<HTML>
<HEAD>
 <TITLE>FORM 10-K</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">
 <P></P>
 <P> </P>
 <HR NOSHADE ALIGN="center" SIZE="2"><HR NOSHADE ALIGN="center" SIZE="2"><P>
    </P>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>SECURITIES AND EXCHANGE COMMISSION
 <BR>
 </FONT><FONT
 SIZE=3>WASHINGTON, D.C. 20549</FONT></H1>

 <A NAME="A003"></A>
 <H1 ALIGN=CENTER><FONT
 SIZE="5">FORM 10-K</FONT></H1>
 <TABLE WIDTH="100%" BORDER="0" ALIGN="center">
  <TR>
   <TD VALIGN="top" WIDTH="10%">[X]  </TD>
   <TD> <DIV ALIGN="center"><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
   <BR>
   <FONT
   SIZE=3>THE SECURITIES EXCHANGE ACT OF 1934</FONT> </B></DIV>
   </TD>
   <TD WIDTH="10%"> </TD>
  </TR>
 </TABLE>
 <H1 ALIGN=left><FONT
 SIZE=3>For the Fiscal Year Ended December 31, 1999</FONT></H1>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>OR</FONT></H1>
 <TABLE WIDTH="100%" BORDER="0" ALIGN="center">
  <TR>
   <TD VALIGN="top" WIDTH="10%">[   ]  </TD>
   <TD> <DIV ALIGN="center"><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
   <BR>
   <FONT
   SIZE=3>OF THE SECURITIES EXCHANGE ACT OF 1934</FONT> </B></DIV>
   </TD>
   <TD WIDTH="10%"> </TD>
  </TR>
 </TABLE>
 <H1 ALIGN=left><FONT
 SIZE=3>For the Transition Period From ____________ to _____________</FONT></H1>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>Commission File Number 1-457</FONT></H2>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" ALIGN="center">
  <TR VALIGN="bottom">
   <TD ALIGN="CENTER" COLSPAN="3" WIDTH="33%"><B><FONT
   SIZE="6">BULOVA CORPORATION</FONT></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="99%" ALIGN="CENTER" COLSPAN="3"><B><FONT
   SIZE=3>(Exact name of registrant as specified in its charter)</FONT><FONT
   SIZE="6"></FONT></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="CENTER"><B></B></TD>
   <TD WIDTH="33%" ALIGN="CENTER"> </TD>
   <TD WIDTH="33%" ALIGN="CENTER"><B></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="CENTER"><B>New York</B></TD>
   <TD WIDTH="33%" ALIGN="CENTER"> </TD>
   <TD WIDTH="33%" ALIGN="CENTER"><B>11-1719409</B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP WIDTH="33%"><B>(State or other jurisdiction
     of</B></TD>
   <TD ALIGN="CENTER" WIDTH="33%"> </TD>
   <TD ALIGN="CENTER" WIDTH="33%"><B>Employer</B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP WIDTH="33%"><B>incorporation or
     organization)</B></TD>
   <TD ALIGN="CENTER" WIDTH="33%"> </TD>
   <TD ALIGN="CENTER" NOWRAP WIDTH="33%"><B>Identification No.)</B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP WIDTH="33%"> </TD>
   <TD ALIGN="CENTER" WIDTH="33%"> </TD>
   <TD ALIGN="CENTER" NOWRAP WIDTH="33%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B><FONT
   SIZE=3>One Bulova Avenue, Woodside, New York 11377-7874
   <BR>
   (Address of principal executive offices) (Zip Code)</FONT> </B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP WIDTH="33%"><B></B></TD>
   <TD ALIGN="CENTER" WIDTH="33%"> </TD>
   <TD ALIGN="CENTER" NOWRAP WIDTH="33%"><B></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B><FONT
   SIZE=3>(718) 204-3300
   <BR>
   (Registrant’s telephone number, including area code</FONT></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B><FONT
   SIZE=3>Securities registered pursuant to Section 12(b) of the Act:
     None</FONT></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B>Securities registered
     pursuant to Section 12(g) of the Act:</B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B></B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="CENTER" NOWRAP COLSPAN="3" WIDTH="33%"><B><FONT
   SIZE=3>Common Stock, par value $5.00 per share
   <BR>
   (Title of Class)</FONT></B></TD>
  </TR>
 </TABLE>

 <BR>
 <B>     Indicate by check mark if disclosure of
   delinquent filers pursuant to Item 405 of Regulation S-K is not contained
   herein, and will not be contained, to the best of registrant’s
   knowledge, in definitive proxy or information statements incorporated by
   reference in Part III of this Form 10-K or any amendment to this Form 10-K.
   [X]</B>  <P>     <B>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.</B> </P>

 <TABLE WIDTH="300" BORDER="0" CELLSPACING="0" CELLPADDING="0" ALIGN="center">
  <TR>
   <TD VALIGN="top" WIDTH="10%"> <DIV ALIGN="right"><B><FONT
   SIZE=3>Yes </FONT></B></DIV>
   </TD>
   <TD WIDTH="15%"> <DIV ALIGN="center"><B><FONT
   SIZE=3>X</FONT></B></DIV>
   <FONT
   SIZE=3> <HR SIZE=1 WIDTH=80% COLOR=black NOSHADE ALIGN="center"> </FONT></TD>
   <TD VALIGN="top"> <DIV ALIGN="right"><B><FONT
   SIZE=3>No<I> </I></FONT></B></DIV>
   </TD>
   <TD WIDTH="15%">
   <BR>
   <HR SIZE=1 WIDTH=80% COLOR=black NOSHADE ALIGN="center"> </TD>
  </TR>
 </TABLE>
 <P>     As at February 25, 2000, 4,599,857 shares of
   Common Stock of the Registrant were outstanding and the aggregate market
   value of voting stock held by non-affiliates was approximately $2,870,000.
   </P>
 <HR NOSHADE ALIGN="center" SIZE="2"><HR NOSHADE ALIGN="center" SIZE="2"><P
   ALIGN="center">1</P>
 <P> </P>
 <P></P>
 <P> </P>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>BULOVA CORPORATION</FONT></H1>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>INDEX TO ANNUAL REPORT ON
 <BR>
 </FONT><FONT
 SIZE=3>FORM 10-K FILED WITH THE</FONT>
 <BR>
 <FONT
 SIZE=3>SECURITIES AND EXCHANGE COMMISSION</FONT></H1>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>For The Year Ended December 31, 1999</FONT></H1>

 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="90%" ALIGN="center">
  <TR VALIGN="BOTTOM">
   <TH HEIGHT="90%" COLSPAN="2"> <DIV ALIGN="center">Item No. </DIV>
   <HR WIDTH=90% SIZE=1 COLOR=BLACK NOSHADE> </TH>
   <TH WIDTH="5%" HEIGHT="%"> </TH>
   <TH WIDTH="83%" HEIGHT="%">
   <BR>
   PART I</TH>
   <TH COLSPAN="2" HEIGHT="%">Page
   <BR>
   No. <HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE> </TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="RIGHT" HEIGHT="2" COLSPAN="2"> </TD>
   <TD WIDTH="5%" ALIGN="RIGHT" HEIGHT="2"> </TD>
   <TD WIDTH="83%" ALIGN="RIGHT" HEIGHT="2"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">1 </TD>
   <TD WIDTH="5%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="83%" ALIGN="LEFT" HEIGHT="%">
   <A HREF="#847tx1">BUSINESS</A>
   </TD>
   <TD WIDTH="5%" ALIGN="RIGHT" HEIGHT="%">3 </TD>
   <TD WIDTH="3%" ALIGN="RIGHT" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">2 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx2">PROPERTIES</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%">4 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">3 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx3">LEGAL PROCEEDINGS</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%">4 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">4 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx4">SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%">4 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> <DIV ALIGN="center"><B>PART
     II</B></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">5 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx5">MARKET FOR THE REGISTRANT’S COMMON STOCK AND RELATED
   <BR>
      STOCKHOLDER MATTERS</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%" VALIGN="BOTTOM">4 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">6 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx6">SELECTED FINANCIAL DATA</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%">5 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">7 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx7">MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
   <BR>
      CONDITION AND RESULTS OF OPERATIONS</A>
   </TD>
   <TD VALIGN="bottom"> <DIV ALIGN="right">5 </DIV>
   </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">7 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%">A</TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx8">QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
   <BR>
       MARKET RISK</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%" VALIGN="BOTTOM">7 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">8 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx9">FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%">9 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">9 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx10">CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
   <BR>
       ACCOUNTING AND FINANCIAL DISCLOSURE</A>
   </TD>
   <TD VALIGN="bottom"> <DIV ALIGN="right">22 </DIV>
   </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> <DIV ALIGN="center"><B>PART
     III</B></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="24" COLSPAN="2">10 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="24">
   <A HREF="#847tx11">DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="24">22 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="24"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">11 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx12">EXECUTIVE COMPENSATION</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%">23 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">12 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx13">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
   <BR>
       MANAGEMENT</A>
   </TD>
   <TD VALIGN="bottom"> <DIV ALIGN="right">24 </DIV>
   </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">13 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx14">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%">25 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> <DIV ALIGN="CENTER"><B>PART
     IV</B></DIV>
   </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="TOP">
   <TD ALIGN="RIGHT" HEIGHT="%" COLSPAN="2">14 </TD>
   <TD ALIGN="LEFT" WIDTH="5%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="83%" HEIGHT="%">
   <A HREF="#847tx15">EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS
   <BR>
       ON FORM 8-K</A>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="5%" HEIGHT="%" VALIGN="bottom">26 </TD>
   <TD ALIGN="RIGHT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
 </TABLE>
 <P ALIGN="center">2</P>
 <P></P>
 <P> </P>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>PART I</FONT></H1>

 <A NAME="#847tx1"></A>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>Item 1. Business.</FONT></H2>
 <P>     Bulova Corporation (together with its
   subsidiaries referred to herein as “Registrant” or the
   “Company,” unless the context otherwise requires) is a New York
   corporation. Loews Corporation (“Loews”) owns approximately 97% of
   Registrant’s outstanding Common Stock. See Item 12 below of this Form
   10-K. </P>
 <P>     Registrant is engaged in the distribution and
   sale of watches, clocks and timepiece parts for consumer use. The principal
   watch brands are Bulova, Caravelle, Accutron and Sportstime. Clocks are
   principally sold under the Bulova brand name. The Registrant’s product
   breakdown includes a luxury watch line represented by Accutron, a mid-ranged
   priced watch brand represented by Bulova, and a lower-priced watch line
   represented by Caravelle. </P>
 <P>     Bulova’s principal markets are the
   United States and Canada, which accounted for 90% and 10%, respectively, of
   sales. In most other areas of the world, Registrant has appointed licensees
   who market watches under Registrant’s trademarks in return for a
   royalty. For additional information concerning Registrant’s sales in
   foreign markets, see Note 6 of the Notes to Consolidated Financial
   Statements included in Item 8 of this Form 10-K. </P>
 <P>     Registrant buys complete watches and clocks
   from foreign suppliers for substantially all of its products. Watch
   movements, cases and other components are also purchased from foreign
   suppliers. In the United States, most of Registrant’s consumer products
   are sold through major department stores, jewelry store chains, and premium
   outlets through Registrant’s commission sales force and outside sales
   representatives. In Canada, Registrant, through a marketing subsidiary,
   sells directly to retailers. The customer base is comprised of large
   retailers, small local chains and local independent jewelry shops. In 1999,
   1998 and 1997, one customer represented approximately 13%, 13% and 11%,
   respectively, of sales. No other customer represented more than 10% of the
   Company’s sales. </P>
 <P>     The business is intensely competitive. The
   principal methods of competition are price, styling, product availability,
   aftersale service, warranty and product performance. In all six categories,
   Registrant occupies a favorable position of long standing. There are
   approximately ten major competitors with well established names and
   positions in the principal markets in which Registrant competes. At least
   three of these have sales and assets substantially greater than the
   Registrant. In addition, there are an indeterminate number of minor
   competitors. </P>
 <P>     It is characteristic of Registrant’s
   business and of the watch industry generally that customer receivables from
   watch sales are carried for relatively long periods. Registrant grants its
   retailers seasonal credit terms, depending on the product and date of sale.
   In certain circumstances, Registrant also extends credit to its retailers on
   an interest-bearing basis. </P>
 <P>     Any backlog of orders is not believed to be
   significant. The business is seasonal; with the greatest sales coming in the
   third and fourth quarters in anticipation of the holiday selling season. </P>

