*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PERFORMANCE EVALUATION REPORT, QUARTER 6 PAGE 1

*****************************************************************************

+------+------Industry ------+

| Firm 6 | Worst Average Best |

------+------+------+

FINANCIAL | | |

Net Income to Revenues | 3.0%| 2.9% 3.3% 3.8%|

Change in Net Income to Revenues | 0.4%| 0.0% 0.4% 1.8%|

Return on Assets | 6.6%| 6.3% 7.3% 8.7%|

Net Asset Turns | 2.8 | 2.8 2.9 2.9 |

------+------+------+

OPERATIONAL | | |

Inventory Turnover | 2.5 | 1.9 2.6 3.7 |

Fill Rate | 100.0%| 100.0% 100.0% 100.0%|

Unplanned Production | 0.0%| 0.0% 0.0% 0.0%|

Transportation Expenses Per Unit Sold | 32.3 | 32.7 32.2 31.8 |

Forecasting Accuracy | 92.0%| 87.9% 90.4% 92.4%|

(Marketing + Service) to Revenues | 10.3%| 10.3% 10.2% 10.0%|

------+------+------+

CUSTOMER | | |

Change in Market Share | 0.1%| -0.4% 0.0% 1.1%|

Customer Satisfaction | 19.0%| 18.0% 18.5% 19.0%|

------+------+------+

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

LINKS DASHBOARD, QUARTER 6 PAGE 1

*****************************************************************************

Quarter 5 Quarter 6

+------+------+

Sales Volume | 179,741 | 186,979 |

Unfilled Orders | 0 | 0 |

------+------+------+

Price | 416 | 415 |

------+------+------+

Revenues | 74,822,330 100.0% | 77,636,040 100.0% |

Product Costs | 39,656,705 53.0% | 40,877,545 52.7% |

Gross Margin | 21,052,402 28.1% | 22,128,611 28.5% |

Net Income | 1,966,617 2.6% | 2,365,074 3.0% |

+------+------+

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

CORPORATE P&L STATEMENT, QUARTER 6 PAGE 2

*****************************************************************************

All Products Product 6-1 Product 6-2 Product 6-3

------

Sales Volume 186,979 116,527 70,452 0

Unfilled Orders 0 0 0 0

Price 415 375 480 0

Revenues 77,636,040 43,809,090 33,826,950 0

- Product Costs 40,877,545 20,974,860 19,902,685 0

- Order Processing 1,997,308 1,292,376 704,932 0

- Replacement Parts 1,394,548 611,296 783,252 0

- RFID Costs 974,369 509,916 464,453 0

- Transportation Costs 6,032,904

+ Transportation Rebates 0

- Duties & Tariffs 4,230,755 2,688,808 1,541,947 0

------

Gross Margin 22,128,611 17,731,834 10,429,681 0

Gross Margin % 28.5% 40.5% 30.8% 0.0%

Fixed & Other Costs:

Administrative O/H 4,440,000 2,700,000 1,740,000 0

Consulting Fees 0

Corporate O/H 1,500,000

Distribution FC 25,000

Emergency Production 100,000

Forecast Inaccuracy 362,817 271,282 91,535 0

Information Technology 24,000

Introductions 0

Inventory Charges 487,772

Marketing 5,400,000 3,240,000 2,160,000 0

Marketing Creative 0 0 0 0

Plant Capacity FC 1,200,000

Price Changes 0 0 0 0

Production FC 141,000

Research Studies 0

Service Outsourcing 2,578,823 1,626,255 952,568 0

Unfilled Handling 0

Total Fixed & Other 16,259,412 7,837,537 4,944,103 0

------

Operating Income 5,869,199 9,894,297 5,485,578 0

------

Non-Operating Income -1,139,052

Taxes -2,365,073

======

Net Income 2,365,074

======

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

CORPORATE P&L STATEMENT, QUARTER 6 PAGE 3

*****************************************************************************

Product 6-4

------

Sales Volume 0

Unfilled Orders 0

Price 0

Revenues 0

- Product Costs 0

- Order Processing 0

- Replacement Parts 0

- RFID Costs 0

- Transportation Costs

+ Transportation Rebates

- Duties & Tariffs 0

------

Gross Margin 0

Gross Margin % 0.0%

Fixed & Other Costs:

Administrative O/H 0

Consulting Fees

Corporate O/H

Distribution FC

Emergency Production

Forecast Inaccuracy 0

Information Technology

Introductions

Inventory Charges

Marketing 0

Marketing Creative 0

Plant Capacity FC

Price Changes 0

Production FC

Research Studies

Service Outsourcing 0

Unfilled Handling

Total Fixed & Other 0

------

Operating Income 0

------

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

HISTORICAL CORPORATE P&L STATEMENT, QUARTER 6 PAGE 4

*****************************************************************************

Previous (Quarter 5) Current (Quarter 6)

