<PAGE>
 
                               1995 ANNUAL REPORT
<PAGE>
 
                                              1995
--------------------------------------------------------------------------------
Prudential-Bache/                             Annual
Watson & Taylor, Ltd.-I                       Report

<PAGE>
 
                    PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-I
                               1995 Annual Report
 
                                       1
<PAGE>
 
                         REPORT OF INDEPENDENT AUDITORS
 
To the Partners
Prudential-Bache/Watson & Taylor, Ltd.-I
 
We have audited the accompanying statements of financial condition of
Prudential-Bache/Watson & Taylor, Ltd.-I as of December 31, 1995 and 1994, and
the related statements of operations, changes in partners' capital, and cash
flows for each of the three years in the period ended December 31, 1995. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
 
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial condition of Prudential-Bache/Watson &
Taylor, Ltd.-I as of December 31, 1995 and 1994, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 1995, in conformity with generally accepted accounting principles.
 
As discussed in Note B to the financial statements, in 1995, the Partnership
changed its method of accounting for the carrying value of real estate by
adopting Statement of Financial Accounting Standards No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.
 
Ernst & Young
New York, New York
February 16, 1996
 
                                       2
 <PAGE>
<PAGE>
 
                    PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-I
                            (a limited partnership)
                       STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
                                                                               December 31,
                                                                       -----------------------------
                                                                           1995             1994
<S>                                                                    <C>              <C>
----------------------------------------------------------------------------------------------------
ASSETS
Land                                                                   $ 2,960,536      $ 2,960,536
Buildings and improvements                                               9,528,828        9,347,790
Furniture, fixtures and equipment                                          499,910          489,045
Less: Accumulated depreciation                                          (5,938,553 )     (5,580,646 )
                                                                       ------------     ------------
Property                                                                 7,050,721        7,216,725
Cash and cash equivalents                                                  838,954          760,357
Other assets                                                                 7,782            9,069
                                                                       ------------     ------------
Total assets                                                           $ 7,897,457      $ 7,986,151
                                                                       ------------     ------------
                                                                       ------------     ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accrued real estate taxes                                              $   238,178      $   227,374
Accounts payable and accrued expenses                                      100,490           81,025
Unearned rental income                                                      81,263           84,236
Due to affiliates, net                                                      33,171           29,183
Deposits due to tenants                                                     28,635           23,071
                                                                       ------------     ------------
Total liabilities                                                          481,737          444,889
                                                                       ------------     ------------
Contingencies
Partners' capital
Limited partners (29,187 limited and equivalent units issued and
  outstanding)                                                           7,320,693        7,444,980
General partners                                                            95,027           96,282
                                                                       ------------     ------------
Total partners' capital                                                  7,415,720        7,541,262
                                                                       ------------     ------------
Total liabilities and partners' capital                                $ 7,897,457      $ 7,986,151
                                                                       ------------     ------------
                                                                       ------------     ------------
----------------------------------------------------------------------------------------------------
                  The accompanying notes are an integral part of these statements
</TABLE>
 
                                       3
 <PAGE>
<PAGE>
 
                    PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-I
                            (a limited partnership)
                            STATEMENTS OF OPERATIONS
 
<TABLE>
<CAPTION>
                                                                    Year ended December 31,
                                                            ----------------------------------------
                                                               1995           1994           1993
<S>                                                         <C>            <C>            <C>
----------------------------------------------------------------------------------------------------
REVENUES
Rental income                                               $2,412,547     $2,303,102     $2,199,480
Interest                                                        20,018         16,173         13,970
                                                            ----------     ----------     ----------
                                                             2,432,565      2,319,275      2,213,450
                                                            ----------     ----------     ----------
EXPENSES
Property operating                                             695,643        651,805        563,922
Depreciation                                                   357,907        330,549        326,429
General and administrative                                     287,831        275,361        335,484
Real estate taxes                                              236,974        226,543        233,467
                                                            ----------     ----------     ----------
                                                             1,578,355      1,484,258      1,459,302
                                                            ----------     ----------     ----------
Net income                                                  $  854,210     $  835,017     $  754,148
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
ALLOCATION OF NET INCOME
Limited partners                                            $  845,668     $  826,667     $  746,607
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
General partners                                            $    8,542     $    8,350     $    7,541
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
Net income per limited partnership unit                     $    29.12     $    28.47     $    25.71
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
----------------------------------------------------------------------------------------------------
</TABLE>
 