 <A NAME="A028"></A>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>Employees</FONT></H1>
 <P>     Registrant currently employs approximately
   450 persons, approximately 150 of whom are union members, and has
   experienced satisfactory labor relations. The Company has comprehensive
   benefit plans for substantially all employees.  </P>
 <P> </P>
 <P ALIGN="center">3</P>
 <P></P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>
 <A NAME="#847tx2"></A>
 Item 2. Properties.</FONT></H2>
 <P>     The Company owns an 80,000 square foot plant
   in Woodside, New York used for executive and sales offices, watch
   distribution, service and warehouse purposes and also owns a 91,000 square
   foot plant in Brooklyn, New York, for clock service and warehouse purposes.
   In addition, the Company leases a 25,000 square foot plant in Toronto,
   Canada, for watch and clock sales and service. </P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>
 <A NAME="#847tx3"></A>
 Item 3. Legal Proceedings.</FONT></H2>
 <P>     Pending litigation includes various civil
   actions for damages. On the basis of the facts presently known to it,
   management does not believe that these actions will have a material adverse
   effect upon the financial condition or results of operations of the Company.
   </P>
 <P><B>
 <A NAME="#847tx4"></A>
 Item 4. Submission of Matters to a Vote of Security Holders. </B></P>
 <P>     None. </P>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>PART II</FONT></H1>
 <B>
 <A NAME="#847tx5"></A>
 Item 5. Market for the Registrant’s Common Stock and Related Stockholder
   Matters.
 <A NAME="A032"></A>
 </B> <H2 ALIGN=LEFT><FONT
 SIZE=3>MARKET PRICES</FONT></H2>
 <P>     The following table sets forth, for the
   periods indicated, the high and low bid prices for the Company’s Common
   Stock in the over-the-counter market as reported by Carr Securities Corp.
   These quotations represent prices between dealers and do not include retail
   mark-up, mark-down or commissions. They do not represent actual
   transactions. </P>

 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600" ALIGN="center">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="44%"></TD>
   <TD COLSPAN=4 WIDTH="10%"> <DIV ALIGN="center"><B>1999</B></DIV>
   </TD>
   <TD COLSPAN=4 WIDTH="10%"> <DIV ALIGN="center">1998</DIV>
   </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TH WIDTH="44%"></TH>
   <TH COLSPAN=8 WIDTH="10%"> <HR NOSHADE SIZE=1> </TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="44%"></TD>
   <TD COLSPAN="2" WIDTH="10%"> <DIV ALIGN="center"><B>High</B></DIV>
   </TD>
   <TD COLSPAN="2"> <DIV ALIGN="center"><B>Low</B></DIV>
   </TD>
   <TD COLSPAN="2" WIDTH="10%"> <DIV ALIGN="center">High</DIV>
   </TD>
   <TD WIDTH="10%"> <DIV ALIGN="center">Low</DIV>
   </TD>
   <TD WIDTH="4%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="44%" ALIGN="LEFT" COLSPAN="9"> <HR SIZE=1 NOSHADE> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="44%" ALIGN="LEFT">First Quarter</TD>
   <TD WIDTH="10%" ALIGN="RIGHT"><B>$19.00</B></TD>
   <TD WIDTH="4%" ALIGN="RIGHT"><B></B></TD>
   <TD WIDTH="10%" ALIGN="RIGHT"><B>$18.13</B></TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT">$16.25</TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT">$15.63</TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="44%">Second Quarter</TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>19.50</B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>18.50</B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">17.50</TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">16.25</TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="44%">Third Quarter</TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>20.00</B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>19.50</B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">23.25</TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">18.00</TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="44%">Fourth Quarter</TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>20.00</B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>19.50</B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">18.13</TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">16.63</TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
  </TR>
 </TABLE>
 <H2 ALIGN=LEFT> </H2>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>DIVIDEND INFORMATION</FONT></H2>
 <P>     The Company paid no dividends for the years
   ended December 31, 1999 and 1998. </P>
 <H2 ALIGN=LEFT> </H2>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>APPROXIMATE NUMBER OF EQUITY SECURITY HOLDERS</FONT></H2>
 <P>     There were approximately 1,380 holders of
   record of common stock of the Company at February 25, 2000.  </P>
 <P> </P>
 <P ALIGN="center">4</P>
 <P></P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>
 <A NAME="#847tx6"></A>
 Item 6. Selected Financial Data.</FONT></H2>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" ALIGN="center">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="29%"> <DIV ALIGN="left">Year Ended December 31</DIV>
   </TD>
   <TD WIDTH="11%"> <DIV ALIGN="right"><B>1999</B> </DIV>
   </TD>
   <TD WIDTH="4%"> </TD>
   <TD WIDTH="11%"> <DIV ALIGN="right">1998 </DIV>
   </TD>
   <TD WIDTH="4%"> </TD>
   <TD WIDTH="11%"> <DIV ALIGN="right"> 1997 </DIV>
   </TD>
   <TD WIDTH="4%"> </TD>
   <TD WIDTH="11%"> <DIV ALIGN="right">1996 </DIV>
   </TD>
   <TD WIDTH="4%"> </TD>
   <TD WIDTH="11%"> <DIV ALIGN="right"> 1995 </DIV>
   </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" COLSPAN="10" WIDTH="29%"> <HR NOSHADE ALIGN="right"
     WIDTH="100%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="29%" ALIGN="LEFT">(In thousands, except per share data)</TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="29%" ALIGN="LEFT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="29%" ALIGN="LEFT">Results of Operations:</TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="4%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">  Net sales</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>$134,013</B> </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">$129,157 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">$123,443 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">$115,113 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">$100,449 </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%" NOWRAP>  Income from continuing
     operations</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>14,620 </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">10,920 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">10,016 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">7,001 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">2,269 </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">  Per share</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>3.18 </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">2.37 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">2.18 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">1.52 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">.49 </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">  Net income</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>14,620 </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">10,920 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">10,016 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">7,001 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">2,632 </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">  Per share</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>3.18 </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">2.37 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">2.18 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">1.52 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">.57 </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">Financial Position:</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">  Total assets</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>178,793 </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">164,452 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">155,550 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">148,454 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">134,127 </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">  Shareholders’ equity</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>106,749 </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">91,831 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">81,943 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">72,381 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">65,463 </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%">  Dividends per share</TD>
   <TD ALIGN="RIGHT" WIDTH="11%"><B>None </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">None </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">None </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">None </TD>
   <TD ALIGN="RIGHT" WIDTH="4%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%">None </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="29%" HEIGHT="6" VALIGN="TOP" NOWRAP> 
      Shares of common stock outstanding</TD>
   <TD ALIGN="RIGHT" WIDTH="11%" HEIGHT="6"><B>4,599 </B></TD>
   <TD ALIGN="RIGHT" WIDTH="4%" HEIGHT="6"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%" HEIGHT="6">4,599 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%" HEIGHT="6"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%" HEIGHT="6">4,599 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%" HEIGHT="6"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%" HEIGHT="6">4,599 </TD>
   <TD ALIGN="RIGHT" WIDTH="4%" HEIGHT="6"> </TD>
   <TD ALIGN="RIGHT" WIDTH="11%" HEIGHT="6">4,599 </TD>
  </TR>
 </TABLE>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>
 <BR>