------

Sales Volume 179,741 186,979

Unfilled Orders 0 0

Price 416 415

Revenues 74,822,330 100.0% 77,636,040 100.0%

- Product Costs 39,656,705 53.0% 40,877,545 52.7%

- Order Processing 1,941,744 2.6% 1,997,308 2.6%

- Replacement Parts 1,365,430 1.8% 1,394,548 1.8%

- RFID Costs 952,776 1.3% 974,369 1.3%

- Transportation Costs 5,816,710 7.8% 6,032,904 7.8%

+ Transportation Rebates 0 0.0% 0 0.0%

- Duties & Tariffs 4,036,563 5.4% 4,230,755 5.4%

------

Gross Margin 21,052,402 28.1% 22,128,611 28.5%

Fixed & Other Costs:

Administrative O/H 4,440,000 5.9% 4,440,000 5.7%

Consulting Fees 0 0.0% 0 0.0%

Corporate O/H 1,500,000 2.0% 1,500,000 1.9%

Distribution FC 25,000 0.0% 25,000 0.0%

Emergency Production 100,000 0.1% 100,000 0.1%

Forecast Inaccuracy 265,839 0.4% 362,817 0.5%

Information Technology 24,000 0.0% 24,000 0.0%

Introductions 0 0.0% 0 0.0%

Inventory Charges 412,161 0.6% 487,772 0.6%

Marketing 5,400,000 7.2% 5,400,000 7.0%

Marketing Creative 0 0.0% 0 0.0%

Plant Capacity FC 1,200,000 1.6% 1,200,000 1.5%

Price Changes 0 0.0% 0 0.0%

Production FC 141,000 0.2% 141,000 0.2%

Research Studies 0 0.0% 0 0.0%

Service Outsourcing 2,518,376 3.4% 2,578,823 3.3%

Unfilled Handling 0 0.0% 0 0.0%

Total Fixed & Other 16,026,376 21.4% 16,259,412 20.9%

------

Operating Income 5,026,026 6.7% 5,869,199 7.6%

------

Non-Operating Income -1,092,793 -1.5% -1,139,052 -1.5%

Taxes -1,966,616 -2.6% -2,365,073 -3.0%

======

Net Income 1,966,617 2.6% 2,365,074 3.0%

======

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-1 P&L STATEMENT, QUARTER 6 PAGE 5

*****************************************************************************

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)

------

Active? Ch#1,2,3 Yes Yes Yes Yes Yes Yes Yes Yes Yes

Sales Volume, Ch#1 46,356 18,047 11,376 16,933

Sales Volume, Ch#2 22,075 7,789 4,911 9,375

Sales Volume, Ch#3 48,096 21,743 11,329 15,024

Unfilled Orders 0 0 0 0

Price, Ch#1,2,3 295 450 420 295 450 420 295 450 420 295 450 420

Revenues 43,809,090 17,960,975 10,324,050 15,524,065

- Product Costs 20,974,860 8,564,220 4,970,880 7,439,760

- Order Processing 1,292,376 520,040 299,316 473,020

- Replacement Parts 611,296 245,277 142,153 223,866

- RFID Costs 509,916 198,517 125,136 186,263

- Duties & Tariffs 2,688,808 0 825,922 1,862,886

------

Gross Margin 17,731,834 8,432,921 3,960,643 5,338,270

Gross Margin % 40.5% 47.0% 38.4% 34.4%

Fixed Costs:

Administrative O/H 2,700,000 900,000 900,000 900,000

Forecast Inaccuracy 271,282 95,075 106,279 69,928

Marketing, Ch#1 1,080,000 360,000 360,000 360,000

Marketing, Ch#2 1,080,000 360,000 360,000 360,000

Marketing, Ch#3 1,080,000 360,000 360,000 360,000

Marketing Creative 0 0 0 0

Price Changes 0 0 0 0

Service Outsourcing 1,626,255 573,600 395,388 657,267

Total Fixed Costs 7,837,537 2,648,675 2,481,667 2,707,195

------

Operating Income 9,894,297 5,784,246 1,478,976 2,631,075

======

Distribution Center? 2 Owned 0 None 0 None

RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced

Emergency Carrier N N

Sales Volume Forecast, Ch#1 16,505 9,776 16,632

Sales Volume Forecast, Ch#2 8,494 5,270 8,054

Sales Volume Forecast, Ch#3 18,700 9,584 15,772

Service: Service Outsourcing 2 Standard 2 Standard 2 Standard

Product 6-1 Configuration: H55221

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-1 P&L STATEMENT, QUARTER 6 (MARKETING PROGRAM DETAILS) PAGE 6

*****************************************************************************

Region 1 Region 2 Region 3

( U.S.A.) ( Europe) ( Pacific)

