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Exhibit 1

Operations 1998 1999 2000 2001 2002


Sales 48.5 49.1 53.7 54.8 55.3
COGS 32.6 33.1 35.9 37.2 37.9
SG&A 10.7 11.1 11.5 11.9 12.3
Depreciation 2 2.3 2.4 2.3 2.1
Interest expense 0.4 0.7 0.8 0.8 0.8
Operating profit 2.8 1.9 3.1 2.6 2.2
Tax @ 40% 1.1 0.8 1.2 1.0 0.9
EBIAT 1.7 1.1 1.9 1.6 1.3

Percentage of sales
COGS/Sales 67.2% 68.2% 74.0% 76.7% 78.1%
SG&A/Sales 22.1% 22.9% 23.7% 24.5% 25.4%
Oper. Profit/Sales 5.8% 3.9% 6.4% 5.4% 4.5%

Stockholder information
Earnings per share 2.91 1.88 3.25 2.74 2.23
Dividends per share 1.6 1.6 1.6 1.6 1.6
Book value per share 49.4 49.68 51.33 52.47 53.1
Market price 33-46 35-48 29-41 25-33 23-32
P/E ratio 11-16 10-26 9-13 9-12 10-14
Shares outstanding 584,000 584,000 584,000 584,000 584,000

Exhibit 5
2003 2004 2005 2006 2007
Net income 11.0 11.9 12.8 13.8 15.0
Shares outstanding 4.2 4.2 4.2 4.2 4.2
Earnings per share 2.61 2.83 3.04 3.28 3.56
Exhibit 2

Assets Liabilities and Net worth


Cash 1 Accounts payable 2
Accounts receivable 8 Other 2
Inventories 18 Current liabilities 4
Other 1 Long-term debt 12
Current assets 28
Net Plant and Equipment 19 Net worth 31
Total assets 47 Total Liabilities and net worth 47
Actual Forecasted
Year 2002 2003 2004 2005 2006 2007
Sales $ 55.3 58.6 62.1 65.9 69.8 74.0
COGS $ 38.2 $ 39.9 $ 41.6 $ 43.5 $ 45.4 $ 48.1
SG&A $ 12.2 $ 12.3 $ 12.4 $ 12.5 $ 13.3 $ 14.1
Depreciation $ 2.1 2.2 2.4 2.5 2.7 2.8
Operating profit (EBIT) $ 2.9 $ 4.2 $ 5.7 $ 7.4 $ 8.5 $ 9.0
Tax @ 40% $ 1.2 $ 1.7 $ 2.3 $ 3.0 $ 3.4 $ 3.6
NOPAT $ 1.7 $ 2.5 $ 3.4 $ 4.4 $ 5.1 $ 5.4

COGS/Sales 69% 68% 67% 66% 65% 65%


SG&A/Sales 22% 21% 20% 19% 19% 19%

Net plant & Equipment (Beginning) $ 19.0 $ 20.8 $ 21.9 $ 23.0 $ 24.2
CAPEX $ 4.0 $ 3.5 $ 3.6 $ 3.8 $ 2.9
Depreciation $ 2.2 $ 2.4 $ 2.5 $ 2.7 $ 2.8
Net plant & Equipment (End) $ 19.00 $ 20.8 $ 21.9 $ 23.0 $ 24.2 $ 24.3

FCFF
Depreciation 2.2 2.4 2.5 2.7 2.8
NWC 24.0 25.4 27.0 28.6 30.3 32.1
Change in NWC 1.4 1.5 1.6 1.7 1.8
Capital expenditures $ 4.0 $ 3.5 $ 3.6 $ 3.8 $ 2.9
Free cash flow $ (0.68) $ 0.76 $ 1.71 $ 2.25 $ 3.51
Terminal value at the end of 2007 55.80
Years 1 2 3 4 5
Total cash flow $ (0.68) $ 0.76 $ 1.71 $ 2.25 $ 59.31
Discounting Factor $ 0.92 $ 0.85 $ 0.78 $ 0.72 $ 0.67
Discounted cash flows $ (0.63) $ 0.65 $ 1.34 $ 1.63 $ 39.59
Enterprise value $42.58
Price/share $72.92

Scenarios WACC
$72.92 7.4% 7.9% 8.4% 8.9% 9.4%
1.0%
1.5%
Growth Rates 2.0%
2.5%
3.0%
Assumptions
Growth Rate 6.0% Case Data
Long Term Growth Rate 2.0%
Income tax rate = 40% Case Data
Net working capital/Sales = 43.4% from Exhibits 1 and 2
PP&E/Sales = 34.4% from Exhibits 1 and 2
Depreciation/PP&E ratio = 11.1% from Exhibits 1 and 2
WACC = 8.42% Calculated
Outstanding Shares(Divided by Million) 0.584

Value of the Firm $ 37.7


D/V 31.8%
E/V 68.2%
Times Interst Earned 2.16
Kd 6.7%
After Tax Cost of Debt 4.0%
Unlevered Beta 0.73
Equity Beta 1.06
Market Risk Premium 6.0%
Rf 4.1%
Ke 10.48%
WACC 8.4%

Exchange Ratio 1.657176