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
<TABLE>
<CAPTION>
                                                             LIMITED         GENERAL
                                                            PARTNERS        PARTNERS         TOTAL
<S>                                                        <C>             <C>             <C>
-----------------------------------------------------------------------------------------------------
Partners' capital--December 31, 1992                       $ 7,934,444     $   101,238     $8,035,682
Net income                                                     746,607           7,541        754,148
Distributions                                               (1,032,385)        (10,440)    (1,042,825)
                                                           -----------     -----------     ----------
Partners' capital--December 31, 1993                         7,648,666          98,339      7,747,005
Net income                                                     826,667           8,350        835,017
Distributions                                               (1,030,353)        (10,407)    (1,040,760)
                                                           -----------     -----------     ----------
Partners' capital--December 31, 1994                         7,444,980          96,282      7,541,262
Net income                                                     845,668           8,542        854,210
Distributions                                                 (969,955)         (9,797)      (979,752)
                                                           -----------     -----------     ----------
Partners' capital--December 31, 1995                       $ 7,320,693     $    95,027     $7,415,720
                                                           -----------     -----------     ----------
                                                           -----------     -----------     ----------
-----------------------------------------------------------------------------------------------------
                   The accompanying notes are an integral part of these statements
</TABLE>
 
                                       4
 <PAGE>
<PAGE>
 
                    PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-I
                            (a limited partnership)
                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                    Year ended December 31,
                                                           ------------------------------------------
                                                              1995           1994            1993
<S>                                                        <C>            <C>             <C>
-----------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Rental income and deposits received                        $2,416,425     $ 2,284,838     $ 2,175,316
Interest received                                              20,018          16,173          13,970
Property operating expenses paid                             (684,647)       (646,943)       (540,278)
Real estate taxes paid                                       (226,170)       (231,224)       (224,647)
General and administrative expenses paid                     (275,374)       (398,058)       (228,764)
                                                           ----------     -----------     -----------
Net cash provided by operating activities                   1,250,252       1,024,786       1,195,597
CASH FLOWS FROM INVESTING ACTIVITIES
Property improvements                                        (191,903)        (63,258)        (22,436)
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions paid to partners                               (979,752)     (1,056,333)     (1,034,621)
                                                           ----------     -----------     -----------
Net increase (decrease) in cash and cash equivalents           78,597         (94,805)        138,540
Cash and cash equivalents at beginning of year                760,357         855,162         716,622
                                                           ----------     -----------     -----------
Cash and cash equivalents at end of year                   $  838,954     $   760,357     $   855,162
                                                           ----------     -----------     -----------
                                                           ----------     -----------     -----------
-----------------------------------------------------------------------------------------------------
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net income                                                 $  854,210     $   835,017     $   754,148
                                                           ----------     -----------     -----------
Adjustments to reconcile net income to net cash
  provided by operating activities:
Depreciation                                                  357,907         330,549         326,429
Changes in:
Other assets                                                    1,287           2,664          (7,568)
Accounts payable and accrued expenses                          19,465         (77,972)        104,569
Due to affiliates, net                                          3,988         (42,527)         25,795
Accrued real estate taxes                                      10,804          (4,681)          8,820
Unearned rental income                                         (2,973)        (14,297)        (18,371)
Deposits due to tenants                                         5,564          (3,967)          1,775
                                                           ----------     -----------     -----------
Total adjustments                                             396,042         189,769         441,449
                                                           ----------     -----------     -----------
Net cash provided by operating activities                  $1,250,252     $ 1,024,786     $ 1,195,597
                                                           ----------     -----------     -----------
                                                           ----------     -----------     -----------
-----------------------------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE OF NONCASH FINANCING ACTIVITIES
Distributions to partners                                  $ (979,752)    $(1,040,760)    $(1,042,825)
Increase (decrease) in distribution payable                        --         (15,573)          8,204
                                                           ----------     -----------     -----------
Distributions paid to partners                             $ (979,752)    $(1,056,333)    $(1,034,621)
                                                           ----------     -----------     -----------
                                                           ----------     -----------     -----------
-----------------------------------------------------------------------------------------------------
                   The accompanying notes are an integral part of these statements
</TABLE>
 