------

Marketing Program, Channel #1:

Marketing Spending: 360,000 360,000 360,000

Advertising Spending 144,000 144,000 144,000

Promotion Spending 108,000 108,000 108,000

Sales Force Spending 108,000 108,000 108,000

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 108,000 108,000 108,000

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 3.16 3.16 3.16

Marketing Program, Channel #2:

Marketing Spending: 360,000 360,000 360,000

Advertising Spending 144,000 144,000 144,000

Promotion Spending 108,000 108,000 108,000

Sales Force Spending 108,000 108,000 108,000

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 108,000 108,000 108,000

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 3.16 3.16 3.16

Marketing Program, Channel #3:

Marketing Spending: 360,000 360,000 360,000

Advertising Spending 144,000 144,000 144,000

Promotion Spending 108,000 108,000 108,000

Sales Force Spending 108,000 108,000 108,000

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 108,000 108,000 108,000

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 3.16 3.16 3.16

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-2 P&L STATEMENT, QUARTER 6 PAGE 7

*****************************************************************************

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)

------

Active? Ch#1,2,3 Yes Yes Yes Yes Yes No Yes No No

Sales Volume, Ch#1 42,223 12,442 11,070 18,711

Sales Volume, Ch#2 16,441 10,676 5,765 0

Sales Volume, Ch#3 11,788 11,788 0 0

Unfilled Orders 0 0 0 0

Price, Ch#1,2,3 410 560 620 410 560 620 410 560 620 410 560 620

Revenues 33,826,950 18,388,340 7,767,100 7,671,510

- Product Costs 19,902,685 9,860,942 4,755,886 5,285,857

- Order Processing 704,932 447,448 182,640 74,844

- Replacement Parts 783,252 386,156 190,669 206,427

- RFID Costs 464,453 136,862 121,770 205,821

- Duties & Tariffs 1,541,947 0 621,366 920,581

------

Gross Margin 10,429,681 7,556,932 1,894,769 977,980

Gross Margin % 30.8% 41.1% 24.4% 12.7%

Fixed Costs:

Administrative O/H 1,740,000 900,000 600,000 240,000

Forecast Inaccuracy 91,535 50,805 21,324 19,406

Marketing, Ch#1 1,080,000 360,000 360,000 360,000

Marketing, Ch#2 720,000 360,000 360,000 0

Marketing, Ch#3 360,000 360,000 0 0

Marketing Creative 0 0 0 0

Price Changes 0 0 0 0

Service Outsourcing 952,568 436,180 247,080 269,308

Total Fixed Costs 4,944,103 2,466,985 1,588,404 888,714

------

Operating Income 5,485,578 5,089,947 306,365 89,266

======

Distribution Center? 2 Owned 0 None 0 None

RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced

Emergency Carrier N N

Sales Volume Forecast, Ch#1 12,332 10,746 17,198

Sales Volume Forecast, Ch#2 11,036 5,536 0

Sales Volume Forecast, Ch#3 10,352 0 0

Service: Service Outsourcing 2 Standard 2 Standard 2 Standard

Product 6-2 Configuration: M55542

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-2 P&L STATEMENT, QUARTER 6 (MARKETING PROGRAM DETAILS) PAGE 8

*****************************************************************************

Region 1 Region 2 Region 3

( U.S.A.) ( Europe) ( Pacific)

------

Marketing Program, Channel #1:

Marketing Spending: 360,000 360,000 360,000

Advertising Spending 144,000 144,000 144,000

Promotion Spending 108,000 108,000 108,000

Sales Force Spending 108,000 108,000 108,000

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 108,000 108,000 108,000

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 3.16 3.16 3.16

Marketing Program, Channel #2:

Marketing Spending: 360,000 360,000 0

Advertising Spending 144,000 144,000 0

Promotion Spending 108,000 108,000 0

Sales Force Spending 108,000 108,000 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 108,000 108,000 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 3.16 3.16 0.00

Marketing Program, Channel #3:

Marketing Spending: 360,000 0 0

Advertising Spending 144,000 0 0

Promotion Spending 108,000 0 0

Sales Force Spending 108,000 0 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 108,000 0 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 3.16 0.00 0.00

