by Seller
on or before Thursday September 1, 2005 at 5:00 o'clock p.m.

WITNESS:                                  BUYER:

/s/ MATHIESON                             /s/ JOHN BUHLER
--------------------------------------    --------------------------------------
SS#/FED. ID
            --------------------------

ADDRESS:
1201 Regent Ave. W.
--------------------------------------
Winnepeg, MB  R2C3B2
(503) 654-5700


                                     RECEIPT

         (NAMES FOR DEED) RECEIVED FROM ________________________________ the sum
of   _____________________________________   Dollars   ($________________)   (by
______________________)  to apply to the purchase price of the Property on terms
and  conditions as stated.  This receipt is not an acceptance of the above offer
to purchase.

                                        INVESTORS REALTY, INC.
                                        11301 Davenport
                                        Omaha, Nebraska 8154


                                        ----------------------------------------
                                        Agent's Signature













<PAGE>
                                   ACCEPTANCE

                                                               September 1, 2005

         The Seller  accepts the foregoing  proposition  on the terms stated and
agrees to convey title to the Property,  deliver possession, and perform all the
terms and conditions set forth, and acknowledges  receipt of an executed copy of
the agreement except for the following modifications:___________________________
________________________________________________________________________________
______________________________________________________________________________.

WITNESS:                                    SELLER:

/s/ MICHAEL W. FOSTER                       /s/ MIKE WALLIS, CFO
---------------------------------------     ------------------------------------
SS#/FED. ID#
            ---------------------------


WITNESS:                                    SELLER:

/s/ MIKE WALLIS                             /s/ LOUANN TUCKER, Sec.
---------------------------------------     ------------------------------------
SS#/FED. ID#
            ---------------------------

ADDRESS:
2320 SE AgBag La.
---------------------------------------
Warrenton, OR 97146
---------------------------------------
(503) 861-1812
---------------------------------------


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.12
<SEQUENCE>5
<FILENAME>ab_10qex1012-50930.txt
<TEXT>
                                                                   Exhibit 10.12

SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 1 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

      This has been prepared by submission to your attorney for review and
   approval prior to signing. No representation is made by Licensee as to its
 sufficiency or tax consequences CBA Text Disclaimer. Text deleted by Licensee
 indicated by strike. New text inserted by Licensee indicated by small capital
                                    letters.

                                                           Date: August 16, 2005
                                                                ----------------

         The  undersigned  buyer,  Chuck Taggart and Glenn Taggart agrees to buy
and Seller agrees to see, on the following terms, the commercial real estate and
all  improvements  thereon  (collectively,  the  "Property")  commonly  known as
Ag-Bag,  in the City of Warrenton,  Clatsop  County,  OR,  legally  described on
attached Exhibit A.

1.   PURCHASE  PRICE.  The  total  purchase  price is Eight  Hundred  and  Fifty
     Thousand  Dollars  ($850,000.00),  including the earnest money,  payable as
     follows: (check only one)

     |_| All cash at closing,  including  the earnest  money,  with no financing
     contingency.

     |X| All cash at closing,  including  the earnest  money,  contingent on new
     financing under Section 4a below.

     |_|  $__________/___%  of the purchase price in cash at closing,  including
     the earnest  money,  with the balance of the purchase price paid as follows
     (check one or both as applicable): |_| Buyer's assumption of any underlying
     note and deed of trust, or real estate contact, under Section 4b below; |_|
     Buyer's  delivery  at closing of a  promissory  note for the balance of the
     purchase price,  secured by a deed of trust  encumbering  the Property,  as
     described in Section 4c below.

     |_|  Other: _________.

2.   EARNEST MONEY. Buyer agrees to deliver the earnest money $8,000 in the form
     of |_| Cash |_| Personal check |X| Promissory note |_| Other: __________.

     If the earnest  money is in the form of a promissory  note, it shall be due
     no later than

     |_|  __________ days after mutual acceptance.

     |X| Upon removal of the inspection contingencies in Section 5 below.

     |_|  Other: __________.

     The earnest money shall be held by |_| Selling Licensee  |X| Closing Agent

     Buyer shall deliver the earnest money no later than:

     |_|  _________ Days after mutual acceptance

     |_| Upon removal of the inspection contingencies in Section 5 below.

     |_|  Other: __________.



INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 2 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT


     Selling Licensee may, however, transfer the earnest money to Closing Agent.

     If the earnest money is to be held by Selling Licensee and is over $10,000,
     it shall be deposited to: |_| Selling Licensee's pooled trust account (with
     interest paid to the State Treasurer) |_| A separate interest bearing trust
     account in Selling Licensee's name. The interest, if any, shall be credited
     at  closing  to Buyer  whose  Social  Security  or  taxpayer  ID Number is:
     __________. If this sale fails to close, whoever is entitled to the earnest
     money is entitled to interest.

     Selling  Licensee  shall  deposit ay check to be held by  Selling  Licensee
     within 3 days after receipt or mutual  acceptance,  whichever occurs later.
     Buyer agrees to pay financing and purchase costs incurred by Buyer.  If all
     or part of the earnest  money is to be returned to Buyer and any such costs
     remain  unpaid.  Selling  Licensee or Closing Agent may deduct and pay them
     therefrom.  Unless otherwise provided in this Agreement,  the earnest money
     shall be  applicable  to the  purchase  price and  shall be  non-refundable
     except where a condition to Buyer's  obligation under this Agreement is not
     satisfied through no fault of Buyer.