                                       5
 <PAGE>
<PAGE>
 
                    PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-I
                            (a limited partnership)
                         NOTES TO FINANCIAL STATEMENTS
 
A. General
 
   Prudential-Bache/Watson & Taylor, Ltd.-I (the ``Partnership'') is a Texas
limited partnership formed on October 20, 1982 which will terminate on December
31, 2050 unless terminated sooner under the provisions of the Amended and
Restated Certificate and Agreement of Limited Partnership (the ``Partnership
Agreement''). The Partnership was formed for the purpose of acquiring, owning,
developing and operating mini-storage and combination mini-storage and
office/warehouse facilities. The general partners of the Partnership are
Prudential-Bache Properties, Inc. (``PBP''), a wholly-owned subsidiary of
Prudential Securities Group Inc., George S. Watson, and A. Starke Taylor, III
(collectively, the ``General Partners''). PBP is the Managing General Partner
and is responsible for the day-to-day operations of the Partnership and its
investments. At December 31, 1995, the Partnership owned six properties.
 
B. Summary of Significant Accounting Policies
 
Basis of accounting
 
   The books and records of the Partnership are maintained on the accrual basis
of accounting in accordance with generally accepted accounting principles. The
preparation of financial statements in conformity with generally accepted
accounting principles requires the General Partners to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial
statements as well as the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
 
Property
 
   Effective December 31, 1995, the Partnership adopted Statement of Financial
Accounting Standards (``SFAS'') No. 121, ``Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of.'' Under SFAS No.
121, impairment of properties to be held and used is determined to exist when
estimated amounts recoverable through future operations on an undiscounted basis
are below the properties' carrying value. If a property is determined to be
impaired, it should be recorded at the lower of its carrying value or its
estimated fair value. For properties that are held for sale, SFAS No. 121 states
that they should be recorded at the lower of carrying amount or estimated fair
value less costs to sell. On December 15, 1995, the Management Committee of the
Partnership determined to seek bids for all of the properties held by the
Partnership. Accordingly, effective December 31, 1995, the Partnership has
reclassified its properties from held for use to held for sale and has ceased
depreciating the properties for financial statement purposes only. The adoption
of SFAS No. 121 had no material effect on the financial position of the
Partnership as of December 31, 1995.
 
   The determination of estimated fair value is based, not only upon future cash
flows, which rely upon estimates and assumptions including expense growth,
occupancy and rental rates, but also upon market capitalization and discount
rates as well as other market indicators. The General Partners believe that the
estimates and assumptions used are appropriate in evaluating the carrying amount
of the Partnership's properties. However, changes in market conditions and
circumstances may occur in the near term which would cause these estimates and
assumptions to change, which, in turn, could cause the amounts ultimately
realized upon the sale or other disposition of the properties to differ
materially from their estimated fair value. Such changes may also require
write-downs in future years.
 
   Prior to December 31, 1995, the Partnership carried its property investments
at the lower of depreciated cost or estimated amounts recoverable through future
operations and ultimate disposition of the property. Property investments were
depreciated or amortized using the straight-line method over their estimated
economic lives which range from 5 to 25 years depending on property type. A
provision for loss on impairment of assets would have been recorded when
estimated amounts recoverable through future operations and ultimate disposition
of the property on a undiscounted basis were below depreciated cost. No
provision for loss on impairment of assets has been recorded by the Partnership.
 