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-3 P&L STATEMENT, QUARTER 6 PAGE 9

*****************************************************************************

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)

------

Active? Ch#1,2,3 No No No No No No No No No

Sales Volume, Ch#1 0 0 0 0

Sales Volume, Ch#2 0 0 0 0

Sales Volume, Ch#3 0 0 0 0

Unfilled Orders 0 0 0 0

Price, Ch#1,2,3 0 0 0 250 450 400 250 450 400 250 450 400

Revenues 0 0 0 0

- Product Costs 0 0 0 0

- Order Processing 0 0 0 0

- Replacement Parts 0 0 0 0

- RFID Costs 0 0 0 0

- Duties & Tariffs 0 0 0 0

------

Gross Margin 0 0 0 0

Gross Margin % 0.0% 0.0% 0.0% 0.0%

Fixed Costs:

Administrative O/H 0 0 0 0

Forecast Inaccuracy 0 0 0 0

Marketing, Ch#1 0 0 0 0

Marketing, Ch#2 0 0 0 0

Marketing, Ch#3 0 0 0 0

Marketing Creative 0 0 0 0

Price Changes 0 0 0 0

Service Outsourcing 0 0 0 0

Total Fixed Costs 0 0 0 0

------

Operating Income 0 0 0 0

======

Distribution Center? 2 Owned 0 None 0 None

RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced

Emergency Carrier N N

Sales Volume Forecast, Ch#1 0 0 0

Sales Volume Forecast, Ch#2 0 0 0

Sales Volume Forecast, Ch#3 0 0 0

Service: Service Outsourcing 2 Standard 2 Standard 2 Standard

Product 6-3 Configuration: H11101

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-3 P&L STATEMENT, QUARTER 6 (MARKETING PROGRAM DETAILS) PAGE 10

*****************************************************************************

Region 1 Region 2 Region 3

( U.S.A.) ( Europe) ( Pacific)

------

Marketing Program, Channel #1:

Marketing Spending: 0 0 0

Advertising Spending 0 0 0

Promotion Spending 0 0 0

Sales Force Spending 0 0 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 0 0 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 0.00 0.00 0.00

Marketing Program, Channel #2:

Marketing Spending: 0 0 0

Advertising Spending 0 0 0

Promotion Spending 0 0 0

Sales Force Spending 0 0 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 0 0 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 0.00 0.00 0.00

Marketing Program, Channel #3:

Marketing Spending: 0 0 0

Advertising Spending 0 0 0

Promotion Spending 0 0 0

Sales Force Spending 0 0 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 0 0 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 0.00 0.00 0.00

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-4 P&L STATEMENT, QUARTER 6 PAGE 11

*****************************************************************************

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)

------

Active? Ch#1,2,3 No No No No No No No No No

Sales Volume, Ch#1 0 0 0 0

Sales Volume, Ch#2 0 0 0 0

Sales Volume, Ch#3 0 0 0 0

Unfilled Orders 0 0 0 0

Price, Ch#1,2,3 0 0 0 250 450 400 250 450 400 250 450 400

Revenues 0 0 0 0

- Product Costs 0 0 0 0

- Order Processing 0 0 0 0

- Replacement Parts 0 0 0 0

- RFID Costs 0 0 0 0

- Duties & Tariffs 0 0 0 0

------

Gross Margin 0 0 0 0

Gross Margin % 0.0% 0.0% 0.0% 0.0%

Fixed Costs:

Administrative O/H 0 0 0 0

Forecast Inaccuracy 0 0 0 0

Marketing, Ch#1 0 0 0 0

Marketing, Ch#2 0 0 0 0

Marketing, Ch#3 0 0 0 0

Marketing Creative 0 0 0 0

Price Changes 0 0 0 0

Service Outsourcing 0 0 0 0

Total Fixed Costs 0 0 0 0

------

Operating Income 0 0 0 0

======

Distribution Center? 2 Owned 0 None 0 None

RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced

Emergency Carrier N N

Sales Volume Forecast, Ch#1 0 0 0

Sales Volume Forecast, Ch#2 0 0 0

Sales Volume Forecast, Ch#3 0 0 0

Service: Service Outsourcing 2 Standard 2 Standard 2 Standard

Product 6-4 Configuration: M11101

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

PRODUCT 6-4 P&L STATEMENT, QUARTER 6 (MARKETING PROGRAM DETAILS) PAGE 12

*****************************************************************************

Region 1 Region 2 Region 3

( U.S.A.) ( Europe) ( Pacific)

------

Marketing Program, Channel #1:

Marketing Spending: 0 0 0

Advertising Spending 0 0 0

Promotion Spending 0 0 0

Sales Force Spending 0 0 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 0 0 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 0.00 0.00 0.00

Marketing Program, Channel #2:

Marketing Spending: 0 0 0

Advertising Spending 0 0 0

Promotion Spending 0 0 0

Sales Force Spending 0 0 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 0 0 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 0.00 0.00 0.00

Marketing Program, Channel #3:

Marketing Spending: 0 0 0

Advertising Spending 0 0 0

Promotion Spending 0 0 0

Sales Force Spending 0 0 0

Marketing Mix Allocation 403030 403030 403030

Positioning 37 37 37

Promotional Program 49 49 49

Sales Force Spending ($/Quarter) 0 0 0

Sales Force O/H Rate 2.50 2.50 2.50

Sales Force Salary ($/Month) 3,250 3,250 3,250

Sales Force Size 0.00 0.00 0.00

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

BALANCE SHEET, QUARTER 6 PAGE 13

*****************************************************************************

ASSETS

------

Cash 3,881,802

Marketable Securities 0

Finished Goods Inventory:

Plant & DC1: Product 6-1 ( 38,021 units @ 180.00/unit) 6,843,780

Product 6-2 ( 36,709 units @ 282.50/unit) 10,370,292

Product 6-3 ( 0 units @ 0.00/unit) 0

Product 6-4 ( 0 units @ 0.00/unit) 0

Plant Investment 125,000,000

Total Assets 146,095,874

LIABILITIES AND EQUITIES

------

Corporate Capitalization 100,000,000

Dividends, Current Quarter -709,522

Dividends, Cumulative Prior To This Quarter -3,668,885

Loans 35,879,586

Retained Earnings, Current Quarter 2,365,074

Retained Earnings, Cumulative Prior To This Quarter 12,229,621

Total Liabilities and Equities 146,095,874

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

CASH FLOW ANALYSIS REPORT, QUARTER 6 PAGE 14

*****************************************************************************

Starting "Cash" Balance (Final "Cash" Balance, Quarter 5) 3,741,116

+ Marketable Securities (Converted To "Cash" In Quarter 5) 0

- "Loans" (Liquidated During Quarter 5) -35,484,502

+ "Finished Goods Inventory" Changes:

Product 6-1 (From 6,218,640 To 6,843,780) -625,140

Product 6-2 (From 9,085,482 To 10,370,292) -1,284,810

Product 6-3 (From 0 To 0) 0

Product 6-4 (From 0 To 0) 0

+ "Plant Investment" Changes 0

+ "Net Income" 2,365,074

= Preliminary "Cash" Balance -31,288,262

- "Dividends" (Paid at End of Quarter 6) -709,522

= Actual "Cash" Balance (End of Quarter 6) -31,997,784

- Operating "Cash" Excess (To "Marketable Securities") 0

+ Operating "Cash" Deficit (From "Loans") 35,879,586

= Final "Cash" Balance (End of Quarter 6) 3,881,802

Notes:

(1) "Marketable Securities" and "Loans" refer to the values on last

quarter's balance sheet.

(2) Investment changes can be positive, negative, or zero. A positive

(negative) {zero}. Investment change corresponds to an increase (a

decrease) {no change} in the dollar value of the investment from last

quarter to this quarter which leads to a decrease (an increase)

(no change) in current-quarter "Cash" balance.

(3) At most, one of Operating "Cash" Excess and Operating "Cash" Deficit will

be non-zero; it is possible for both to be zero. Recall that "Cash" must

be between 5.0% and 10.0% of current-quarter sales revenues. Excess

"Cash" (above 10.0% of revenues) is invested in "Marketable Securities";

shortfalls in "Cash" (below 5.0% of revenues) result in "Loans."