3.   EXHIBITS AND ADDENDA. The following Exhibits and Addenda are made a part of
     this Agreement.

     EXHIBIT A - Legal Description
     |_|  Earnest Money Promissory Note, CBA Form EMW
     |_|  Promissory Note, LPB Form No. 28A/CBA Form N1-A
     |_|  Short Form Deed of Trust, LPB Form No. 20
     |_|  Deed of Trust Rider; CBA Form DTR
     |_|  Utility Charges Addendum, CBA Form UA
     |_|  FIRPTA Certification, CBA Form 22D
     |_|  Assignment and Assumption, CBA Form PS-AS
     |_|  Addendum/Amendment, CBA Form PSA
     |_|  Back-up Addendum, CBA Form BU-A
     |_|  Vacant Land Addendum, CBA Form VLA
     |_|  Other  __________
     |_|  Other  __________

4.   FINANCING

     a.  APPLICATION  FOR NEW  FINANCING.  If payment of the  purchase  price is
     contingent on Buyer  obtaining new  financing,  then Buyer's  obligation to
     close  is  conditioned  upon  Buyer  accepting  a  written  commitment  for
     financing.  Buyer will not reject those terms of a commitment which provide
     for a loan  amount of at least  __________  or 80% of the  purchase  price,
     interest not to exceed ______ percent (7.5%) per annum, a payment  schedule
     calling

INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 3 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     for monthly  payments  amortized over not less than  __________ (25) years,
     and total  placement fees and points not more than 1.5 percent  (_____%) of
     the  loan  amount.   Buyer  shall  make  immediate   application  for  said
     commitment, pay required costs and make a good faith effort to procure such
     financing.  This Agreement shall terminate and Buyer shall receive a refund
     of the earnest  money unless Buyer gives  Seller  written  notice that this
     condition  is  satisfied  or waived on or before  __________  (30) days (60
     days, if not completed) following mutual acceptance of this Agreement.

     b.  ASSUMPTION  OF EXISTING  FINANCING.  If payment of the  purchase  price
     includes  Buyer's  assumption of a note and mortgage or deed of trust, or a
     real estate contract,  Seller shall promptly deliver to Buyer a copy of the
     underlying debt  instrument(s) to be assumed,  and Buyer shall be deemed to
     have  approved  all of the terms of the debt  instruments(s)  unless  Buyer
     gives  notice of  disapproval  within  five (5) days after  receiving  such
     instrument(s).  If any of the debt instrument(s)  requires the consent of a
     third  party to the  assumption  by Buyer,  then Buyer shall apply for such
     consent within seven (7) days after receiving the debt instrument(s).  Upon
     Buyer's request,  Seller shall assist Buyer by requesting the third party's
     consent  to  the  assumption,  on  Buyer's  behalf.  This  Agreement  shall
     terminate  and Buyer  shall  receive a refund of the earnest  money  unless
     Buyer gives Seller  written  notice  within _____ (_____) days (30 days, if
     not  completed)  of  receiving  the debt  instrument(s)  stating  that such
     consent  is  available.  Buyer  shall  pay any  assumption  fees  or  other
     out-of-pocket  expenses  attributable  to the  assumption of the underlying
     indebtedness.

     c. SELLER FINANCING. If Seller is financing a portion of the purchase price
     by promise note and deed of trust,  unless  different forms are attached to
     this  Agreement,  Buyer shall execute and submit to the Closing Agent:  (i)
     LPB  Form  No.  28A  Promissory  Note  and the DUE ON SALE  and  COMMERCIAL
     PROPERTY  optional  clauses in that form shall apply;  (ii) UCC-1 Financing
     Statement  covering  the personal  property  described in Section 14 below;
     (iii)  LPB Form No. 20 Short  Form Deed of Trust and (iv) CBA Form No.  DTR
     Deed of Trust Rider. The promissory note shall bear interest at the rate of
     _____% per annum, and shall be payable as follows (choose one): |_| monthly
     installments of interest only, |_| monthly installments of $__________, |_|
     equal  monthly   installments  of  principal  and  interest  in  an  amount
     sufficient  to fully  amortize  the  outstanding  principal  balance at the
     stated interest rate over _____ years, |_| other __________. Payments shall
     commence on the first day of the first month after  closing and  continuing
     on the same day of each  succeeding  month until  (choose  one);  |_| _____
     months  from  the date of  closing,  |_|  other  _____,  on which  date all
     outstanding  principal and interest shall be due. The principal  shall,  at
     Seller's option,  bear interest at the rate of _____% per annum (18% or the
     maximum  rate allowed by law,  whichever is less,  if not filled in) during
     any period of Buyer's default.  If Seller receives any monthly payment more
     than _____ days (15 days if not filled in) after its due date,  then a late
     payment  charge  of  $_____/_____%  of  the  delinquent  amount  (5% of the
     delinquent  amount  if not  filled  in)  shall be  added  to the  scheduled
     payment.  Buyer  shall  have  _____  days (5

INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 4 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     days if not filled in) after written notice to cure a default before Seller
     may declare all outstanding sums to be immediately due and payable.

     (NOTE TO BUYER AND SELLER:  If the Property is currently used primarily for
     agricultural purposes, then a nonjudicial  foreclosure/forfeiture remedy is
     available  to  Seller  only by  using  a real  estate  contract  and is not
     available with a deed of trust.)

     d. SECTION 1031 LIKE-KIND  EXCHANGE.  If either Buyer or Seller intends for
     this  transaction to be a part of a Section 1031 like-kind  exchange,  then
     the other party  agrees to  cooperate in the  completion  of the  like-kind
     exchange so long as the cooperating party incurs no additional liability in
     doing so, and so long as any expenses (including  attorneys fees and costs)
     incurred by the cooperating party that are related only to the exchange are
     paid or reimbursed to the cooperating party at or prior to closing.