 <A NAME="#847tx7"></A>
 Item 7. Management’s Discussion and Analysis of Financial Condition and
   Results of Operations.</FONT></H2>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>RESULTS OF OPERATIONS</FONT></H2>
 <H2 ALIGN=LEFT><FONT
 SIZE=3><I>1999 Compared with 1998</I></FONT></H2>
 <P ALIGN=left>Net sales and income before income taxes increased $4,856,000
   and $2,158,000, as compared to 1998, respectively. </P>
 <P ALIGN=left>The increase in net sales is primarily attributable to the unit
   volume increase of the Company’s Caravelle and Accutron watch brands of
   19.9% and 6.9%, respectively, as compared to 1998. This resulted in a
   combined increase in net sales of $5,391,000, as compared to 1998.
   Additionally there was an increase in net sales in the Companys clock brand
   of $1,414,000, as compared to 1998 primarily attributable to a unit volume
   increase of 1.4%. The above is partially offset by a decline in the Company
   ’s Bulova watch brand of $1,512,000, primarily attributable to a change
   in style sales mix which resulted in reduction in the Bulova watch brand
   ’s average selling price.</P>
 <P ALIGN=left>Gross profit as a percentage of net sales for the year ended
   December 31, 1999 was 50.8% as compared to 49.0% for the year ended December
   31, 1998. This increase is attributable to the Company’s efforts to
   maintain efficient operational and procurement practices as well as a credit
   of $720,000 to the cost of sales related to an actuarial revaluation of its
   net periodic postretirement benefit expense, as compared to a credit of
   $338,000 for the year ended December 31, 1998.</P>
 <P ALIGN=left>Royalty income was essentially unchanged from that of the prior
   year. Royalty income represents payments by licensees in Europe and the Far
   East, and a distributor in South America.</P>
 <P ALIGN=left>The Europe and Far East license agreements expire on December
   31, 2001. These licensees are based in Hong Kong. The Company’s South
   American distributor is based in the United States and the agreement expires
   on December 31, 2000.</P>
 <P ALIGN=left>Economic conditions in the Far East may result in a future
   decrease in royalty income. The Company cannot predict the outcome of future
   negotiations with respect to its license agreements and this may negatively
   impact revenues, gross profit, and results of operations and cash flows.</P>
 <P ALIGN=left> Interest income decreased by $380,000 or 19.3%, as compared to
   1998, due primarily to a lower level of invested assets. </P>
 <P ALIGN=left>Selling, general and administrative expenses as a percentage of
   net sales for the year ended December 31, 1999 was 38.8% as compared to
   39.1% for the year ended December 31, 1998. The primary reason for the
   decrease was a credit of $1,337,000 in 1999 as compared to a credit of
   $629,000 in 1998. It was related to an actuarial revaluation of the Company
   ’s net periodic postretirement benefit expense. </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>5</P>
 <P ALIGN=left></P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3><I>1998 Compared with 1997</I></FONT></H2>
 <P ALIGN=left> Net sales and income before income taxes increased $5,714,000
   and $3,319,000, as compared to 1997, respectively. </P>
 <P ALIGN=left>The increase in net sales is primarily attributable to the unit
   growth of the Company’s Bulova and Caravelle watch brands of 12.7% and
   3.7%, respectively, as compared to 1997. The unit growth, attributable to
   Bulova and Caravelle, resulted in a combined increased net sales of
   $9,407,000 or 10.0%, as compared to 1997. This increase was partially offset
   by a combined sales decline in the Sportstime licensed product line and the
   clock product line of $2,075,000. </P>
 <P ALIGN=left>Gross profit as a percentage of net sales for the year ended
   December 31, 1998 was 49.0%, as compared to 46.3% for the year ended
   December 31, 1997. The increase in gross profit is attributable to a
   favorable product sales mix and a credit of $338,000 to cost of sales
   related to an actuarial revaluation of its net periodic postretirement
   benefit expense. </P>
 <P ALIGN=left>Royalty income was essentially unchanged from that of the prior
   year. Interest income increased by $576,000 or 43.6%, as compared to 1997.
   This increase is the result of the increased level of invested assets during
   1998. </P>
 <P ALIGN=left>Selling, general and administrative expenses as a percentage of
   net sales for the year ended December 31, 1998 was 39.1% as compared to
   38.3% for the year ended December 31, 1997. The primary reason for the
   increase in 1998 was the result of the Company’s significant increase
   in brand support advertising. This increase was partially offset by a credit
   of $629,000 recorded in selling, general and administrative expenses related
   to an actuarial revaluation of its net periodic postretirement benefit
   expense.</P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3><I>Foreign Currency</I></FONT></H2>
 <P ALIGN=left>The Company imports most of its watch and clock products. In
   1999, approximately 11% of the Company’s purchases were denominated in
   Japanese yen. The remaining purchases are primarily denominated in U.S.
   dollars for product acquired from vendors located in Europe, Hong Kong and
   other Asian countries. The Hong Kong dollar is pegged to the U.S. dollar and
   has not been subject to the fluctuations that have affected other Asian
   currencies. </P>
 <P ALIGN=left>In the event that the peg between the two currencies is removed,
   currency fluctuations could have a material impact on the cost of those
   imported products which ultimately could have a negative impact on the
   Company’s gross profit, operating income and cash flow. Foreign
   currency fluctuations have not had a material impact on the results of
   operations for the years ended December 31, 1999, 1998 and 1997. Future
   foreign currency fluctuations, however, could impact gross profit, income
   and cash flow.</P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>LIQUIDITY AND CAPITAL RESOURCES</FONT></H2>
 <P ALIGN=left><B><I>Cash Flow </I></B></P>
 <P ALIGN=left>The Company generated (utilized) net cash flow from operations
   of $8,606,000 and $(509,000) for the years ended December 31, 1999 and 1998,
   respectively. The increase in net cash flow is primarily the result of an
   increase in net income, a decrease in the level of inventory and a change in
   the timing of payments related to income taxes.</P>
 <P ALIGN=left>Prior to 1995, the Company received assistance from Loews. Since
   January 1995, the Company has not required any working capital advances from
   Loews and expects that existing cash balances and cash flow from operations
   will be sufficient to fund anticipated working capital requirements.</P>
 <P ALIGN=left>The Company’s investments consist primarily of U.S.
   Treasury notes. Cash and cash equivalents, and investments amounted to
   $34,091,000 at December 31, 1999 as compared to $25,684,000 at December 31,
   1998.</P>
 <P ALIGN=left>The Company has invested in property, plant and equipment in an
   effort to improve warehouse operational efficiency. Capital expenditures
   related to this project are estimated to be approximately $2,000,000.
   Approximately $196,000 was incurred during the year ended December 31, 1999,
   and approximately $1,254,000 has been incurred since the inception of the
   project, which commenced in the first quarter of 1997. This project will be
   funded through the Company’s working capital. Additionally, during the
   fourth quarter of 1998, the Company purchased a building for its clock
   warehousing and distribution requirements to replace a leased facility. The
   cost of the building was approximately $4,000,000. Renovation costs incurred
   during 1999 were approximately $520,000. These costs were funded through the
   Company’s working capital.  </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>6 </P>
 <P></P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>YEAR 2000 ISSUE</FONT></H2>
 <P ALIGN=left>The Company estimates that the total amount spent on Year 2000
   readiness matters approximated $350,000. Prior to 1997, the Company did not
   specifically separate technology charges for Year 2000 from other
   information technology charges. In addition, while some hardware charges are
   included in the above figure, the Company’s hardware costs typically
   are included as part of ongoing technology updates and not specifically as
   part of the Year 2000 project. All funds spent have been financed from
   current operating funds.</P>
 <P ALIGN=left>The Company believes that it has successfully resolved the Year
   2000 issue without any material impact on its results of operations or
   equity. </P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></H2>
 <FONT
 SIZE=3>The Company’s financial instruments consist primarily of U.S.
   government securities. The Company has exposure to economic losses due to
   interest rate risk arising from changes in the level of volatility of
   interest rates. The Company mitigates its exposure to interest rate risk by
   maintaining investments with short-term maturities. As such, the Company
   does not believe these financial instruments present a significant exposure
   to market risk. </FONT> <H2 ALIGN=LEFT><FONT
 SIZE=3>FORWARD-LOOKING STATEMENTS</FONT></H2>
 <P ALIGN=left>When included in this Report, the words “believes,”
    “expects,” “intends,” “anticipates,
   ” “estimates” and analogous expressions are intended to
   identify forward-looking statements. Such statements inherently are subject
   to a variety of risks and uncertainties that could cause actual results to
   differ materially from those projected. Such risks and uncertainties
   include, among others, general economic and business conditions, changes in
   financial markets, significant changes in consumer spending patterns,
   competition in the Company’s product areas, changes in foreign currency
   valuations in relation to the U.S. dollar, changes in foreign, political,
   social and economic conditions, and various other matters, many of which are
   beyond the Company’s control. These forward-looking statements speak
   only as of the date of this report. The Company expressly disclaims any
   obligation or undertaking to release publicly any updates or revisions to
   any forward-looking statement contained herein to reflect any change in the
   Company’s expectations with regard thereto or any change in events,
   conditions or circumstances on which any statement is based.</P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>
 <A NAME="#847tx8"></A>
 Item 7A. Quantitative and Qualitative Disclosures About Market
   Risk.</FONT></H2>
 <P ALIGN=left>See Management’s Discussion and Analysis of Financial
   Condition and Results of Operations for information regarding Quantitative
   and Qualitative Disclosures about Market Risk.</P>
 <P ALIGN=left> </P>
 <P ALIGN=center>7</P>
 <P ALIGN=left></P>
 <H1 ALIGN=CENTER><FONT
 SIZE=3>INDEPENDENT AUDITORS’ REPORT</FONT></H1>
 <P ALIGN=left>The Board of Directors and
 <BR>
 Shareholders of Bulova Corporation:</P>
 <P>     We have audited the accompanying consolidated
   balance sheets of Bulova Corporation and its subsidiaries (“the
   Corporation”) as of December 31, 1999 and 1998, and the related
   consolidated statements of income, shareholders’ equity and cash flows
   for each of the three years in the period ended December 31, 1999. Our
   audits also included the financial statement schedule listed in the index at
   Item 14(a)2. These financial statements and financial statement schedule are
   the responsibility of the Corporation’s management. Our responsibility
   is to express an opinion on the financial statements and financial statement
   schedule based on our audits. </P>
 <P>     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. </P>
 <P>     In our opinion, such consolidated financial
   statements present fairly, in all material respects, the financial position
   of Bulova Corporation and its subsidiaries at December 31, 1999 and 1998,
   and the results of their operations and their cash flows for each of the
   three years in the period ended December 31, 1999 in conformity with
   generally accepted accounting principles. Also, in our opinion, such
   financial statement schedule, when considered in relation to the basic
   consolidated financial statements taken as a whole, presents fairly in all
   material respects the information set forth therein. </P>
 <P> </P>
 <P> </P>
 <P> </P>
 <P> </P>
 <P ALIGN=left> Deloitte & Touche LLP
 <BR>
 New York, New York
 <BR>
 February 24, 2000 </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>8</P>
 <P ALIGN=left></P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>
 <A NAME="#847tx9"></A>
 Item 8. Financial Statements and Supplementary Data.</FONT></H2>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>CONSOLIDATED BALANCE SHEETS</FONT></H2>

 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" ALIGN="center">
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" COLSPAN="6"> <HR SIZE=1 NOSHADE> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="77%" ALIGN="LEFT">Assets:</TD>
   <TD WIDTH="2%" ALIGN="LEFT"> </TD>
   <TD WIDTH="8%" ALIGN="RIGHT"></TD>
   <TD WIDTH="3%" ALIGN="LEFT"> </TD>
   <TD WIDTH="8%" ALIGN="RIGHT"></TD>
   <TD WIDTH="2%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" COLSPAN="6"> <HR SIZE=1 NOSHADE> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"> </TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">December 31</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>1999</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">1998</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">(Amounts in thousands of dollars)</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Current assets:</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">         Cash
     and cash equivalents (Note 1)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>$  22,027</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">$    5,720</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Investments (Note 1)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>12,064</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">19,964</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Receivables, less allowance for doubtful accounts and cash discounts
     of</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        $4,171 and $3,839 (Note 1)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>63,371</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">56,213</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Inventories (Note 1)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>36,787</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">38,937</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Prepaid expenses (Note 4)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>913</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">1,502</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">         Prepaid
     income taxes (Note 3)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">1,057</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Deferred income taxes (Notes 1 and 3)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>11,289</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">9,416</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Total current assets</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>146,451</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">132,809</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> <P ALIGN=left>Property, plant and equipment, at cost (Note
     1):</P>
   </TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">         Land,
     buildings and improvements</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>18,538</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">18,040</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Machinery and equipment</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>2,897</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">2,759</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Furniture, fixtures and leasehold improvements</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>4,254</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">4,381</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>25,689</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">25,180</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">         Less
     accumulated depreciation and amortization</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>10,503</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">9,973</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Property, plant and equipment-net</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>15,186</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">15,207</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Other assets:</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Deferred income taxes (Notes 1 and 3)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>16,981</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">16,220</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">         Other
     assets</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>175</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">216</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Total other assets</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>17,156</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">16,436</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Total assets</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>$178,793</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">$164,452</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
  </TR>
 </TABLE>
 <P ALIGN="left"><FONT
 SIZE=3><I>See Notes to Consolidated Financial Statements.</I></FONT> </P>
 <P ALIGN="left"> </P>
 <P ALIGN="center">9 </P>
 <P></P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" ALIGN="center">
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" COLSPAN=6> <HR SIZE=1 NOSHADE> </TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" COLSPAN=6 HEIGHT="23">Liabilities and Shareholders’
     Equity:</TD>
   <TD ALIGN="LEFT" HEIGHT="23"> </TD>
  </TR>
  <TR VALIGN="top">
   <TD ALIGN="LEFT" COLSPAN=6> <HR SIZE=1 NOSHADE> </TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="25"> </TD>
   <TD ALIGN="LEFT" HEIGHT="25"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="25"> </TD>
   <TD ALIGN="LEFT" HEIGHT="25"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="25"> </TD>
   <TD ALIGN="LEFT" HEIGHT="25"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> <P>December 31</P>
   </TD>
   <TD ALIGN="LEFT" HEIGHT="25"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="25"><B>1999</B></TD>
   <TD ALIGN="LEFT" HEIGHT="25"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="25">1998</TD>
   <TD ALIGN="LEFT" HEIGHT="25"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">(Amounts in thousands of dollars)</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Current liabilities:</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Accounts payable</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>$   3,887</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">$    3,579</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Accrued expenses:</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        Salaries, wages and commissions</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>3,304</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">3,248</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        Pension (Note 4)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>1,173</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">197</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        Postretirement benefits (Note 4)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>1,023</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">972</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        Advertising and promotions (Note 1)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>6,305</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">4,435</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        Warranty (Note 1)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>1,024</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">1,017</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        Federal income taxes (Note 3)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>1,051</B></TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">          
        Other</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>11,251</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">11,660</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Total current liabilities</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>29,018</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">25,108</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Other liabilities and credits:</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Postretirement benefits payable (Note 4)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>36,364</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">39,495</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Pension benefits payable (Note 4)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>2,029</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">3,590</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">         Other
     (Note 8)</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>4,633</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">4,428</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Total other liabilities and credits</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>43,026</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">47,513</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
 </TABLE>
 <P ALIGN=left>Commitments and contingent liabilities (Notes 2, 3, 4, 7 and
   8)</P>