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

FINISHED GOODS INVENTORY REPORT, QUARTER 6 PAGE 15

*****************************************************************************

Product Product Product Product

6-1 6-2 6-3 6-4

------

PLANT/DC1 FG INVENTORY

------

Beginning Inventory 34,548 32,161 0 0

+ Regular Production 120,000 75,000 0 0

+ Emergency Production 0 0 0 0

= Available Inventory 154,548 107,161 0 0

- Sales, Region 1 -47,579 -34,906 0 0

- Sales, Other Regions -68,948 -35,546 0 0

= Ending Inventory 38,021 36,709 0 0

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

SERVICE CENTER OPERATIONS REPORT, QUARTER 6 PAGE 16

*****************************************************************************

All Region Region Region

Regions 1 2 3

------

======

ACTIVITY REPORT

======

PRODUCT 6-1

Calls 140,868 57,360 32,949 50,559

CSR Cost/Call 11.54 10.00 12.00 13.00

PRODUCT 6-2

Calls 84,924 43,618 20,590 20,716

CSR Cost/Call 11.22 10.00 12.00 13.00

PRODUCT 6-3

Calls 0 0 0 0

CSR Cost/Call 0.00 0.00 0.00 0.00

PRODUCT 6-4

Calls 0 0 0 0

CSR Cost/Call 0.00 0.00 0.00 0.00

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

TRANSPORTATION COST REPORT, QUARTER 6 PAGE 17

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======Surface Air Emergency

SUB-ASSEMBLY ------

COMPONENTS Cost Volume Cost Volume Cost Volume Total Cost

======------

Plant/DC1: Gamma 4.00 0 4.00 0 4.00 132,809 531,236

Delta 4.00 0 4.00 0 4.00 93,701 374,804

Epsilon 6.00 0 6.00 0 6.00 217,894 1,307,364

CUSTOMER SHIPMENTS

Region 1, Channel 1 ( 30,489 units @ $ 4.00/unit) 121,956

Region 1, Channel 2 ( 18,465 units @ $ 8.00/unit) 147,720

Region 1, Channel 3 ( 33,531 units @ $ 6.00/unit) 201,186

Region 2, Channel 1 ( 22,446 units @ $19.00/unit) 426,474

Region 2, Channel 2 ( 10,676 units @ $30.00/unit) 320,280

Region 2, Channel 3 ( 11,329 units @ $25.00/unit) 283,225

Region 3, Channel 1 ( 35,644 units @ $28.00/unit) 998,032

Region 3, Channel 2 ( 9,375 units @ $39.00/unit) 365,625

Region 3, Channel 3 ( 15,024 units @ $32.00/unit) 480,768

REPLACEMENT PARTS SHIPMENTS TO CUSTOMERS

Region 1, Channel 1 ( 9,171 units @ $ 2.00/unit) 18,342

Region 1, Channel 2 ( 6,478 units @ $ 4.00/unit) 25,912

Region 1, Channel 3 ( 8,997 units @ $ 3.00/unit) 26,991

Region 2, Channel 1 ( 6,854 units @ $ 9.50/unit) 65,112

Region 2, Channel 2 ( 3,894 units @ $15.00/unit) 58,410

Region 2, Channel 3 ( 2,221 units @ $12.50/unit) 27,762

Region 3, Channel 1 ( 11,702 units @ $14.00/unit) 163,828

Region 3, Channel 2 ( 1,853 units @ $19.50/unit) 36,133

Region 3, Channel 3 ( 3,234 units @ $16.00/unit) 51,744

TOTAL TRANSPORTATION COSTS 6,032,904

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

OTHER DECISION VARIABLES REPORT, QUARTER 6 PAGE 18

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======

MANUFACTURING 6-1 6-2 6-3 6-4

======------

Production 120,000 75,000 0 0

Emergency Production Limit 10,000 10,000 10,000 10,000

======Carrier

TRANSPORTATION, PLANT/DC1 ------

SHIPMENTS TO OTHER DCs I J K L M N

======------

Note: Only non-zero plant/DC1 shipments to other DCs are reported.

======

INFORMATION TECHNOLOGY

======

IT Synchronization With Carriers? 000000

Procurement Transactions Report? 0

Product Cost Report? 0

Replacement Parts Demand Report? 0

Retail Pipeline Report? 0

Service Center Statistics Report? 0

Transportation Cost Report? 0

Transportation Report? 0

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

FORECASTING ACCURACY REPORT, QUARTER 6 PAGE 19

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Region Forecast Actual Accuracy

------

Product 6-1, Channel 1 1 16,505 18,047 91.5%

Product 6-1, Channel 2 1 8,494 7,789 90.9%

Product 6-1, Channel 3 1 18,700 21,743 86.0%

Product 6-1, Channel 1 2 9,776 11,376 85.9%

Product 6-1, Channel 2 2 5,270 4,911 92.7%

Product 6-1, Channel 3 2 9,584 11,329 84.6%

Product 6-1, Channel 1 3 16,632 16,933 98.2%

Product 6-1, Channel 2 3 8,054 9,375 85.9%

Product 6-1, Channel 3 3 15,772 15,024 95.0%

Product 6-2, Channel 1 1 12,332 12,442 99.1%

Product 6-2, Channel 2 1 11,036 10,676 96.6%

Product 6-2, Channel 3 1 10,352 11,788 87.8%

Product 6-2, Channel 1 2 10,746 11,070 97.1%

Product 6-2, Channel 2 2 5,536 5,765 96.0%

Product 6-2, Channel 1 3 17,198 18,711 91.9%

SUMMARY: For 15 forecasts, average forecasting accuracy is 92.0%

Note: Forecasts count within the calculation of forecasting accuracy only

if the "actual" value being forecast is greater than 100 for sales volumes

(to not penalize you for "small" forecasts). Otherwise, the relevant values

of "forecast" and "actual" are only reported for reference purposes, but such

forecasts are not counted for forecasting accuracy scoring. This is the

reason why the number of forecasts referenced in "SUMMARY" may be less than

the detailed line-by-line reporting of forecasts.