5.   INSPECTION  CONTINGENCY.  This  Agreement  shall  terminate and Buyer shall
     receive a refund of the earnest money unless Buyer gives written  notice to
     Seller  within 30 days (20 days if not filled in) of mutual  acceptance  of
     this  Agreement  stating  that Buyer is  satisfied,  in Buyer's  reasonable
     discretion,  concerning  all  aspects of the  Property,  including  without
     limitation,  its  physical  condition;  the  presence  of or absence of any
     hazardous substances;  the contracts and leases affecting the property; the
     potential  financial  performance  of the  Property;  the  availability  of
     government  permits and approvals;  and the  feasibility of the Property to
     Buyer's  intended  purpose.  If such notice is timely given, the inspection
     contingencies stated in this Section 5 shall be deemed to be satisfied.

     a. BOOKS,  RECORDS,  LEASES,  AGREEMENTS.  Seller shall make  available for
     inspection  by Buyer and its agents as soon as  possible  but no later than
     ten (10) days after  mutual  acceptance  of this  Agreement  all  documents
     available to Seller  relating o the  ownership,  operation,  renovation  or
     development of the Property,  including without limitation:  statements for
     real  estate  taxes,  assessments,   and  utilities;   property  management
     agreements,   service  contracts,  and  agreements  with  professionals  or
     consultants  entered into by the Seller; or any predecessor in title to the
     Seller; eases of personal property or fixtures;  leases or other agreements
     relating to occupancy of all or a portion of the Property and a schedule of
     tenants; rents, and deposits; plans, specifications, permits, applications,
     drawings,  surveys, studies and maintenance records; and accounting records
     and audit reports.  Buyer shall  determine  within the  contingency  period
     stated in the  preceding  introductory  paragraph  whether it wishes and is
     able to assume, as of closing, all of the foregoing leases,  contacts,  and
     agreements which have terms extending beyond closing. Buyer shall be solely
     responsible for obtaining any required consents to such assumption.  Seller
     shall transfer the leases,  contracts and agreements as provided in Section
     17 of this Agreement.

     b.  ACCESS.  Seller  shall  permit  Buyer and its agents,  at Buyer's  sole
     expense  and risk to enter the  Property  at  reasonable  times after legal
     notice to tenants,  to conduct  inspections

INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 5 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     concerning the Property and improvements, including without limitation, the
     structural  condition of improvements,  hazardous  materials  (limited to a
     Phase 1 audit only), pest infestation,  soils conditions,  sensitive areas,
     wetlands,  or other matters  affecting the  feasibility of the Property for
     Buyer's intended use. Buyer shall schedule any entry onto the Property with
     Seller in advance.  Buyer shall not perform any invasive testing or contact
     the tenants  without  obtaining the Seller's prior written  consent,  which
     shall not be  unreasonably  withheld.  Buyer shall restore the Property and
     improvements to the same condition they were in prior to inspection.  Buyer
     agrees to indemnify and defend Seller form all liens,  costs,  claims,  and
     expenses,  including attorneys' and experts' fees, arising from or relating
     to entry onto or inspection  of the Property by Buyer and its agents.  This
     Agreement to indemnify and defend Seller shall survive  closing.  Buyer may
     continue to enter the Property and interview tenants in accordance with the
     foregoing  terms  and  conditions  after  removal  or  satisfaction  of the
     inspection  contingency  only for the  purpose  of  re-sale,  leasing or to
     satisfy conditions of financing.

6.   TITLE INSURANCE.

     a. TITLE  REPORT.  Seller  authorizes  Lender and  Listing  Agent,  Selling
     License or Closing Agent, at Seller's expense,  to apply for and deliver to
     Buyer a |X| standard |_| extended  (standard,  if not  completed)  coverage
     owner's policy of title insurance.  If an extended  coverage owner's policy
     is specified,  Buyer shall pay the  increased  costs  associated  with that
     policy  including  the  excess  premium  over that  charged  for a standard
     coverage policy,  and the cost of any survey required by the title insurer.
     The title report shall be issued by Ticor Title - Astoria Office.

     b.  PERMITTED  EXCEPTIONS.  Buyer shall notify Seller of any  objectionable
     matters in the title commitment or any supplemental report within then (10)
     days after receipt of such  commitment or supplement.  This Agreement shall
     terminate and Buyer shall receive a refund of the earnest  money,  less any
     costs  advanced or committed for Buyer,  unless (a) within ten (10) days of
     Buyer's   notice  of  such   objections.   Seller   agrees  to  remove  all
     objectionable  provisions,  or (b) within  fifteen (15) days after  Buyer's
     notice of such objections,  Buyer notifies Seller in writing that it waives
     any  objections  which  Seller does not agree to remove.  The closing  date
     shall be extended to the extent necessary to permit time for these notices.
     Those  provisions  not objected to or for which Buyer waived its objections
     shall be referred to collectively as the "Permitted  Exceptions." The title
     policy shall contain no exceptions  other than the General  Exclusions  and
     Exceptions common to such form of policy and the Permitted Exceptions.

7.   CLOSING OF SALE.  This sale shall be closed on or before  November 21, 2005
     ("closing") by Ticor Title in Astoria ("Closing  Agent").  Buyer and Seller
     will, immediately on demand, deposit with Closing Agent all instruments and
     monies required to complete the purchase in accordance with this Agreement.
     "Closing"  shall be deemed to have occurred

INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 6 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     when all  documents  are  recorded and the sale  proceeds are  available to
     Seller. Time is of the essence in the performance this Agreement.

8.   CLOSING COSTS.  Seller shall pay the excise tax and premium for the owner's
     standard coverage title policy. Seller and Buyer shall each pay one-half of
     the escrow fees. Real and personal  property taxes and assessments  payable
     in the year of closing; rents on any existing tenancies; interest, mortgage
     reserves;  utilities; and other operating expenses shall be pro-rated as of
     closing.  Buyer shall pay all costs of financing  including the premium for
     the lender's  title  policy.  Security,  cleaning,  and any other  unearned
     deposits on tenancies,  and remaining  mortgage or other  reserves shall be
     assigned to Buyer at closing.  The real estate commission is due on closing
     or upon Seller's default under this Agreement,  whichever occurs first, and
     neither  the amount nor due date  thereof  can be changed  without  Listing
     Agent's written consent.

     a. UNPAID UTILITY CHARGES. Buyer and Seller: |_| WAIVE |X| DO NOT WAIVE the
     right to have the Closing Agent disburse closing funds necessary to satisfy
     unpaid utility charges affecting the Property pursuant to RCW 60.80. If "do
     not waive" is checked then attach CBA From UA ("Utility Charges" Addendum).
     If neither box is checked, then the "do not waive" option applies.