 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" ALIGN="center">
  <TR VALIGN="BOTTOM">
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="71%" ALIGN="LEFT">Shareholders’ equity (Note 1):</TD>
   <TD WIDTH="3%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT"></TD>
   <TD WIDTH="4%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT"></TD>
   <TD WIDTH="2%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">     Common stock, $5 par
     value:</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Authorized: 7,500,000 shares</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">        
      Issued: 4,600,000 shares</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>22,999</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">22,999</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">     Additional paid-in
     capital</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>23,197</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">23,197</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">     Retained earnings</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>63,334</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">48,714</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">     Accumulated other
     comprehensive loss</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>(2,776</B></TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">(3,074</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>106,754</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">91,836</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">     Less 1,000 shares of common
     stock held in treasury, at cost</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>5</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">5</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Total shareholders’ equity</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>106,749</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">91,831</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Total liabilities and shareholders’ equity</TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"><B>$ 178,793</B></TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT">$ 164,452</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
  </TR>
 </TABLE>
 <P> </P>
 <P ALIGN="center">10</P>
 <P></P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>CONSOLIDATED STATEMENTS OF INCOME</FONT></H2>

 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TH COLSPAN="2" WIDTH="55%"></TH>
   <TH COLSPAN="2" WIDTH="10%"><B></B></TH>
   <TH COLSPAN="2" WIDTH="10%"></TH>
   <TH COLSPAN="2" WIDTH="10%"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Year Ended December 31</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>1999</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">1998</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">1997</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="55%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">(Amounts in thousands, except per share
     data)</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Net sales</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>$ 134,013</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$129,157</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$123,443</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Cost of sales</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>65,930</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">65,845</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">66,323</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="55%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Gross profit</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>68,083</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">63,312</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">57,120</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Selling, general and administrative
     expenses</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>51,939</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">50,465</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">47,246</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="55%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Operating income</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>16,144</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">12,847</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">9,874</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Royalty</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>3,574</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">3,581</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">3,606</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Interest-net</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>1,584</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">1,896</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">1,320</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Other</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>(534</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="LEFT">)</DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">286</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">491</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="55%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Income before income taxes</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>20,768</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">18,610</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">15,291</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%"> </TD>
   <TD ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Income taxes (Notes 1 and 3)</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>6,148</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">7,690</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">5,275</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="55%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Net income</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>$  14,620</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$ 10,920</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$  10,016</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="55%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">Net income per share (Note 1)</TD>
   <TD ALIGN="LEFT"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT"><B>   $     
      3.18</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$     2.37</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> <DIV ALIGN="RIGHT"></DIV>
   </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$      2.18</TD>
   <TD ALIGN="LEFT" WIDTH="5%">  </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="55%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
  </TR>
 </TABLE>
 <P ALIGN=left><I>See Notes to Consolidated Financial Statements.</I> </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>11 </P>
 <P>  </P>
 <H2 ALIGN=center><FONT
 SIZE=3>CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY</FONT></H2>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="966">
  <TR VALIGN="BOTTOM">
   <TH ALIGN="LEFT" WIDTH="24%" HEIGHT="10"> </TH>
   <TH ALIGN="LEFT" WIDTH="3%" HEIGHT="10"> </TH>
   <TH ALIGN="RIGHT" WIDTH="6%" HEIGHT="10"> <DIV ALIGN="center"><FONT
   SIZE="2">Comprehensive
   <BR>
   Income</FONT></DIV>
   </TH>
   <TH ALIGN="LEFT" WIDTH="3%" HEIGHT="10"><FONT
   SIZE="2"></FONT></TH>
   <TH ALIGN="RIGHT" WIDTH="6%" HEIGHT="10"> <DIV ALIGN="center"><FONT
   SIZE="2">Common
   <BR>
   Stock</FONT></DIV>
   </TH>
   <TH ALIGN="LEFT" WIDTH="3%" HEIGHT="10"><FONT
   SIZE="2"></FONT></TH>
   <TH ALIGN="RIGHT" WIDTH="6%" HEIGHT="10"> <DIV ALIGN="center"><FONT
   SIZE="2">Additional
   <BR>
   Paid-in
   <BR>
   Capital</FONT></DIV>
   </TH>
   <TH ALIGN="LEFT" WIDTH="3%" HEIGHT="10"><FONT
   SIZE="2"></FONT></TH>
   <TH ALIGN="RIGHT" WIDTH="6%" HEIGHT="10"> <DIV ALIGN="center"><FONT
   SIZE="2">Retained
   <BR>
   Earnings</FONT></DIV>
   </TH>
   <TH ALIGN="LEFT" WIDTH="3%" HEIGHT="10"><FONT
   SIZE="2"></FONT></TH>
   <TH ALIGN="RIGHT" WIDTH="6%" HEIGHT="10"> <DIV ALIGN="center"><FONT
   SIZE="2">Accumulated
   <BR>
   Other
   <BR>
   Comprehensive
   <BR>
   Income
   <BR>
   (Loss)</FONT></DIV>
   </TH>
   <TH ALIGN="LEFT" WIDTH="3%" HEIGHT="10"><FONT
   SIZE="2"></FONT></TH>
   <TH ALIGN="RIGHT" WIDTH="6%" HEIGHT="10"> <DIV ALIGN="center"><FONT
   SIZE="2">Treasury
   <BR>
   Stock</FONT></DIV>
   </TH>
   <TH ALIGN="LEFT" WIDTH="3%" HEIGHT="10"><FONT
   SIZE="2"></FONT></TH>
   <TH ALIGN="RIGHT" WIDTH="6%" HEIGHT="10"> <DIV ALIGN="center"><FONT
   SIZE="2">Total</FONT></DIV>
   </TH>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" COLSPAN="16" HEIGHT="19" WIDTH="24%"> <HR NOSHADE
     WIDTH="100%" SIZE="2"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">(Amounts in thousands)</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Balance, December 31, 1996</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$22,999</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$23,197</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$27,778</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$(1,588</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$(5</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$ 72,381</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Comprehensive income:</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"></TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"></TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"></TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"></TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"></TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"></TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"></TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Net income</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$10,016</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">10,016</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">10,016</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Other comprehensive</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          loss, net of tax benefit:</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Exchange rate changes</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          during the year (net of</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          income tax benefit of $167)</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(310</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(310</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(310</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Pension liability adjustment,</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          net (Note 4)</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(144</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(144</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(144</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Other comprehensive loss</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(454</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Comprehensive income</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$  9,562</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" COLSPAN="12" HEIGHT="10" VALIGN="top"> <HR NOSHADE
     WIDTH="100%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Balance, December 31, 1997</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">22,999</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">23,197</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">37,794</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(2,042</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(5</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">81,943</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Comprehensive income:</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Net income</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$10,920</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">10,920</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">10,920</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="24">        
      Other comprehensive</TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="24"> </TD>
   <TD ALIGN="LEFT" HEIGHT="24"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          loss, net of tax benefit:</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Exchange rate changes</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          during the year (net of</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          income tax benefit of $213)</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(396</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(396</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(396</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Pension liability adjustment,</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          net (Note 4)</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(636</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(636</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(636</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Other comprehensive loss</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(1,032</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Comprehensive income</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$ 9,888</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" COLSPAN="12" HEIGHT="10" VALIGN="top"> <HR NOSHADE
     WIDTH="100%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Balance, December 31, 1998</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">22,999</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">23,197</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">48,714</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(3,074</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(5</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">91,831</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Comprehensive income:</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Net income</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$14,620</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">14,620</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">14,620</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Other comprehensive</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          income, net of taxes:</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Exchange rate changes</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          during the year (net of</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          income tax benefit of $95)</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(176</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(176</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">(176</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
      Pension liability adjustment,</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">        
          net (Note 4)</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">474</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">474</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">474</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">       
      Other comprehensive         
          income</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">298</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Comprehensive income</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$14,918</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" COLSPAN="12" HEIGHT="10" VALIGN="top"> <HR NOSHADE
     WIDTH="100%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" HEIGHT="10">Balance, December 31, 1999</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$22,999</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$23,197</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$63,334</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$(2,776</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$(5</TD>
   <TD ALIGN="LEFT" HEIGHT="10">)</TD>
   <TD ALIGN="RIGHT" HEIGHT="10">$106,749</TD>
   <TD ALIGN="LEFT" HEIGHT="10"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"></TD>
   <TD ALIGN="LEFT"></TD>
   <TD ALIGN="RIGHT"></TD>
   <TD ALIGN="LEFT"></TD>
   <TD ALIGN="RIGHT" COLSPAN="12" VALIGN="top"> <HR NOSHADE WIDTH="100%"
     SIZE="2"> </TD>
  </TR>
 </TABLE>
 <P ALIGN=left><I>See Notes to Consolidated Financial Statements.</I> </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>12 </P>
 <P></P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>CONSOLIDATED STATEMENTS OF CASH FLOWS</FONT></H2>

 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="70%" ALIGN="LEFT">Year Ended December 31</TD>
   <TD WIDTH="%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"><B>1999</B></TD>
   <TD WIDTH="3%" ALIGN="LEFT"><B></B></TD>
   <TD WIDTH="7%" ALIGN="RIGHT">1998</TD>
   <TD WIDTH="3%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT">1997</TD>
   <TD WIDTH="3%" ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="70%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">(Amounts in thousands)</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Operating Activities:</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%" HEIGHT="23">Net income</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%" HEIGHT="23"><B>$ 14,620</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%" HEIGHT="23">$   10,920</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%" HEIGHT="23">$ 10,016</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Adjustments to reconcile net income to net cash
     provided</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
      by (used in) operating activities:</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Amortization
     of investments</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>(521</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(1,563</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(868</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Depreciation
     and amortization</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>741</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">727</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">649</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Gain on
     disposition of assets</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(11</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="LEFT" WIDTH="7%"> <DIV ALIGN="right">(15</DIV>
   </TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Provision for
     losses and cash discounts on accounts
   <BR>
               
                 
        receivable</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>2,597</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">2,591</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">2,126</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Deferred
     income taxes</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>(2,634</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">25</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">8</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Changes in operating assets and
     liabilities-net:</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
              
      Receivables</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>(9,755</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(7,427</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">914</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
              