                                       6
 <PAGE>
<PAGE>
 
Cash and cash equivalents
 
   Cash and cash equivalents include money market funds whose cost approximates
market value.
 
Income taxes
 
   The Partnership is not required to provide for, or pay, any Federal or state
income taxes. Income tax attributes that arise from its operations are passed
directly to the individual partners. The Partnership may be subject to other
state and local taxes in jurisdictions in which it operates.
 
Profit and loss allocations and distributions
 
   Net income (loss) from operations is allocated and cash from operations is
being distributed 99% to the limited partners and 1% to the General Partners.
 
   Proceeds from the sale of the properties and liquidation of the Partnership
will be distributed in accordance with the Partnership Agreement.
 
   Net income per limited partnership unit is based on 29,040 limited and
equivalent units outstanding, which excludes 147 equivalent units held by PBP
(see Note E) for which PBP has waived all of its rights therein. Per unit
amounts for 1993 have been restated to eliminate the equivalent units held by
PBP.
 
C. Property
 
   The Partnership's property is comprised of the following:
 
<TABLE>
<CAPTION>
                                                                 December 31,
                                                          --------------------------
               <S>                                        <C>             <C>
                                                             1995            1994
                                                          ----------      ----------
               Hempstead--Houston, Texas                  $  673,317      $  704,707
               I-35--Dallas, Texas                         1,232,823       1,285,073
               Northwest Highway--Dallas, Texas            1,151,936       1,203,131
               Pasadena--Houston, Texas                      705,242         620,403
               Reinli--Austin, Texas                       1,794,386       1,862,430
               Santiago--Austin, Texas                     1,493,017       1,540,981
                                                          ----------      ----------
                                                          $7,050,721      $7,216,725
                                                          ----------      ----------
                                                          ----------      ----------
</TABLE>
 
   For the years ended December 31, 1995, 1994 and 1993, respectively, the
following properties' rental revenues exceeded 15% of the Partnership's total
revenue:
 
<TABLE>
<CAPTION>
                                1995     1994     1993
                                ----     ----     ----
<S>                             <C>      <C>      <C>
Reinli                           25 %     25%      24%
I-35                             16       17       17
Northwest Highway                 *       17       17
Santiago                         16       16       16
</TABLE>
 
 * Property's rental revenue was 15% or less of the Partnership's total revenue
                                 for the year.
 
   No single tenant accounted for 10% or more of the total revenue for any of
the three years in the period ended December 31, 1995.
 
D. Minimum Future Lease Revenues
 
   The Partnership earns a majority of its rental income from month-to-month and
other short-term leasing arrangements. The Partnership also has certain
noncancellable operating leases on the Partnership's properties. The minimum
future rental revenues receivable under these noncancellable operating leases
are approximately $685,000 and $61,000 for the years ended December 31, 1996 and
1997, respectively.
 
E. Related Parties
 
   PBP and its affiliates perform services for the Partnership which include,
but are not limited to: accounting and financial management, transfer and
assignment functions, asset management, investor communications, printing and
other administrative services. PBP and its affiliates receive reimbursements for
costs
                                       7
 <PAGE>
<PAGE>
incurred in connection with these services, the amount of which is limited by
the provisions of the Partnership Agreement. The costs and expenses incurred on
behalf of the Partnership which are reimbursable to PBP and its affiliates for
the years ended December 31, 1995, 1994 and 1993 were approximately $105,000,
$81,000 and $114,000, respectively.
 
   Affiliates of Messrs. Watson and Taylor, the individual General Partners,
also perform certain administrative and monitoring functions on behalf of the
Partnership. In 1994, the Partnership recorded approximately $31,000 for the
reimbursement of certain prior periods' general, administrative and monitoring
expenses incurred by affiliates of the individual General Partners.
Approximately $21,000 was incurred in 1995.
 