9.   POST-CLOSING ADJUSTMENTS,  COLLECTIONS,  AND PAYMENTS. After closing, Buyer
     and Seller shall  reconcile  the actual  amount of revenues or  liabilities
     upon receipt of payment  thereof to the extent those items were prorated or
     credited at closing based upon estimates. Any bills or invoices received by
     Buyer after closing which relate to services rendered or goods delivered to
     the Seller or the  property  prior to closing  shall be paid by Seller upon
     presentation of such bill or invoice. At Buyer's option, Buyer may pay such
     bill or invoice and be reimbursed the amount paid plus interest at the rate
     of 12% per annum  beginning  fifteen  (15)  days  from the date of  Buyer's
     written  demand to Seller for  reimbursement  until such  reimbursement  is
     made. Rents collected from each tenant after closing shall be applied first
     to rentals due most recently from such tenant for the period after closing,
     and the balance  shall be applied to the  benefit of Seller for  delinquent
     rentals  owned for a period prior to closing.  The amounts  applied for the
     benefit of Seller shall be turned over to Seller promptly after receipt.

10.  OPERATIONS  PRIOR TO CLOSING.  Prior to closing,  Seller shall  continue to
     operate the  Property in the  ordinary  course of its business and maintain
     the Property in the same or better  condition  than as existing on the date
     of mutual acceptance of this Agreement, but shall not be required to repair
     material  damage  from  casualty  except  as  otherwise  provided  in  this
     Agreement. Seller shall not enter into or modify existing rental agreements
     or leases  (except that Seller may modify or terminate  residential  rental
     agreements  or leases in the  ordinary  course  of its  business),  service
     contracts,  or other  agreements  affecting  the Property  which have terms
     extending  beyond closing without first obtaining  Buyer's  consent,  which
     shall not be unreasonably withheld.


INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 7 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

11.  POSSESSION.  Buyer  shall be entitled  to  possession,  subject to existing
     tenancies  (if  any),  |X|  on  closing  |_|  _____  (on  closing,  if  not
     completed).

12.  SELLER'S REPRESENTATIONS AND WARRANTIES.  Seller represents and warrants to
     Buyer that,  to the best of Seller's  knowledge,  each of the  following is
     true as of the date hereof and shall be true as of  closing:  (a) Seller is
     authorized  to enter  into the  Agreement,  to sell  the  Property,  and to
     perform  its  obligations  under the  Agreement;  (b) all  books,  records,
     leases,  agreements  and other times  delivered  to Buyer  pursuant to this
     Agreement  are  accurate  and  complete;  (c) The Property and the business
     conducted thereon comply with all applicable laws,  regulations,  codes and
     ordinances;  (d) Seller has all  certificates  of occupancy,  permits,  and
     other  governmental  consents necessary to own and operate the property for
     its current use;  (e) There is no pending or  threatened  litigation  which
     would  adversely  affect the Property or Buyer's  ownership  thereof  after
     closing;  (f)  There  are  no  covenants,   conditions,   restrictions,  or
     contractual  obligations  of Seller  which will  adversely  affect  Buyer's
     ownership of the Property after closing or prevent  Seller from  performing
     its obligations under the Agreement, except as disclosed in the preliminary
     commitment  for  title  insurance  or as  otherwise  disclosed  to Buyer in
     writing prior to the end of the inspecting  contingency states in Section 5
     above;  (b) There is no  pending  or  threatened  condemnation  or  similar
     proceedings  affecting the Property,  and except as otherwise  disclosed in
     the preliminary commitment for title insurance as or otherwise disclosed to
     Buyer  in  writing  prior  to  closing,  the  Property  is not  within  the
     boundaries of any planned or authorized  local  improvement  district;  (h)
     Seller has paid (except to the extent prorated at closing) all local, state
     and  federal  taxes  (other  than  real and  personal  property  taxes  and
     assessments  described in Section 5 above) attributable to the period prior
     to  closing  which,  if not  paid,  could  constitute  a lien  on  Property
     (including  any personal  property),  or for which Buyer may be held liable
     after  closing;  and (l)  Seller  warrants  that  there are no  pending  or
     threatened  notices of  violation of  building,  zoning,  or land use codes
     applicable  to the  Property;  and (j) Seller is not aware of any concealed
     material   defects  in  the  Property   except:   none.   Seller  makes  no
     representations  or  warranties  regarding  the  Property  other than those
     specified in this Agreement, Buyer otherwise takes the Property `AS IS" and
     Buyer  shall  otherwise  rely  on  its  own  pre-closing   inspections  and
     investigations.

13.  HAZARDOUS SUBSTANCES. Except as disclosed to or known by Buyer prior to the
     satisfaction  or waiver of the inspection  contingency  stated in Section 5
     above,  Seller  represents  and warrants to Buyer that,  to the best of its
     knowledge;  (i)  there  are no  Hazardous  Substances  (as  defined  below)
     currently  located  in, on, or under the  Property  in a manner or quantity
     that presently  violates any  Environmental  Law (as defined  below);  (ii)
     there are no underground  storage tanks located on the Property;  and (iii)
     there is no pending or threatened  investigation  or remedial action by any
     governmental  agency  regarding the release of Hazardous  Substances or the
     violation of Environmental  Law at the Property.  As used herein,  the term
     "Hazardous  Substances"  shall  mean  any  substance  or  material  now  or
     hereafter defined or regulated as a hazardous  substance,  hazardous waste,
     toxic substance,

INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 8 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     pollutant,   or  contaminant  under  any  federal,  state,  or  local  law,
     regulation, or ordinance governing any substance that could cause actual or
     suspected harm to human health or the  environment  ("Environmental  Law").
     The term "Hazardous  Substances"  specifically includes, but is not limited
     to, petroleum, petroleum by-products, and asbestos.