      Inventories</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>2,150</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(3,281</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">1,474</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Prepaid
     expenses</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>589</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">58</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">1,614</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Other
     assets</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>41</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">8</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">615</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Accounts
     payable and accrued expenses</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>2,859</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">2,103</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">1,596</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Accrued
     federal and foreign income taxes</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>2,108</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(538</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(2,182</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">        
               Other-net</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>(4,189</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(4,121</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(2,853</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="70%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>8,606</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(509</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">13,094</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="70%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Investing Activities:</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Purchases of short-term investments</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>(24,579</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(228,416</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(53,462</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Proceeds from sales of short-term
     investments</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>33,000</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">229,952</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">39,371</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Purchases of property, plant and equipment</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>(720</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(4,445</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(563</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Proceeds from disposal of property, plant and
     equipment</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">11</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">22</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="70%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>7,701</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(2,898</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(14,632</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="70%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Net change in cash and cash equivalents</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>16,307</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(3,407</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">(1,538</TD>
   <TD ALIGN="LEFT" WIDTH="3%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Cash and cash equivalents, beginning of
     year</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>5,720</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">9,127</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">10,665</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="70%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="70%">Cash and cash equivalents, end of year</TD>
   <TD ALIGN="LEFT" WIDTH="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>$ 22,027</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">$     5,720</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%">$   9,127</TD>
   <TD ALIGN="LEFT" WIDTH="3%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="70%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
  </TR>
 </TABLE>
 <P><I>See Notes to Consolidated Financial Statements.</I> </P>
 <P> </P>
 <P ALIGN="center">13</P>
 <P></P>
 <P ALIGN="RIGHT"><FONT
 SIZE=3><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B>
 <BR>
 </FONT>(Dollars in thousands, except per share data)</P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>Note 1. Summary of Significant Accounting Policies —</FONT></H2>
 <P ALIGN=left>(a) Business — The Company is engaged in the distribution
   and sale of watches, clocks and timepieces for consumer use. The principal
   watch brands are Bulova, Caravelle, Accutron and Sportstime. Clocks are
   principally sold under the Bulova brand name. Bulova’s principal
   markets are the United States and Canada. Royalties are received from
   licensees principally in Europe and the Far East and a distributor in South
   America. Loews Corporation (“Loews”) owns approximately 97% of the
   Company’s outstanding voting stock.</P>
 <P ALIGN=left>(b) Principles of Consolidation — The consolidated
   financial statements include all subsidiaries, which are 100% owned, and all
   material intercompany accounts and transactions have been eliminated.</P>
 <P ALIGN=left>(c) Accounting Estimates — The preparation of financial
   statements in conformity with generally accepted accounting principles
   requires management to make estimates and assumptions that affect the
   reported amounts of assets and liabilities and disclosure of contingent
   assets and liabilities at the date of the financial statements and the
   reported amounts of revenues and expenses during the reporting period.
   Actual results could differ from those estimates. </P>
 <P ALIGN=left>(d) Cash and Cash Equivalents — The Company classifies as
   cash equivalents all highly liquid investments with maturities of three
   months or less. At December 31, 1999 and 1998, cash equivalents were
   comprised of investments in money-market accounts.</P>
 <P ALIGN=left>(e) Investments — Investments consist of commercial paper
   and U.S. government securities. These investments are considered available
   for sale and carried at fair value, which approximates cost.</P>
 <P ALIGN=left>(f) Accounts Receivable and Concentration of Credit Risk —
   Watches and clocks are sold to retail outlets throughout the United States
   and Canada. The Company grants its retailers seasonal credit terms. For the
   years ended December 31, 1999 and 1998, accounts receivable were
   substantially comprised of balances due from retailers.</P>
 <P ALIGN=left>Financial instruments which potentially subject the Company to
   concentrations of credit risk consist primarily of trade accounts
   receivable. One U.S. based customer accounted for approximately 13%, 13% and
   11% of sales for the years ended December 31, 1999, 1998 and 1997,
   respectively. Although the Company’s exposure to credit risk associated
   with non-payment by this customer is affected by conditions or occurrences
   within the retail industry, trade receivables from this customer were
   collected within terms; no other customer represented more than 10% of the
   Company’s sales. The carrying amount of receivables approximates fair
   value.</P>
 <P ALIGN=left>(g) Inventories — Substantially all inventory, consisting
   primarily of finished watches and clocks, is computed on a first-in,
   first-out basis and are valued at lower of cost or market.</P>
 <P ALIGN=left>(h) Property, Plant and Equipment — Depreciation is
   calculated on the straight-line method over the estimated useful lives of
   the various classes of assets. Leasehold improvements are, if such period is
   shorter, amortized over the life of the lease. Asset lives range from 2 to
   12 years for machinery, equipment, and furniture and fixtures and from 15 to
   40 years for buildings and improvements.</P>
 <P ALIGN=left>(i) Income Taxes — The Company is included in Loews
   consolidated federal tax return. Under the tax allocation agreement, the
   Company is required to provide a current tax provision calculated on a
   stand-alone basis. The Company provides for deferred income taxes under the
   liability method, whereby deferred income taxes result from temporary
   differences between the tax basis of assets and liabilities and their
   reported amounts in the financial statements. No provision is required for
   undistributed earnings of subsidiaries, since substantially all of these
   earnings may be remitted to the Company with little or no tax becoming
   payable.</P>
 <P ALIGN=left>(j) Earnings Per Share and Shareholders’ Equity —
   Earnings per share has been computed on the basis of the weighted average
   number of shares outstanding during the periods (4,599,000 for each of the
   three years ended December 31, 1999). </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>14</P>
 <P ALIGN=left></P>
 <P ALIGN=left>In addition to its common stock, the Company has authorized
   500,000 shares of preferred stock. </P>
 <P ALIGN=left>(k) Foreign Currency Adjustment — The effect of changes in
   exchange rates in translating foreign currency financial statements is
   accumulated as a separate component of other comprehensive income in the
   statement of shareholders’ equity.</P>
 <P ALIGN=left>(l) Forward Exchange Contracts — In connection with
   purchases of inventory, from time to time, the Company enters into forward
   exchange contracts in order to hedge its exposure to fluctuations in foreign
   currency exchange rates. These agreements generally involve the exchange of
   one currency for a second currency at some future date. Counterparties to
   these agreements are major international financial institutions. As of
   December 31, 1999 and 1998, there were no foreign exchange contracts
   outstanding.</P>
 <P ALIGN=left>(m) Impairment of Long-Lived Assets — The Company reviews
   its long-lived assets for impairment when changes in circumstances indicate
   that the carrying amount of an asset may not be recoverable. Long-lived
   assets and certain intangibles, under certain circumstances, are reported at
   the lower of carrying amount or fair value. Assets to be disposed of by the
   Company are recorded at the lower of carrying amount or fair value less cost
   to sell.</P>
 <P ALIGN=left>(n) Advertising Costs — Advertising costs for point of sale
   and media advertising as well as co-op advertising and promotional
   allowances are expensed as incurred.</P>
 <P ALIGN=left>(o) Warranty Costs — The Company provides, by a current
   charge to income, an amount it estimates will be needed to cover future
   warranty obligations for products sold during the year.</P>
 <P ALIGN=left>(p) Reclassifications — Certain amounts applicable to prior
   periods have been reclassified to conform to the classifications followed in
   1999.</P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>Note 2. Related Parties —</FONT></H2>
 <P ALIGN=left>In 1979, the Company entered into a credit agreement with Loews
   (the “Credit Agreement”) which provides for unsecured loans, from
   time to time, in amounts aggregating up to $50,000 with interest at 10% per
   annum. The Credit Agreement has been periodically extended and currently
   expires June 30, 2001. The Credit Agreement has not been utilized since the
   balance due to Loews was paid in January 1995. </P>
 <P ALIGN=left>Loews has provided administrative services for which the Company
   paid $2,659, $2,075 and $2,064 for the years ended December 31, 1999, 1998
   and 1997, respectively. The cost allocated to the Company is estimated to be
   the incremental cost incurred by Loews in providing these services to the
   Company.</P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>Note 3. Income Taxes —</FONT></H2>
 <P ALIGN=left>The Company and Loews have a tax allocation agreement with
   respect to the filing by Loews of consolidated federal income tax returns,
   which include the Company and its subsidiaries. Under the agreement, the
   Company will (i) be paid by Loews the amount, if any, by which Loews’s
   consolidated federal income tax is reduced by virtue of the inclusion of the
   Company and its subsidiaries in the return, or (ii) pay to Loews an amount,
   if any, equal to federal income tax which would have been payable by the
   Company if the Company and its subsidiaries had filed a separate
   consolidated return. Under this agreement, the Company was required to pay
   Loews approximately $6,278, $4,585 and $2,580 for the years ended December
   31, 1999, 1998, and 1997, respectively. This agreement may be canceled by
   the Company or Loews upon thirty days written notice. </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>15 </P>
 <P ALIGN=left></P>
 <P ALIGN=left>Income before income taxes and income tax expense (benefit)
   consisted of the following: </P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="58%" ALIGN="LEFT" HEIGHT="%">Year Ended December 31</TD>
   <TD WIDTH="3%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT" HEIGHT="%"><B>1999</B></TD>
   <TD WIDTH="3%" ALIGN="LEFT" HEIGHT="%"><B></B></TD>
   <TD WIDTH="10%" ALIGN="RIGHT" HEIGHT="%">1998</TD>
   <TD WIDTH="3%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT">1997</TD>
   <TD WIDTH="3%" ALIGN="LEFT" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="58%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%" NOWRAP>Income before income
     taxes:</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
        Domestic</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>$ 19,082</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">$ 17,140</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$ 14,179</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
        Foreign</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>1,686</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">1,470</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">1,112</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="58%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">Total</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>$ 20,768</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">$ 18,610</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$ 15,291</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="58%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="2">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%" NOWRAP>Income tax expense
     (benefit):</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
        Federal:</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
                
      Current</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>$   6,278</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">$   4,585</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$   2,580</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
                
      Deferred</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>2,926</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">723</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">1,857</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
        State and local:</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
                
      Current</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>1,898</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">1,847</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">2,849</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
                
      Deferred</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>(5,670</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">(126</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="10%">(1,606</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
        Foreign:</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
                
      Current</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>956</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">840</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">(402</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%">      
                