Product-Specific Product Product Product Product

Forecasting Accuracy Overall 6-1 6-2 6-3 6-4

------

Forecasting Accuracy 92.0% 90.1% 94.8% 0.0% 0.0%

Number of Forecasts 15 9 6 0 0

Region-Specific Region Region Region

Forecasting Accuracy Overall 1 2 3

------

Forecasting Accuracy 92.0% 92.0% 91.3% 92.8%

Number of Forecasts 15 6 5 4

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

FORECASTING ACCURACY REPORT, QUARTER 6 PAGE 20

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Quarter Quarter Quarter Quarter Quarter Quarter

SALES HISTORY 1 2 3 4 5 6

------

REGION 1

Product 6-1H, Ch#1 16,505 18,705 14,726 18,331 18,145 18,047

Product 6-1H, Ch#2 8,494 8,023 9,004 11,039 8,455 7,789

Product 6-1H, Ch#3 18,700 20,508 18,899 20,925 18,333 21,743

Product 6-2M, Ch#1 12,332 10,492 11,613 13,216 13,693 12,442

Product 6-2M, Ch#2 11,036 12,883 10,257 11,507 11,788 10,676

Product 6-2M, Ch#3 10,352 9,544 11,194 11,858 10,122 11,788

REGION 2

Product 6-1H, Ch#1 9,776 10,279 9,968 12,169 10,052 11,376

Product 6-1H, Ch#2 5,270 5,255 5,185 5,684 5,860 4,911

Product 6-1H, Ch#3 9,584 11,515 9,830 10,384 9,664 11,329

Product 6-2M, Ch#1 10,746 10,519 9,354 11,737 10,464 11,070

Product 6-2M, Ch#2 5,536 4,365 6,829 6,337 6,350 5,765

REGION 3

Product 6-1H, Ch#1 16,632 17,009 13,640 23,457 15,427 16,933

Product 6-1H, Ch#2 8,054 6,820 8,084 8,875 7,362 9,375

Product 6-1H, Ch#3 15,772 14,391 18,751 16,720 15,191 15,024

Product 6-2M, Ch#1 17,198 17,988 20,304 14,390 18,835 18,711

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

SET-TOP BOX INDUSTRY BULLETIN, QUARTER 6 PAGE 21

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Welcome to the quarter 6 issue of the Set-Top Box Industry Bulletin.

Notable set-top box industry developments are highlighted in the Bulletin.

INDUSTRY NEWS HEADLINES

Total industry MCM profits were 15,687,955 this quarter.

Firm 1 leads industry MCM in market share (17.1%).

Firm 5 has the second-highest market share in industry MCM (17.0%).

Industry MCM inventory investment increased from 92,560,369 to

102,731,781 this quarter.

Total industry MCM research study spending was 0 this quarter.

DISTRIBUTION CENTER ACTIVITY

No distribution centers were opened this quarter.

No distribution centers were closed this quarter.

PRODUCT LAUNCHES AND "UNLAUNCHES"

No products were introduced this quarter.

No products were "unlaunched" (dropped) this quarter.

PLANT-DC SURFACE TRANSPORTATION DELIVERY RELIABILITY

------

Carrier I Carrier J Carrier K Carrier L Carrier M Carrier N

------

Region 2 69.2% 41.4% + 70.0% 75.1% 63.1% 73.0%

Region 3 69.9% 29.2% 60.9% 59.8% 73.8% 68.9% -

Notes: These estimates of plant-DC surface transportation delivery

reliability (performance) are derived from shipping industry benchmarking

studies for product categories like set-top boxes. "+" ("-") after a figure

denotes an increase (a decrease) since last quarter of at least 1% but no

more than 2.5%; "++" ("--") after a figure denotes an increase (a decrease)

since last quarter of more than 2.5%.