14.  PERSONAL PROPERTY

     a. This sale  includes  all  right,  title  and  interest  of Seller to the
     following  tangible  personal  property:  |_| None |X| That  portion of the
     personal  property  located on and used in  connection  with the  Property,
     which Seller will  itemize in an Addendum to be attached to this  Agreement
     within ten (10) days of mutual  acceptance  (None, if not  completed).  The
     value assigned to the personal  property shall be the amount agreed upon by
     the  parties  and,  if they  cannot  agree,  the  County-assessed  value if
     available,  and if not  available,  the fair market value  determined by an
     appraiser  selected  by the  Listing  Agent and  Selling  Licensee.  Seller
     warrants  title to, but not the  condition  of, the  personal  property and
     shall  convey  it by bill of sale.  Buyer  shall  pay any  sales or use tax
     arising from the transfer of the personal property. PURCHASE PRICE INCLUDES
     OVERHEAD CRANE, AND EQUIPPED PAINT BOOTHS.

     b. In addition to the leases,  contracts  and  agreements  assumed by Buyer
     pursuant  to  Section  5a above this sale  includes  all  right,  title and
     interest of Seller to the  following  intangible  property now or hereafter
     existing with respect to the Property  including  without  limitation:  all
     rights-of-way,  rights of ingress or egress or other  interests  in, on, or
     to, any land, highway, street, road, or avenue, open or proposed, in, on or
     across,  in front of,  abutting or adjoining  the  Property;  all rights to
     utilities serving the Property;  all drawings,  plans,  specifications  and
     other architectural or engineering work product; all governmental  permits,
     certificates, licenses, authorizations and approvals; all utility, security
     and  other  deposits  and  reserve   accounts  made  as  security  for  the
     fulfillment  of any of  Seller's  obligations;  any  name  of or  telephone
     numbers for the Property  and related  trademarks,  service  marks or trade
     dress;  and  guaranties,  warranties  or other  assurances  of  performance
     received.

15.  CONDEMNATION AND CASUALTY.  Buyer may terminate this Agreement and obtain a
     refund of the  earnest  money,  less any costs  advanced or  committed  for
     Buyer, if improvements on the Property are destroyed or materially  damaged
     by casualty  before closing,  or if condemnation  proceedings are commenced
     against all or a portion of the Property before closing.

16.  FIRPTA - TAX WITHHOLDING AT CLOSING. Closing Agent is instructed to prepare
     a certification (CBA or NWMLS Form 22E, or equivalent) that Seller is not a
     "foreign  person"  within the  meaning of the  Foreign  Investment  in Real
     Property Tax Act. Seller agrees to sign this certification,  if Seller is a
     foreign person,  and this  transaction is not otherwise exempt from FIRPTA,
     Closing Agent is instructed to withhold and pay the required  amount to the
     Internal Revenue Service.


INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                    Page 9 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

17.  CONVEYANCE.  Title shall be conveyed by a Statutory  Warranty  Deed subject
     only to the Permitted  Exceptions.  If this  Agreement is for conveyance of
     Seller's  vendee's  interest  in a  Real  Estate  Contract,  the  Statutory
     Warranty Deed shall include a contract  vendee's  assignment  sufficient to
     convey after acquired title. At closing, Seller and Buyer shall execute and
     deliver to  Closing  Agent CBA Form No.  PS-AS  Assignment  and  Assumption
     Agreement  transferring  all leases,  contracts and  agreements  assumed by
     Buyer  pursuant  to  Section  5a and all  intangible  property  transferred
     pursuant to Section 14b.

18.  NOTICES AND COMPUTATION OF TIME.  Unless  otherwise  specified,  any notice
     required  or  permitted  in,  or  related  to,  this  Agreement  (including
     revocations  of offers and  counteroffers)  must be in writing.  Notices to
     Seller must be signed by at least one Buyer and must be delivered to Seller
     and Listing Agent.  A notice to Seller shall be deemed  delivered only when
     received by Seller, Listing Agent, or the licensed office of Listing Agent.
     Notices  to  Buyer  must be  signed  by at  least  one  Seller  and must be
     delivered to Buyer and Selling Licensee.  A notice to Buyer shall be deemed
     delivered only when received by Buyer,  Selling  Licensee,  or the licensed
     office of Selling  Licensee.  Selling  Licensee  and Listing  Agent have no
     responsibility  to advise of receipt of a notice beyond either  phoning the
     party or  causing  a copy of the  notice  to be  delivered  to the  party's
     address on this Agreement.  Buyer and Seller must keep Selling Licensee and
     Listing Agent advised of their  whereabouts to receive prompt  notification
     of receipt of a notice.

     Unless  otherwise  specified in this Agreement,  any period of time in this
     Agreement shall begin the day after the event starting the period and shall
     expire at 5:00 p.m.  Pacific time of the last calendar day of the specified
     period of time, unless the last day is a Saturday,  Sunday or legal holiday
     as defined in RCW 1.16.050,  which case the specified  period of time shall
     expire on the next day that is not a Saturday, Sunday or legal holiday. Any
     specified  period  of five (5) days or less  shall not  include  Saturdays,
     Sundays or legal holidays.