      Deferred</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>(240</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">(179</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="10%">(3</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="58%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="58%" HEIGHT="%" NOWRAP>Income tax expense</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>$   6,148</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">$   7,690</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$   5,275</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="58%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="2">
     </TD>
  </TR>
 </TABLE>
 <P ALIGN=left>Deferred tax assets are as follows:</P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="71%" ALIGN="LEFT" HEIGHT="%">December 31</TD>
   <TD WIDTH="3%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT" HEIGHT="%"><B>1999</B></TD>
   <TD WIDTH="3%" ALIGN="LEFT" HEIGHT="%"><B></B></TD>
   <TD WIDTH="10%" ALIGN="RIGHT" HEIGHT="%">1998</TD>
   <TD WIDTH="3%" ALIGN="LEFT" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6" WIDTH="71%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="%" NOWRAP>Employee benefits</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>$ 19,100</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">$21,369</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="%">Inventory</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>5,512</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">5,781</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="%">Accrued expenses</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>1,974</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">2,933</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="%">Accounts receivable</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>1,684</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">1,569</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6" WIDTH="71%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="23"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="23"><B>28,270</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="23">31,652</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="23" NOWRAP>Valuation allowance</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="23"> </TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="23">(6,016</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="23">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="6" WIDTH="71%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="71%" HEIGHT="%" NOWRAP>Deferred tax assets-net</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%"><B>$ 28,270</B></TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="%">$25,636</TD>
   <TD ALIGN="LEFT" WIDTH="3%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="6" WIDTH="71%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="2">
     </TD>
  </TR>
 </TABLE>
 <P ALIGN=left>The valuation allowance related to state and local temporary
   differences.  </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>16</P>
 <P ALIGN=left> </P>
 <P>Income taxes differ from that computed at the U.S. statutory rate for the
   following reasons:</P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%">Year Ended December 31</TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="0%" ALIGN="RIGHT" HEIGHT="%"> <DIV
     ALIGN="right"><B>1999</B><B></B></DIV>
   </TD>
   <TD WIDTH="0%" ALIGN="RIGHT" HEIGHT="%"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD WIDTH="0%" ALIGN="RIGHT" HEIGHT="%"> <DIV ALIGN="right">1998</DIV>
   </TD>
   <TD WIDTH="0%" ALIGN="RIGHT" HEIGHT="%"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD WIDTH="0%" ALIGN="RIGHT" HEIGHT="%"> <DIV ALIGN="right">1997</DIV>
   </TD>
   <TD WIDTH="0%" ALIGN="RIGHT" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Income taxes computed at statutory
     rate</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>35.0</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>%</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">35.0</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">%</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">35.0</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">%</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Increase (decrease) in taxes resulting
     from:</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">      
        State and local taxes</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>7.0</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">6.0</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">5.3</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">      
        Foreign taxes</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>.6</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">.8</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(5.2</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">      
        Valuation allowance and settlement of prior years
     tax</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(13.0</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">      
        Other</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(.5</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD> <DIV ALIGN="RIGHT">(.6</DIV>
   </TD>
   <TD>)</TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Effective income tax rate</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>29.6</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>%</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">41.3</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">%</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">34.5</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">%</TD>
  </TR>
  <TR>
   <TD COLSPAN="8" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="2">
     </TD>
  </TR>
 </TABLE>
 <P ALIGN=left>Federal, foreign, state and local income tax payments amounted
   to approximately $4,225, $8,484 and $7,229 for the years ended December 31,
   1999, 1998 and 1997, respectively.</P>
 <P ALIGN=left>Federal income tax returns have been examined and settled
   through 1994. The years 1995 through 1997 are currently under examination.
   The Company’s Canadian tax returns have been examined and settled
   through 1996. There was a tax benefit of $794, for the year ended December
   31, 1997, which was related to a 1992 settlement. </P>
 <P ALIGN=left>While tax liabilities for subsequent years are subject to audit
   and final determination, in the opinion of management the amount accrued in
   the consolidated balance sheet is believed to be adequate to cover any
   additional assessments which may be made by federal, foreign, state and
   local tax authorities and should not have a material effect on the financial
   condition or results of operations of the Company.</P>
 <H2 ALIGN=LEFT><FONT
 SIZE=3>Note 4. Benefit Plans —</FONT></H2>
 <P ALIGN=left>Pension Plans — The Company maintains non-contributory
   pension plans for all of its employees in the United States. Separate
   retirement plans are maintained by the Company’s Canadian subsidiary,
   which are not material. The Company’s funding policy is to make
   contributions in accordance with applicable governmental requirements. The
   assets of the plans are invested primarily in interest-bearing obligations.
   Benefits are determined based on compensation during each year of credited
   service.</P>
 <P ALIGN=left>At December 31, 1999, 1998 and 1997, the Company’s minimum
   pension liability exceeded its unrecognized prior service cost and net
   transition obligation by $1,226, $1,982 and $1,195, respectively. This
   excess is recorded as a reduction to shareholders’ equity of $643,
   $1,117 and $481, net of tax benefits of $346, $602 and $421 and intangible
   assets of $236, $264 and $293 for the years ended December 31, 1999, 1998
   and 1997, respectively.</P>
 <P ALIGN=left>Other Postretirement Benefit Plans — The Company maintains
   postretirement health care plans covering eligible employees and retirees.
   Union participants generally become eligible upon retirement at age 55 and
   10 years of service or upon completion of 20 years of service. Another plan
   covers salaried employees who are eligible upon retirement at age 55 and 20
   years of service or upon retirement at age 60 and 10 years of service. The
   benefits provided by the Company are basically health, and for certain
   retirees, life insurance type benefits. </P>
 <P ALIGN=left> </P>
 <P ALIGN=center>17</P>
 <P ALIGN=left></P>
 <P ALIGN=left>Components of net periodic benefit costs are as follows: </P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%">      
                 
                 
                 
        </TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="%" ALIGN="RIGHT" COLSPAN="5" HEIGHT="%"> <DIV
     ALIGN="CENTER">Pension Benefits</DIV>
   </TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="%" ALIGN="RIGHT" COLSPAN="6" HEIGHT="%"> <DIV
     ALIGN="CENTER">Other Postretirement Benefits</DIV>
   </TD>
  </TR>
  <TR VALIGN="top">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="10"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" WIDTH="0%" HEIGHT="10" COLSPAN="5"> <HR NOSHADE
     COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="RIGHT" WIDTH="0%" HEIGHT="10"> </TD>
   <TD ALIGN="RIGHT" WIDTH="0%" HEIGHT="10" COLSPAN="6"> <HR NOSHADE
     COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Year Ended December 31</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>1999</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1998</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1997</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>1999</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1998</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1997</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="14" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Service cost-benefits earned</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>$   
      808</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$    730</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$    655</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>$     
      99</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$    108</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$    103</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Interest cost</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>2,024</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1,919</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1,849</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>625</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1,081</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1,510</TD>
   <TD ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Expected return on plan assets</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(1,577</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(1,563</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(1,623</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Amortization of unrecognized</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">    net asset</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(478</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(478</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(478</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Amortization of unrecognized</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">    net loss
     (gain)</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>231</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">180</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">99</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(1,551</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(1,352</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(1,168</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Amortization of unrecognized</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">    prior service
     cost</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>29</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">29</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">29</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(1,230</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(804</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(641</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="14" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23">Net periodic benefit costs</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="23"><B>$ 1,037</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="23">$    817</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="23">$    531</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="23"><B>$(2,057</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="23">$    
      (967</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="23">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="23"> $ (196</TD>
   <TD ALIGN="LEFT" HEIGHT="23">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
  </TR>
  <TR VALIGN="BOTTOM">
  </TR>
  <TR>
   <TD COLSPAN="14" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="2">
     </TD>
  </TR>
 </TABLE>
 <P ALIGN=left>Changes in benefit obligations are as follows:</P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="%" ALIGN="RIGHT" HEIGHT="%"><B></B></TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"><B></B></TD>
   <TD WIDTH="%" ALIGN="RIGHT" HEIGHT="%"></TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="%" ALIGN="RIGHT" COLSPAN="4" HEIGHT="%"> <DIV
     ALIGN="CENTER">Other</DIV>
   </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%">      
                 
                 
                 