PLANT-DC-CUSTOMER TRANSPORTATION/SHIPPING COSTS: Quarter 7

Channel 1 Channel 2 Channel 3

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

SET-TOP BOX INDUSTRY BULLETIN, QUARTER 6 PAGE 22

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------

Surface Air Surface Air Surface Air

------

Region 1 Costs

------

DC1 To Region 1 Customers 4.00 8.00 6.00

DC1 To Region 2 Customers 20.00 31.00 26.00

DC1 To Region 3 Customers 29.00 39.00 32.00

Region 2 Costs (With DC2)

------

DC1 To DC2 Via Carrier I 5.00 8.00 5.00 8.00 5.00 8.00

DC1 To DC2 Via Carrier J 2.50 11.00 2.50 11.00 2.50 11.00

DC1 To DC2 Via Carrier K 4.50 9.00 4.50 9.00 4.50 9.00

DC1 To DC2 Via Carrier L 7.00 10.50 7.00 10.50 7.00 10.50

DC1 To DC2 Via Carrier M 3.75 7.35 3.75 7.35 3.75 7.35

DC1 To DC2 Via Carrier N 8.50 14.00 8.50 14.00 8.50 14.00

DC2 To Region 2 Customers 6.00 12.00 8.00

Region 3 Costs (With DC3)

------

DC1 To DC3 Via Carrier I 9.50 13.50 9.50 13.50 9.50 13.50

DC1 To DC3 Via Carrier J 2.50 14.00 2.50 14.00 2.50 14.00

DC1 To DC3 Via Carrier K 4.50 15.00 4.50 15.00 4.50 15.00

DC1 To DC3 Via Carrier L 4.50 13.00 4.50 13.00 4.50 13.00

DC1 To DC3 Via Carrier M 6.00 15.00 6.00 15.00 6.00 15.00

DC1 To DC3 Via Carrier N 10.50 18.00 10.50 18.00 10.50 18.00

DC3 To Region 3 Customers 8.00 16.00 12.00

Notes: These plant-DC-customer transportation/shipping costs include "local"

and DC1 sourcing options for all available carriers (I,J,K,L,M,N), channels,

and regions (R1-R3) for finished goods inventory. These costs update the

corresponding costs in Exhibits 9 and 10 in the LINKS participant's manual.

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

SPECIAL MESSAGES ABOUT YOUR LINKS VERSION, QUARTER 6 PAGE 23

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------

MARKETING SPENDING CONSTRAINT

------

A marketing spending constraint exists within LINKS. Your total marketing

spending this quarter for all products, channels, and regions must not

exceed 10.0% of your revenues from last quarter. For your reference:

Current Revenues = 77,636,040

Current Marketing Spending = 5,400,000

Marketing Spending Constraint Next Quarter = 7,763,604

If you inadvertently violate your marketing spending constraint, marketing

spending will be automatically reduced pro-rata to meet your marketing

spending constraint. There is no explicit cost associated with such a

marketing spending violation.

------

PLANT-DC SURFACE TRANSPORTATION DELIVERY RELIABILITY

------

Plant-DC surface transportation delivery reliability may vary through time.

Best estimates of current plant-DC surface transportation performance for all

carriers are shown in the "Set-Top Box Industry Bulletin."

------

PLANT-DC TRANSPORTATION/SHIPPING COSTS

------

Plant-DC shipping costs (including direct shipments from the plant to final

customers in region 1 and in other regions without a "local" DC) change

through time in response to general economic conditions and demand-supply

conditions in transportation/shipping markets. See the "Set-Top Box Industry

Bulletin" for the current shipping costs in the set-top box industry.

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM

DECISION VARIABLE CHECKS AND MESSAGES, QUARTER 6 PAGE 24

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FORECASTING DECISION VARIABLE CHECKS [Firm MCM6]

15 forecasts are unchanged. Forecasts are normally changed every quarter.

RESEARCH STUDIES DECISION VARIABLE CHECKS [Firm MCM6]

No research studies have been ordered.

Research studies are normally ordered every quarter.

INVENTORY CHARGES DETAILS

$ Begin $ End $ Average Inventory Inventory

Inventory Inventory Inventory Cost (%) Charges

------

DC1: FinGoods 6-1 6,218,640 6,843,780 6,531,210 3.0 195,936

DC1: FinGoods 6-2 9,085,482 10,370,292 9,727,887 3.0 291,836

Total Inventory Charges (Reported on the Corporate P&L Statement) 487,772

PRODUCTION SHIFTS AND PLANT CAPACITY FC CALCULATION DETAILS

Production 6-1 = 120,000 units.

Production 6-2 = 75,000 units.

Total Production = 195,000 units.

Production Shifts = 4.

Plant Capacity FC = 1,200,000.