   PBP and the individual General Partners of the Partnership, own 147, 73 and
73 equivalent limited partnership units, respectively. PBP receives funds from
the Partnership, such as General Partner distributions and reimbursement of
expenses, but has waived all of its rights resulting from its ownership of
equivalent limited partnership units. Accordingly, the 147 units owned by PBP
have been excluded from the calculation of net income per limited partnership
unit and distributions per limited partnership unit.
 
   Prudential Securities Incorporated (``PSI''), an affiliate of PBP, owns 406
limited partnership units at December 31, 1995.
 
F. Income Taxes
 
   The following is a reconciliation of net income for financial reporting
purposes to net income for tax reporting purposes:
 
<TABLE>
<CAPTION>
                                                                            December 31
                                                                ------------------------------------
<S>                                                             <C>          <C>           <C>
                                                                  1995         1994          1993
                                                                --------     ---------     ---------
Net income per financial statements                             $854,210     $ 835,017     $ 754,148
Rent received in advance, net of reversal of prior year
  amount                                                          (2,973)      (14,297)      (18,371)
Tax depreciation and amortization in excess of book amounts     (122,193)     (144,134)     (222,284)
                                                                --------     ---------     ---------
Tax basis net income                                            $729,044     $ 676,586     $ 513,493
                                                                --------     ---------     ---------
                                                                --------     ---------     ---------
</TABLE>
 
   The differences between the tax basis and book basis of partners' capital are
primarily attributable to the cumulative effect of the book to tax income
adjustments.
 
G. Contingencies
 
   By order of the Judicial Panel on Multidistrict Litigation dated April 14,
1994, a number of purported class actions then pending in various federal
district courts were transferred to a single judge of the United States District
Court for the Southern District of New York and consolidated for pretrial
proceedings under the caption In re Prudential Securities Incorporated Limited
Partnerships Litigation (MDL Docket 1005). On June 8, 1994, plaintiffs in the
transferred cases filed a complaint that consolidated the previously filed
complaints and named as defendants, among others, PSI, certain of its present
and former employees and PBP. The Partnership was not named a defendant in the
consolidated complaint, but the name of the Partnership was listed as being
among the limited partnerships at issue in the case.
 
   On August 9, 1995, PBP, PSI and other Prudential defendants entered into a
Stipulation and Agreement of Partial Compromise and Settlement with legal
counsel representing plaintiffs in the consolidated actions. The court
preliminarily approved the settlement agreement by order dated August 29, 1995
and, following a hearing held November 17, 1995, found that the agreement was
fair, reasonable, adequate and in the best interests of the plaintiff class. The
court gave final approval to the settlement, certified a class of purchasers of
specific limited partnerships, including the Partnership, released all settled
claims by members of the class against the PSI settling defendants and
permanently barred and enjoined class members from instituting, commencing or
prosecuting any settled claim against the released parties. The full amount due
under the settlement agreement has been paid by PSI.
 
H. Subsequent Event
 
   In February 1996, distributions of approximately $243,000 and $ 2,000 were
paid to the limited partners and to the General Partners, respectively, for the
quarter ended December 31, 1995.
 
                                       8
 <PAGE>
<PAGE>
 
                    PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-I
                            (a limited partnership)
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS
 
Liquidity and Capital Resources
 
   The Partnership owns and operates two mini-storage facilities and four
combination mini-storage and office/warehouse facilities. On December 15, 1995,
the Management Committee of the Partnership determined to seek bids for all the
properties held by the Partnership. As of March 22, 1996, preliminary bids have
been received for all properties. If bids for the properties are deemed
acceptable by the Partnership, the Partnership intends to enter into agreements
to sell the properties, subject to the approval of the limited partners owning a
majority of the Units as required by the Partnership Agreement. If such sales
are approved and consummated, the Partnership will liquidate and distribute its
net assets to its partners. There can, of course, be no assurance that
acceptable bids will be received or that any transactions will be consummated.
 