                 
        </TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="%" ALIGN="RIGHT" COLSPAN="3" HEIGHT="%"> <DIV
     ALIGN="CENTER">Pension Benefits</DIV>
   </TD>
   <TD WIDTH="%" ALIGN="LEFT" HEIGHT="%"> </TD>
   <TD WIDTH="%" ALIGN="RIGHT" COLSPAN="4" HEIGHT="%"> <DIV
     ALIGN="CENTER">Postretirement Benefits</DIV>
   </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="0%" HEIGHT="%" COLSPAN="3" VALIGN="top"> <HR
     NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="RIGHT" WIDTH="0%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="0%" HEIGHT="%" COLSPAN="4" VALIGN="top"> <HR
     NOSHADE COLOR="Black" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>1999</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1998</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>1999</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1998</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Benefit obligation at January 1</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>$ 30,132</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$ 27,932</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>$   9,621</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$ 16,315</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Service cost</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>808</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">730</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>99</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">108</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Interest cost</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>2,024</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1,919</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>625</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1,081</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Plan participants’
     contributions</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>265</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">211</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Amendments</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(4,628</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Actuarial (gain) loss</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(3,480</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">1,030</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>2,972</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(2,494</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Benefits paid</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(1,673</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(1,479</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(1,288</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(972</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Benefit obligation at December 31</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>27,811</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">30,132</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>12,294</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">9,621</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Change in plan assets:</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Fair value of plan assets at January
     1</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>23,966</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">22,990</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Actual return on plan assets</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(517</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">2,020</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Company contributions</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>864</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">435</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>1,023</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">761</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Plan participants’
     contributions</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>265</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">211</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Benefits paid</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(1,673</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(1,479</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(1,288</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(972</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Fair value of plan assets at December
     31</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>22,640</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">23,966</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Benefit obligation over plan
     assets</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>5,171</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">6,166</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>12,294</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">9,621</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Unrecognized net actuarial (loss)
     gain</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(3,436</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(5,054</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>15,974</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">20,497</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Unrecognized prior service (cost)
     gain</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>(236</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">(264</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>9,119</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">10,349</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Unrecognized net asset</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>478</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">956</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="1">
     </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%">Net benefit obligation</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>$   1,977</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$   1,804</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%"><B>$ 37,387</B></TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="%" HEIGHT="%">$ 40,467</TD>
   <TD ALIGN="LEFT" WIDTH="%" HEIGHT="%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="%" HEIGHT="%"> <HR NOSHADE COLOR="Black" SIZE="2">
     </TD>
  </TR>
 </TABLE>
 <P> </P>
 <P ALIGN="center">18</P>
 <P></P>
 <FONT
 SIZE=3> <P ALIGN=left>Amounts recognized in the balance sheet consist of:</P>
 </FONT>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TD WIDTH="35%" ALIGN="LEFT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT" COLSPAN="4"> <DIV ALIGN="CENTER">Pension Benefits</DIV>
   </TD>
   <TD WIDTH="15%" ALIGN="RIGHT" COLSPAN="4"> <DIV ALIGN="CENTER">Other
   <BR>
   Postretirement Benefits</DIV>
   </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="35%" ALIGN="LEFT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="15%" ALIGN="RIGHT" COLSPAN="4" VALIGN="top"> <HR NOSHADE
     ALIGN="center" WIDTH="90%" SIZE="1"> </TD>
   <TD WIDTH="15%" ALIGN="RIGHT" COLSPAN="4" VALIGN="top"> <HR NOSHADE
     ALIGN="center" WIDTH="90%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="35%" ALIGN="LEFT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT"><B>1999</B></TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT">1998</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT"><B>1999</B></TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT">1998</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="35%" ALIGN="LEFT" COLSPAN="10"> <HR NOSHADE ALIGN="left"
     WIDTH="99%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="35%" ALIGN="LEFT">Accrued benefit liability</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT"><B>$ 3,202</B></TD>
   <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
   <TD WIDTH="10%" ALIGN="RIGHT">$ 3,787</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT"><B>$37,387</B></TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="10%" ALIGN="RIGHT">$40,467</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="35%">Intangible asset</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>(236</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%">(264</TD>
   <TD ALIGN="LEFT" WIDTH="5%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B></B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="35%" NOWRAP>Accumulated other comprehensive loss</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>(989</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"><B>)</B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%">(1,719</TD>
   <TD ALIGN="LEFT" WIDTH="5%">)</TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B></B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="35%"> <HR NOSHADE COLOR="Black" SIZE="2" WIDTH="99%"
     ALIGN="left"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="35%">Net benefit obligation</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>$ 1,977</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"><B></B></TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$ 1,804</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%"><B>$37,387</B></TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="10%">$40,467</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR>
   <TD COLSPAN="10" WIDTH="35%"> <HR NOSHADE COLOR="Black" SIZE="2" WIDTH="99%"
     ALIGN="left"> </TD>
  </TR>
 </TABLE>
 <P><FONT
 SIZE=3>Weighted-average assumptions are as follows: </FONT></P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
   <TH COLSPAN="2" WIDTH="33%"></TH>
   <TH COLSPAN="2" WIDTH="7%"></TH>
   <TH COLSPAN="2" WIDTH="7%"></TH>
   <TH COLSPAN="2" WIDTH="7%"></TH>
   <TH COLSPAN="2" WIDTH="7%"></TH>
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="LEFT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT" COLSPAN="5" WIDTH="7%"> <DIV ALIGN="CENTER">Other</DIV>
   </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="LEFT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT" COLSPAN="5"> <DIV ALIGN="CENTER">Pension
     Benefits</DIV>
   </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT" COLSPAN="5" WIDTH="7%"> <DIV ALIGN="CENTER">Postretirement
     Benefits</DIV>
   </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="LEFT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT" COLSPAN="6" VALIGN="top"> <HR NOSHADE ALIGN="center"
     WIDTH="90%" SIZE="1"> </TD>
   <TD ALIGN="RIGHT" WIDTH="36%" COLSPAN="6" VALIGN="top"> <HR NOSHADE
     ALIGN="center" WIDTH="90%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="LEFT">Year Ended December 31</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"><B>1999</B></TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT">1998</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT">1997</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>1999</B></TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT">1998</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT">1997</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="LEFT" COLSPAN="14"> <HR NOSHADE ALIGN="left"
     WIDTH="98%" SIZE="1"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="LEFT">Discount rate</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"> <DIV ALIGN="RIGHT"><B>8.00</B></DIV>
   </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> <DIV ALIGN="LEFT"><B>%</B></DIV>
   </TD>
   <TD WIDTH="7%" ALIGN="RIGHT">6.75</TD>
   <TD WIDTH="5%" ALIGN="LEFT">%</TD>
   <TD WIDTH="7%" ALIGN="RIGHT">7.00</TD>
   <TD WIDTH="5%" ALIGN="LEFT">%</TD>
   <TD ALIGN="RIGHT" WIDTH="7%"><B>8.00</B></TD>
   <TD WIDTH="5%" ALIGN="LEFT"><B>%</B></TD>
   <TD WIDTH="7%" ALIGN="RIGHT">6.75</TD>
   <TD WIDTH="5%" ALIGN="LEFT">%</TD>
   <TD WIDTH="7%" ALIGN="RIGHT">7.00</TD>
   <TD WIDTH="5%" ALIGN="LEFT">%</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="33%" ALIGN="LEFT" NOWRAP>Expected return on plan assets</TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"> <DIV ALIGN="RIGHT"><B>6.75</B></DIV>
   </TD>
   <TD WIDTH="5%" ALIGN="LEFT"><B>%</B></TD>
   <TD WIDTH="7%" ALIGN="RIGHT">7.00</TD>
   <TD WIDTH="5%" ALIGN="LEFT">%</TD>
   <TD WIDTH="7%" ALIGN="RIGHT">7.50</TD>
   <TD WIDTH="5%" ALIGN="LEFT">%</TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
   <TD WIDTH="7%" ALIGN="RIGHT"> </TD>
   <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="33%">Rate of compensation increase</TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> <DIV ALIGN="RIGHT"><B>5.50</B></DIV>
   </TD>
   <TD ALIGN="LEFT" WIDTH="5%"><B>%</B></TD>
   <TD ALIGN="RIGHT" WIDTH="7%">5.50</TD>
   <TD ALIGN="LEFT" WIDTH="5%">%</TD>
   <TD ALIGN="RIGHT" WIDTH="7%">5.50</TD>
   <TD ALIGN="LEFT" WIDTH="5%">%</TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
   <TD ALIGN="RIGHT" WIDTH="7%"> </TD>
   <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" COLSPAN="14" WIDTH="33%"> <HR NOSHADE ALIGN="left"
     WIDTH="98%" SIZE="1"> </TD>
  </TR>
 </TABLE>
 <P>For measurement purposes, a trend rate of 9.0% pre-65 and 8.25% post-65,
   for covered costs was used. These trend rates are expected to decrease
   gradually to 6.0% and 4.75% at rates from .5% to .25% per annum. An increase
   (or decrease) of one percentage point in assumed health care cost trend
   rates would increase (or decrease) the postretirement benefit obligation by
   approximately $1,183 (or $1,028) and the total of service and interest cost
   components of net periodic postretirement benefit cost by approximately $84
   (or $74).</P>
 <FONT
 SIZE=3><P ALIGN=left><B>Note 5. Quarterly Financial Data (Unaudited)
   —</B></P>
 </FONT>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TH COLSPAN="2"></TH>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">1999 Quarters Ended</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>Dec. 31</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>Sept. 30</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>June 30</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>March 31</B></TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="100%" ALIGN="LEFT" COLSPAN="10"> <HR NOSHADE ALIGN="left"
    WIDTH="98%" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">Net sales</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>$38,123</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>$37,609</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>$29,404</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>$28,877</B></TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">Cost of sales</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>17,853</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>18,024</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>14,872</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>15,181</B></TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">Net income</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>6,520</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>3,460</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>2,317</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>2,323</B></TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">Net income per share</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>1.42</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>.75</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>.50</B></TD>
  <TD WIDTH="5%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="11%" ALIGN="RIGHT"><B>.51</B></TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">1998 Quarters Ended</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">Dec. 31</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">Sept. 30</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">June 30</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">March 31</TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="100%" ALIGN="LEFT" COLSPAN="10"> <HR NOSHADE ALIGN="LEFT"
    WIDTH="98%" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">Net sales</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">$37,496</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">$33,920</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">$26,815</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT">$30,926</TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">Cost of sales</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">17,016</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">16,853</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">14,528</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">17,448</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">Net income</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">3,403</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">3,241</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">1,919</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">2,357</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">Net income per share</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">.74</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">.70</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">.42</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT">.51</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
</TABLE>
<HR NOSHADE ALIGN="LEFT" WIDTH="98%" SIZE="1"><FONT
SIZE=3><P ALIGN=left>
<BR>
The Company’s net sales are traditionally greater in the third and fourth
  quarters in anticipation of the winter holiday season.</P>
</FONT> <P> </P>
<P ALIGN="center">19</P>
<P></P>
<FONT
SIZE=3><H2 ALIGN=LEFT><FONT
SIZE=3>Note 6. Geographic Information —</FONT></H2>
<P ALIGN=left>The Company operates predominantly in a single industry segment,
  that being the distribution and sale of watches and clocks under the brand
  names of Bulova, Caravelle and Accutron. Substantially all of the Company
  ’s sales are in the United States and Canada. The Company evaluates
  performance based on operating earnings of the respective geographic area and
  the geographic distributions of the Company’s identifiable assets and
  operating results are summarized in the following tables:</P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">Year Ended December 31, 1999</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT">United States</TD>
  <TD WIDTH="7%" ALIGN="LEFT"><B></B></TD>
  <TD WIDTH="15%" ALIGN="RIGHT">Canada</TD>
  <TD WIDTH="7%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT">Total</TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%"> </TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B></B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Sales</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 122,360</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 13,991</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 136,351</B></TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Intercompany sales</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>(2,338</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B>)</B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B></B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>(2,338</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%">)</TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Total net sales</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 120,022</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 13,991</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 134,013</B></TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%"> </TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B></B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B></B></TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Operating income</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$   14,527</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$   1,617</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$   16,144</B></TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Royalties</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>3,574</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B></B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>3,574</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Interest - net</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>1,516</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>68</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>1,584</B></TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Other</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>(535</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B>)</B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>1</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>(534</B></TD>
  <TD ALIGN="LEFT" WIDTH="2%">)</TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Income before tax</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$   19,082</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$   1,686</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$   20,768</B></TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Identifiable assets</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 166,303</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 12,490</B></TD>
  <TD ALIGN="LEFT" WIDTH="7%"><B></B></TD>
  <TD ALIGN="RIGHT" WIDTH="15%"><B>$ 178,793</B></TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR>
  <TD WIDTH="34%" HEIGHT="25"> </TD>
 </TR>
 <TR>
  <TD WIDTH="34%"> Year Ended December 31, 1998 </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="7%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="7%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT" HEIGHT="22">Sales</TD>
  <TD WIDTH="5%" ALIGN="LEFT" HEIGHT="22"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT" HEIGHT="22">$ 118,357</TD>
  <TD WIDTH="7%" ALIGN="LEFT" HEIGHT="22"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT" HEIGHT="22">$ 13,052</TD>
  <TD WIDTH="7%" ALIGN="LEFT" HEIGHT="22"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT" HEIGHT="22">$131,409</TD>
  <TD WIDTH="2%" ALIGN="LEFT" HEIGHT="22"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Intercompany sales</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">(2,252</TD>
  <TD ALIGN="LEFT" WIDTH="7%">)</TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">(2,252</TD>
  <TD ALIGN="LEFT" WIDTH="7%">)</TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Total net sales</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 116,105</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 13,052</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$129,157</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%"> </TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Operating income</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$   11,466</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$   1,381</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$  12,847</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Royalties</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">3,581</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">3,581</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Interest - net</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">1,860</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">36</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">1,896</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Other</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">233</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">53</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">286</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Income before tax</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$   17,140</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$   1,470</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$  18,610</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Identifiable assets</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 153,311</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 11,141</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$164,452</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR>
  <TD WIDTH="34%"> </TD>
 </TR>
 <TR>
  <TD WIDTH="34%"> Year Ended December 31, 1997 </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="7%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="7%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="34%" ALIGN="LEFT">Sales</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT">$ 112,519</TD>
  <TD WIDTH="7%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT">$ 13,013</TD>
  <TD WIDTH="7%" ALIGN="LEFT"> </TD>
  <TD WIDTH="15%" ALIGN="RIGHT">$125,532</TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Intercompany sales</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">(2,089</TD>
  <TD ALIGN="LEFT" WIDTH="7%">)</TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">(2,089</TD>
  <TD ALIGN="LEFT" WIDTH="7%">)</TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Total net sales</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 110,430</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 13,013</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$123,443</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%"> </TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Operating income</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$     8,588</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$   1,286</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$    9,874</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Royalties</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">3,606</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">3,606</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Interest - net</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">1,482</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">(162</TD>
  <TD ALIGN="LEFT" WIDTH="7%">)</TD>
  <TD ALIGN="RIGHT" WIDTH="15%">1,320</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Other</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">503</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">(12</TD>
  <TD ALIGN="LEFT" WIDTH="7%">)</TD>
  <TD ALIGN="RIGHT" WIDTH="15%">491</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Income before tax</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$   14,179</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$   1,112</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$  15,291</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="34%">Identifiable assets</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 144,115</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$ 11,435</TD>
  <TD ALIGN="LEFT" WIDTH="7%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="15%">$155,550</TD>
  <TD ALIGN="LEFT" WIDTH="2%"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="8"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
 </TR>
</TABLE>
</FONT>  <P> </P>
<P ALIGN="center">20</P>
<P></P>
<H2 ALIGN=LEFT><FONT
SIZE=3>Note 7. Leases —</FONT></H2>
<P ALIGN=left>The Company leases certain of its warehouse and office
  facilities. The future minimum lease payments under operating leases for the
  three years ending December 31, 2002 are $70, $72 and $12, respectively.</P>
<H2 ALIGN=LEFT><FONT
SIZE=3>Note 8. Contingencies and Litigation —</FONT></H2>
<P ALIGN=left>(a) Environmental Matters — Prior to 1996, the Company had
  received notice of environmental contaminates at various manufacturing
  facilities. The Company has provided for the expected costs of remediation in
  those earlier years. The Company has cooperated with the current owners of
  those properties and the appropriate regulatory agencies. It believes that it
  has substantially addressed these contingencies. At December 31, 1999, the
  remaining environmental liability recognized in the Company’s financial
  statements of $132 represents the minimum of the Company’s estimated
  range in equally likely outcomes, the upper limit of the range is
  approximately $500.</P>
<P ALIGN=left>(b) Arbitral Award — In 1991, the Company and a third party
  commenced an arbitration proceeding before the Netherlands Arbitration
  Institute contesting the attempt of Benetton International N.V. (
  “Benetton”) to prematurely terminate the license agreement for
  “Benetton by Bulova” timepieces and seeking damages in relation
  thereto. (The license agreement subsequently terminated in 1994). The
  arbitral panel determined that Benetton was not entitled to terminate the
  License Agreement prior to the expiration of its term and awarded damages to
  the Company in relation thereto.</P>
<P ALIGN=left>Benetton has commenced proceedings in the Dutch courts seeking to
  overturn the arbitral award on a number of grounds and, pending the outcome
  of those proceedings, to suspend enforcement of the damage award. The Dutch
  courts have refused to suspend enforcement of the damage award and on
  February 12, 1996, the Company received approximately $3,857 which
  represented damages, costs and interest. The funds received are subject to
  return, with interest, if the Dutch courts ultimately uphold Benetton’s
  petition to overturn the arbitral award. As a result, the Company has
  deferred recognition of the award and recorded a deferred credit with accrued
  interest. On September 16, 1999 the Court of Appeal of the Hague,
  Netherlands, rejected the claims by Benetton to overturn the arbitral award.
  Benetton has since appealed this decision to the Netherlands Supreme Court. A
  decision by the Supreme Court is not expected for many months. The Company
  believes that this is the last appeal available to Benetton. Benetton has
  commenced a second arbitration proceeding, asserting claims against the
  Company and the Company has asserted counter claims against Benetton in
  relation to the license agreement.</P>
<P ALIGN=CENTER>* * * *</P>
<P ALIGN=left>It is not possible to predict the outcome of pending litigation;
  however, on the basis of the facts presently known to it, management does not
  believe the actions pending will have a material adverse effect on the
  financial condition or results of operations of the Company. Should
  additional facts arise in the future indicating a probable adverse
  determination of any such actions, such ultimate determination might have a
  material adverse effect upon the Company’s results of operations or
  financial condition. </P>
<P ALIGN=left> </P>
<P ALIGN=center>21</P>
<P ALIGN=left></P>
<H2 ALIGN=LEFT><FONT
SIZE=3>
<A NAME="#847tx10"></A>
Item 9. Changes in and Disagreements with Accountants on Accounting and
  Financial Disclosure.</FONT></H2>
<P ALIGN=left>    None.</P>
<H2 ALIGN=center><FONT
SIZE=3>PART III</FONT></H2>
<H2 ALIGN=LEFT><FONT
SIZE=3>
<A NAME="#847tx11"></A>
Item 10. Directors and Executive Officers of the Registrant.</FONT></H2>
<H2 ALIGN=LEFT><FONT
SIZE=3>(a) Directors.</FONT></H2>
<TABLE BORDER=0 WIDTH=100% CELLSPACING=0 CELLPADDING=0>
 <TR VALIGN="BOTTOM">
  <TH HEIGHT="%" WIDTH="18%">Name</TH>
  <TH HEIGHT="%" WIDTH="5%">Age</TH>
  <TH HEIGHT="%" WIDTH="51%">Principal Occupations
  <BR>
  During Past Five Years
  <BR>
  and Other Directorships</TH>
  <TH HEIGHT="%" WIDTH="26%">Director of
  <BR>
  the Company
  <BR>
  Since</TH>
 </TR>
 <TR VALIGN="TOP">
  <TD HEIGHT="%" COLSPAN="4"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1">
    </TD>
 </TR>
 <TR VALIGN="TOP">
  <TD HEIGHT="%" WIDTH="18%">Andrew H. Tisch</TD>
  <TD HEIGHT="%" WIDTH="5%"> <DIV ALIGN="CENTER">50</DIV>
  </TD>
  <TD HEIGHT="%" WIDTH="51%">Chairman of the Board of the Company. Mr. Tisch is
    also the Chairman of the Executive Committee and a member of the Office of
    the President of Loews since January 1999. Prior thereto he had been
    Chairman of the Management Committee of Loews. Mr. Tisch is also a director
    of Loews, Zale Corporation, Canary Wharf PLC and Integrated Graphics,
    Inc.</TD>
  <TD HEIGHT="%" WIDTH="26%"> <DIV ALIGN="CENTER">1979</DIV>
  </TD>
 </TR>
 <TR VALIGN="TOP">
  <TD HEIGHT="%" WIDTH="18%" NOWRAP>Herbert C. Hofmann</TD>
  <TD HEIGHT="%" WIDTH="5%"> <DIV ALIGN="CENTER">57</DIV>
  </TD>
  <TD HEIGHT="%" WIDTH="51%">President and Chief Executive Officer of the
    Company Mr. Hofmann is also a director of Diamond Offshore Drilling, Inc.
    (52% owned subsidiary of Loews) and also serves as Senior Vice President of
    Loews.</TD>
  <TD HEIGHT="%" WIDTH="26%"> <DIV ALIGN="CENTER">1979</DIV>
  </TD>
 </TR>
 <TR VALIGN="TOP">
  <TD HEIGHT="%" WIDTH="18%">Harry B. Henshel</TD>
  <TD HEIGHT="%" WIDTH="5%"> <DIV ALIGN="CENTER">81</DIV>
  </TD>
  <TD HEIGHT="%" WIDTH="51%">Vice Chairman of the Board of the Company.</TD>
  <TD HEIGHT="%" WIDTH="26%"> <DIV ALIGN="CENTER">1958</DIV>
  </TD>
 </TR>
 <TR VALIGN="TOP">
  <TD HEIGHT="%" WIDTH="18%">Laurence A. Tisch</TD>
  <TD HEIGHT="%" WIDTH="5%"> <DIV ALIGN="CENTER">77</DIV>
  </TD>
  <TD HEIGHT="%" WIDTH="51%">Co-Chairman of the Board of Loews. Prior to
    January 1999, Mr. Tisch had also been Co-Chief Executive Officer of Loews.
    Mr. Tisch is also Chief Executive Officer and a director of CNA Financial
    Corporation (“CNA”) (86% owned subsidiary of Loews). Mr. Tisch
    also serves as a director of Automatic Data Processing, Inc.</TD>
  <TD HEIGHT="%" WIDTH="26%"> <DIV ALIGN="CENTER">1979</DIV>
  </TD>
 </TR>
 <TR VALIGN="TOP">
  <TD HEIGHT="%" WIDTH="18%">Preston R. Tisch</TD>
  <TD HEIGHT="%" WIDTH="5%"> <DIV ALIGN="CENTER">73</DIV>
  </TD>
  <TD HEIGHT="%" WIDTH="51%">Co-Chairman of the Board of Loews. Prior to
    January 1999, Mr. Tisch had also been Co-Chief Executive Officer of Loews.
    Mr. Tisch served as Postmaster General of the United States from August 15,
    1986 to February 26, 1988. Prior thereto he had served as President and
    Chief Operating Officer of Loews since 1969 and as a director of Loews
    since 1960. He was re-elected a director of Loews in March 1988. Mr. Tisch
    is also a director of CNA, Hasbro, Inc. and Rite Aid Corporation.</TD>
  <TD HEIGHT="%" WIDTH="26%"> <DIV ALIGN="CENTER">1988</DIV>
  </TD>
 </TR>
</TABLE>
<P>     Messrs. Laurence A. Tisch and Preston R. Tisch
  are brothers and Mr. Andrew H. Tisch is the son of Mr. Laurence A. Tisch.
  There are no other family relationships among any of the Company’s
  directors. </P>
<P>     Each director serves until the annual meeting
  of shareholders next succeeding his election and until his successor shall
  have been duly elected and qualified. </P>
<P> </P>
<P ALIGN="center">22</P>
<P></P>
<H2 ALIGN=LEFT><FONT
SIZE=3>(b) Executive Officers.</FONT></H2>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
 <TR VALIGN="BOTTOM">
  <TH COLSPAN="2" WIDTH="%">Name</TH>
  <TH COLSPAN="2" WIDTH="%">Position and Offices Held</TH>
  <TH COLSPAN="2" WIDTH="%">Age</TH>
  <TH COLSPAN="2" WIDTH="%">First Became an
  <BR>
  Officer</TH>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="%" ALIGN="LEFT" COLSPAN="8"> <HR ALIGN=LEFT WIDTH=100% SIZE=1
    NOSHADE> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="%" ALIGN="LEFT">Herbert C. Hofmann</TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="LEFT">President and Chief Executive Officer</TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="RIGHT"> <DIV ALIGN="CENTER">57</DIV>
  </TD>
  <TD WIDTH="%" ALIGN="LEFT"> <DIV ALIGN="CENTER"></DIV>
  </TD>
  <TD WIDTH="%" ALIGN="LEFT"> <DIV ALIGN="CENTER">1985</DIV>
  </TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Warren J. Neitzel</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%">General Counsel and Corporate Secretary</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> <DIV ALIGN="CENTER">49</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> <DIV ALIGN="CENTER"></DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> <DIV ALIGN="CENTER">1993</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">John T. O’Reilly</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%">Vice President and Controller</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> <DIV ALIGN="CENTER">39</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> <DIV ALIGN="CENTER"></DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> <DIV ALIGN="CENTER">1996</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Paul S. Sayegh</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%">Chief Operating Officer</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> <DIV ALIGN="CENTER">56</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> <DIV ALIGN="CENTER"></DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> <DIV ALIGN="CENTER">1979</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
</TABLE>
<P>     There are no family relationships among the
  above. Officers are elected and hold office until their successors are
  elected and qualified, and are subject to removal by the Board of Directors.
  All officers of the Company, have been engaged actively and continuously in
  the business of the Company and its subsidiaries for more than the past five
  years. </P>
<H2 ALIGN=LEFT><FONT
SIZE=3>
<A NAME="#847tx12"></A>
Item 11. Executive Compensation.</FONT></H2>
<H3 ALIGN=LEFT><FONT
SIZE=3><I>    </I>(a) General.</FONT></H3>
<P>     The following table sets forth information for
  the years indicated regarding the compensation of the chief executive officer
  and each of the other three most highly compensated executive officers of the
  Company whose compensation exceeded $100,000 as of December 31, 1999, for
  services in all capacities to the Company. </P>
<H1 ALIGN=CENTER><FONT
SIZE=3>Summary Compensation Table</FONT></H1>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
 <TR VALIGN="BOTTOM">
  <TH COLSPAN="2"> <DIV ALIGN="left">       
                