19.  AGENCY DISCLOSURE. At the signing of this Agreement.

     SELLING LICENSEE:  Peter Tadei
                      ----------------------------------------------------------
                (Insert names of licensee and the Company name as licensed)

     Represented
                 ---------------------------------------------------------------
       (Insert Seller, Buyer, both Seller and Buyer or Neither seller nor Buyer)

     and the Listing Agent  Dennis DeLaHunt - Select Properties OR Inc. Peter
                           -----------------------------------------------------
                            Tadei - Myriad Commercial Properties
                           -----------------------------------------------------
       (Insert Seller, Buyer, both Seller and Buyer or Neither seller nor Buyer)

     Represented  Seller
                 ---------------------------------------------------------------
               (Insert names of Licensee and the Company name as licensed)

     If Selling Licensee and Listing Agent are different salespersons affiliated
     with the same Broker; then Seller and Buyer confirm their consent to Broker
     acting as a dual agent. If


INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                   Page 10 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     Selling  Licensee and Listing Agent are the same person  representing  both
     parties,  then Seller and Buyer  confirm  their  consent to that person and
     his/her Broker acting as dual agents. If Seller Licensee, Listing Agent, or
     their  Broker are dual  agents,  then  Seller and Buyer  consent to Selling
     Licensee,  Listing  Agent and their  Broker  being  compensated  based on a
     percentage of the purchase  price or as otherwise  disclosed on an attached
     addendum.  Buyer and Seller confirm  receipt of the pamphlet  entitled "The
     law of Real Estate Agency."

20.  ASSIGNMENT.  Buyer |X| may |_| may not (may not, if not  completed)  assign
     this Agreement, or Buyer's rights hereunder, without Seller's prior written
     consent, unless provided otherwise herein.

21.  DEFAULT AND ATTORNEY'S FEE. In the event Buyer fails, without legal excuse,
     to complete the purchase of the Property, then (check one):

     |X| that  portion of the earnest  money which does not exceed five  percent
     (5%) of the purchase  price shall be kept by Seller as  liquidated  damages
     (subject to Seller's  obligation to pay certain  costs of a commission,  if
     any) as the sole and exclusive remedy available to Seller for such failure;
     or

     |_| Seller  may,  at its option (a) keep as  liquidated  damages all of the
     earnest  money  (subject to Seller's  obligation  to pay certain costs or a
     commission,  if any) as the sole and exclusive  remedy  available to Seller
     for such failure, (b) bring suit against Buyer for Seller's actual damages,
     (c) bring suit to  specifically  enforce  this  Agreement  and  recover any
     incidental damages, or (d) pursue any other rights or remedies available at
     law or equity.

     If  Buyer  or  Seller  institutes  suit  concerning  this  Agreement,   the
     prevailing party is entitled to reasonable attorneys' fees and expenses. In
     the event of trial,  the amount of the attorney's fee shall be fixed by the
     court.  The venue of any suit shall be the county in which the  Property is
     located,  and this  Agreement  shall be  governed  by the laws of the state
     where the Property is located.

22.  MISCELLANEOUS PROVISIONS.

     a.  COMPLETE  AGREEMENT.  The  Agreement and any addenda and exhibits to it
     state the entire  understanding  of Buyer and Seller  regarding the sale of
     the  Property.  There are no verbal or written  agreements  which modify or
     affect the Agreement.

     b. NO  MERGER.  The terms of the  Agreement  shall not merge in the deed or
     other conveyance instrument  transferring the Property to Buyer at closing.
     The terms of this Agreement shall survive closing.

     c. COUNTERPART SIGNATURES. The Agreement may be signed in counterpart, each
     signed  counterpart  shall be  deemed  an  original,  and all  counterparts
     together shall constitute one and the same instrument.


INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                   Page 11 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     d. FACSIMILE  TRANSMISSION.  Facsimile  transmission of any signed original
     document, and retransmission of any signed facsimile transmission, shall be
     the same as delivery of an original. at the request of either party, or the
     Closing Agent, the parties will confirm facsimile transmitted signatures by
     signing an original document.

23.  ACCEPTANCE;  COUNTEROFFERS.  Seller  has  until  midnight  of  ___________,
     __________  (if not filled in, the third  business day  following  the last
     Buyer signature date below) to accept this offer,  unless sooner withdrawn.
     If this offer is not timely accepted,  it shall lapse and the earnest money
     shall be refunded to Buyer.  If either  party makes a future  counteroffer,
     the other party shall have until 5:00 p.m.  on the _____  business  day (if
     not filled in, the second business day) following its receipt to accept the
     counteroffer,  unless sooner  withdrawn.  If the counteroffer is not timely
     accepted or  countered,  this  Agreement  shall lapse and the earnest money
     shall be refunded to the Buyer. No acceptance,  offer or counteroffer  from
     the Buyer is  effective  until a signed copy is received b the Seller,  the
     Listing Agent or the licensed  office of the Listing Agent.  No acceptance,
     offer or  counteroffer  from the Seller is effective until a signed copy is
     received by the Buyer,  the Selling  Licensee or the licensed office of the
     Selling Licensee.

24.  INFORMATION  TRANSFER.  In the event this  Agreement is  terminated,  Buyer
     agrees to  deliver  to Seller  within  ten (10)  days of  Seller's  written
     request  copies  of all  materials  received  from  Seller  and any  plans,
     studies, reports,  inspections,  appraisals,  surveys,  drawings,  permits,
     application or other  development  work product relating to the Property in
     Buyer's possession or control as of the date this Agreement is terminated.

25.  CONFIDENTIALITY.  Until and unless closing has been consummated, Buyer will
     treat all  information  obtained in  connection  with the  negotiation  and
     performance of this Agreement as  confidential  (except for any information
     that Buyer is required by law to disclose and then only after giving Seller
     written notice at least three (3) days prior to the disclosure and will not
     use or  knowingly  permit the use of any  confidential  information  in any
     manner detrimental to Seller.