   During the year ended December 31, 1995, the Partnership's cash and cash
equivalents increased by approximately $79,000 due to cash flow from property
operations in excess of capital expenditures and distributions to partners.
Distributions during the year ended December 31, 1995 totaled approximately
$980,000, of which $970,000 was paid to the limited partners and $10,000 to the
General Partners. These distributions were funded from property operations.
 
   The Partnership's ability to make future distributions to the partners and
the amount that may be made will be affected not only by the amount of cash
generated by the Partnership from operations of its properties, but also by the
amount expended for property improvements and the amount set aside for
anticipated property improvements. Property improvements are currently budgeted
at approximately $150,000 for 1996.
 
Results of Operations
 
   Average occupancy rates for the years ended December 31, 1995, 1994 and 1993
were as follows:
<TABLE>
<CAPTION>
                              December 31,
                         ----------------------
Property                 1995     1994     1993
<S>                      <C>      <C>      <C>
-----------------------------------------------
Hempstead                89.3%    89.7%    85.8%
Pasadena                 87.8     85.1     86.8
Northwest Highway        90.3     89.9     85.6
I-35                     91.6     91.5     91.0
Santiago                 95.5     94.6     92.7
Reinli                   95.6     96.3     96.4
-----------------------------------------------
</TABLE>
  (Average occupancy rates are calculated by
averaging the monthly occupancies determined by
 dividing occupied square footage by available
     square footage as of each month-end.)
 
1995 vs 1994
 
   Net income increased by $19,000 for the year ended December 31, 1995 as
compared to the year ended December 31, 1994 for the reasons discussed below.
 
   Rental income increased by approximately $109,000 for the year ended December
31, 1995 as compared to the year ended December 31, 1994. The increase in rental
income is primarily due to higher rental rates at all the properties.
 
   Property operating expenses increased by approximately $44,000 for the year
ended December 31, 1995 compared to the year ended December 31, 1994. This is
due primarily to increases in property level payroll costs at all of the
properties and an increase in utility expense at Reinli and Northwest Highway
partially offset by decreases in repairs and maintenance expense at Hempstead
and Pasadena. Management fees also increased because they are based on rental
income.
 
                                       9
 <PAGE>
<PAGE>
 
   General and administrative expenses increased by approximately $12,000 for
the year ended December 31, 1995 as compared to the year ended December 31, 1994
primarily due to increased professional fees and higher costs associated with
administering the Partnership.
 
1994 vs 1993
 
   Net income increased by approximately $81,000 for the year ended December 31,
1994 as compared to the year ended December 31, 1993 for the reasons discussed
below.
 
   Rental income increased by approximately $104,000 for the year ended December
31, 1994 as compared to the year ended December 31, 1993. Rental income
increased at the I-35 and Reinli properties due to higher rental rates; and at
the Northwest Highway and Santiago properties due to higher average occupancies.
Rental income decreased at the Pasadena property because of lower rental rates.
Rental income at the Hempstead property remained stable as the effect of higher
average occupancy rates was offset by lower rental rates.
 
   Property operating expenses increased by approximately $88,000 for the year
ended December 31, 1994 compared to the year ended December 31, 1993 due
primarily to an increase in property level payroll costs, insurance and utility
rates and repairs and maintenance expenses for projects at the Hempstead and
Santiago properties.
 
   General and administrative expenses decreased approximately $60,000 for the
year ended December 31, 1994 as compared to the year ended December 31, 1993
primarily due to a decrease in legal costs.
 
                                       10
 <PAGE>
<PAGE>
 
                               OTHER INFORMATION
 
The Partnership's Annual Report on Form 10-K as filed with the Securities and
Exchange Commission is available to limited partners without charge upon written
request to:
 
        Prudential-Bache/Watson & Taylor, Ltd.-I
        P.O. Box 2016
        Peck Slip Station
        New York, New York 10272-2016
 
                                       11
 <PAGE>

<PAGE>
Peck Slip Station
                                   BULK RATE
P.O. Box 2016
                                  U.S. POSTAGE
New York, NY 10272
                                      PAID
                                 Automatic Mail
 
PBW&T1/171640
 <PAGE>