26.  SELLER'S  ACCEPTANCE  AND  BROKERAGE  AGREEMENT.  Seller agrees to sell the
     Property on the terms and  conditions  herein,  and further agrees to pay a
     commission  in a total  amount  computed  in  accordance  with the  listing
     agreement. If there is no written listing agreement, Seller agrees to pay a
     commission of 5% of the sales price or $__________. The commission shall be
     apportioned  between Listing Agent and Selling Licensee as specified in the
     listing agreement or any co-brokerage agreement.  Seller assigns to Listing
     Agent and  Selling  Licensee a portion of the sales  proceeds  equal to the
     commission.  If the earnest  money is retained as liquidated  damages,  any
     costs advanced or committed by Listing Agent or Selling  Licensee for Buyer
     or Seller shall be reimbursed or paid  therefrom,  and the balance shall be
     paid one-half to Seller and one-half to Listing Agent and Selling  Licensee
     according to the listing agreement and any co-brokerage  agreement.  In any
     action by Listing Agent or Selling  Licensee to enforce this  Section,  the
     prevailing  party is entitled to


INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                   Page 12 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT

     reasonable attorneys' fees and expenses.  Neither Listing Agent nor Selling
     Licensee  are  receiving  compensation  from  more  than one  party to this
     transaction unless disclosed on an attached  addendum,  in which case Buyer
     and Seller consent to such compensation. The Property described in attached
     Exhibit A, is commercial real estate. Notwithstanding Section 26 above, the
     pages  containing this section,  the parties'  signatures and an attachment
     describing the Property may be recorded.

27.  LISTING  AGENT  AND  SELLING  LICENSEE  DISCLOSURE.   EXCEPT  AS  OTHERWISE
     DISCLOSED  IN WRITING TO BUYER OR SELLER,  THE  SELLING  LICENSEE,  LISTING
     AGENT,  AND  BROKERS  HAVE  NOT  MADE  ANY  REPRESENTATIONS  OR  WARRANTIES
     CONCERNING  THE  LEGAL  EFFECT  OF  THIS  AGREEMENT,  BUYER'S  OR  SELLER'S
     FINANCIAL  STRENGTH,  OR THE PROPERTY,  INCLUDING WITHOUT  LIMITATION,  THE
     PROPERTY'S   ZONING,   COMPLIANCE  WITH  APPLICABLE  LAWS  (INCLUDING  LAWS
     REGARDING  ACCESSIBILITY  FOR DISABLED  PERSONS),  OR HAZARDOUS  MATERIALS.
     SELLER AND BUYER ARE EACH ADVISED TO SEE  INDEPENDENT  LEGAL AND TAX ADVICE
     ON THESE AND OTHER MATTERS RELATED TO THIS AGREEMENT.



























INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                   Page 13 of 14

                       COMMERCIAL & INVESTMENT REAL ESTATE
                            PURCHASE & SALE AGREEMENT




Buyer /s/ GT                             Date 8-18-05
      ----------------------------------     -----------------------------------

Buyer                                    Date
      ----------------------------------     -----------------------------------

Office Phone 338-3383         Fax No. 325-8559      Home Phone
             ----------------         -------------            -----------------

Print Buyer's Name Chuck Taggert and Glenn Taggart
                   -------------------------------------------------------------

Buyer's Address 254 W Marine Drive
                ----------------------------------------------------------------

Selling Office Myriad Commercial Properties
               -----------------------------------------------------------------

Office Phone 325-3400       Other Phone 338-8204         Fax No.
             --------------             ----------------         ---------------

Address 818 Commercial St., Astoria, OR 97103      MLS Office No. 959800
        ------------------------------------------                --------------

By Peter Tadei                          Print Name
   ------------------------------------            -----------------------------

Seller /s/ LARRY INMAN                   Date 8-23-05
      ----------------------------------     -----------------------------------

Seller /s/ MIKE WALLIS                   Date 8-23-05
      ----------------------------------     -----------------------------------

Home Phone                 Office Phone 861-1812 x232    Fax No. 503-867-0424
          -----------------             ----------------         ---------------

Print Seller's Name AB HOLDING GROUP INC.
                    ------------------------------------------------------------

Seller's Address 2320 SE Ag-Bag, Warrenton, OR 97146
                 ---------------------------------------------------------------

Listing Agent Peter Tadei, Dennis DeLaHunt
              ------------------------------------------------------------------

Listing Office Myriad Commercial Properties, Select Properties OR Inc.
               -----------------------------------------------------------------

Office Phone No. 325-3400       Other Phone 325-3776       Fax No.
                 ---------------            --------------         -------------

Address 818 Commercial St. Astoria, OR 97103        MLS OFFICE No. 959800
        --------------------------------------------               -------------

28. BUYER'S RECEIPT.  Buyer acknowledges receipt of a Seller signed copy of this
Agreement on
             ------------------------, -----.

BUYER /s/ GLENN TAGGART                      BUYER
      ----------------------------------          ------------------------------



INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
<PAGE>
SELECT PROPERTIES INC.                                        (C) COPYRIGHT 1999
7522 Grayhawk Lane NE                             Commercial Brokers Association
Olympia, WA 98516                                            All Rights Reserved
Phone: (206) 963-1407                                             CBA FORM PS-1A
Fax (206) 456-2093                                    Property & Sales Agreement

                                                                       Rev. 9/03
                                                                   Page 14 of 14

                              ADDENDUM/AMENDMENT TO
                            PURCHASE & SALE AGREEMENT


             CBA Text Disclaimer; Text deleted by licensee indicated
              by strike. New text inserted by licensee indicted by
                             small capital letters.

     The following is part of the Purchase and Sale  Agreement  dated August 19,
2005.                                                                 ----------
-----

     Between AB HOLDING GROUP, INC. ("Seller")

     And Check Taggart and Glenn Taggart ("Buyer)
         -------------------------------

     Regarding the sale of the Property known as Ag-Bag
                                                 ------

     IT IS AGREED  BETWEEN  THE SELLER AND BUYER AS  FOLLOWS:
     Seller agrees to deliver possession on closing in a "broom clean" condition
     ---------------------------------------------------------------------------
     with the yard clean of all material  and  equipment.  If current  tenant(s)
     ---------------------------------------------------------------------------
     holds  over,  Buyer  will  lease  with 30 day  increments  at $.45  psf for
     ---------------------------------------------------------------------------
     warehouse and $.75 for office.
     ------------------------------











AGENT (COMPANY)
                                          By:
--------------------------------------       -----------------------------------

ALL OTHER TERMS AND CONDITIONS of said Agreement remain unchanged.






INITIALS:   Buyer:   GT     Date: 8-18-05     Seller: LI - MW    Date:  8-23-5
                  ---------      ------------        -----------      ----------
            Buyer:          Date:             Seller:            Date:
                  ---------      ------------        -----------      ----------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>6
<FILENAME>ab_10qex311-50930.txt
<TEXT>
                                                                    Exhibit 31.1

                                  Certification

I, Larry R. Inman, certify that:

1.       I have reviewed this quarterly report on Form 10-Q of AB Holding Group,
         Inc.;

2.       Based  on my  knowledge,  this  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 report;

3.       Based on my knowledge,  the financial  statements,  and other financial
         information  included in this  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 report;

4.       The  registrant's  other  certifying  officer and I are responsible for
         establishing  and  maintaining  disclosure  controls and procedures (as
         defined  in  Exchange  Act  Rules  13a-15(e)  and  15d-15(e))  for  the
         registrant and have:

         a)   designed such disclosure  controls and procedures,  or caused such
              disclosure  controls  and  procedures  to be  designed  under  our
              supervision,  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 report is being prepared;

         b)   evaluated  the   effectiveness  of  the  registrant's   disclosure
              controls  and   procedures   and  presented  in  this  report  our
              conclusions about the effectiveness of the disclosure controls and
              procedures,  as of the end of the period  covered  by this  report
              based on such evaluation; and

         c)   disclosed in this report any change in the  registrant's  internal
              control  over  financial   reporting  that  occurred   during  the
              registrant's most recent fiscal quarter (the  registrant's  fourth
              fiscal  quarter  in  the  case  of  an  annual  report)  that  has
              materially affected, or is reasonably likely to materially affect,
              the registrant's internal control over financial reporting; and

5.       The registrant's other certifying  officer and I have disclosed,  based
         on our most  recent  evaluation  of  internal  control  over  financial
         reporting,  to the  registrant's  auditors  and the audit  committee of
         registrant's  board of directors (or persons  performing the equivalent
         functions):

         a)   all significant deficiencies and material weaknesses in the design
              or operation of internal controls over financial reporting,  which
              are reasonably likely to adversely affect the registrant's ability
              to record,  process,  summarize and report financial  information;
              and

         b)   any fraud,  whether or not material,  that involves  management or
              other  employees who have a significant  role in the  registrant's
              internal control over financial reporting.


Date: October 31, 2005

/s/ LARRY R. INMAN
----------------------------
Chief Executive Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>7
<FILENAME>ab_10qex312-50930.txt
<TEXT>
                                                                    Exhibit 31.2

                                  Certification

I, Michael R. Wallis, certify that:


1.       I have reviewed this quarterly report on Form 10-Q of AB Holding Group,
         Inc.;

2.       Based  on my  knowledge,  this  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 report;

3.       Based on my knowledge,  the financial  statements,  and other financial
         information  included in this  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 report;

4.       The  registrant's  other  certifying  officer and I are responsible for
         establishing  and  maintaining  disclosure  controls and procedures (as
         defined  in  Exchange  Act  Rules  13a-15(e)  and  15d-15(e))  for  the
         registrant and have:

         a)   designed such disclosure  controls and procedures,  or caused such
              disclosure  controls  and  procedures  to be  designed  under  our
              supervision,  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 report is being prepared;

         b)   evaluated  the   effectiveness  of  the  registrant's   disclosure
              controls  and   procedures   and  presented  in  this  report  our
              conclusions about the effectiveness of the disclosure controls and
              procedures,  as of the end of the period  covered  by this  report
              based on such evaluation; and

         c)   disclosed in this report any change in the  registrant's  internal
              control  over  financial   reporting  that  occurred   during  the
              registrant's most recent fiscal quarter (the  registrant's  fourth
              fiscal  quarter  in  the  case  of  an  annual  report)  that  has
              materially affected, or is reasonably likely to materially affect,
              the registrant's internal control over financial reporting; and

5.       The registrant's other certifying  officer and I have disclosed,  based
         on our most  recent  evaluation  of  internal  control  over  financial
         reporting,  to the  registrant's  auditors  and the audit  committee of
         registrant's  board of directors (or persons  performing the equivalent
         functions):

         a)   all significant deficiencies and material weaknesses in the design
              or operation of internal controls over financial reporting,  which
              are reasonably likely to adversely affect the registrant's ability
              to record,  process,  summarize and report financial  information;
              and

         b)   any fraud,  whether or not material,  that involves  management or
              other  employees who have a significant  role in the  registrant's
              internal control over financial reporting.


Date: October 31, 2005

/s/ MICHAEL R. WALLIS
----------------------------------
Chief Financial Officer, Treasurer
and Vice President of Finance
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>8
<FILENAME>ab_10qex321-50930.txt
<TEXT>
                                                                    EXHIBIT 32.1

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In  connection  with  the  Quarterly  Report  of  AB  Holding  Group,  Inc.,(the
"Company")  on Form 10-Q for the period ended  September  30, 2005 as filed with
the Securities and Exchange  Commission on the date hereof (the  "Report"),  the
undersigned  hereby  certifies  pursuant to 18 U.S.C.  Section  1350, as adopted
pursuant to Section 906 of the  Sarbanes-Oxley  Act of 2002, that to the best of
my knowledge:

(1)      The Report fully  complies  with the  requirements  of section 13(a) or
         15(d) of the Securities Exchange Act of 1934; and

(2)      The  information  contained  in  the  Report  fairly  presents,  in all
         material respects, the financial condition and results of operations of
         the Company.




October 31, 2005  /s/ LARRY R. INMAN        Chief Executive
                  ---------------------     Officer
                  (Larry R. Inman)


October 31, 2005  /s/ MICHAEL R. WALLIS     Chief Financial Officer,
                  ---------------------     Vice President of Finance,
                  (Michael R. Wallis)       and Treasurer
</TEXT>
</DOCUMENT>
</SUBMISSION>