         Name and Principal Position</DIV>
  </TH>
  <TH>Year</TH>
  <TH> </TH>
  <TH>Salary</TH>
  <TH></TH>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="100%" ALIGN="LEFT" COLSPAN="6"> <HR NOSHADE ALIGN="right"
    WIDTH="100%" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="74%" ALIGN="LEFT">Herbert C. Hofmann</TD>
  <TD WIDTH="4%" ALIGN="LEFT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> <DIV ALIGN="CENTER">1999</DIV>
  </TD>
  <TD WIDTH="4%" ALIGN="LEFT"> </TD>
  <TD WIDTH="11%" ALIGN="RIGHT"> <DIV ALIGN="CENTER">--</DIV>
  </TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">        
     President and Chief Executive Officer (a)</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1998</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">--</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1997</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">--</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">Paul S. Sayegh</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1999</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="center"> $278,000   </DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">         Chief
    Operating Officer</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1998</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">262,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1997</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">245,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">Warren J. Neitzel</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1999</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">153,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">        
     General Counsel and Corporate Secretary</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1998</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">144,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1997</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">140,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">John T. O’Reilly</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1999</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">117,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT">         Vice
    President and Controller</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1998</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">104,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="LEFT"> <DIV ALIGN="CENTER">1997</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="CENTER">103,000</DIV>
  </TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR>
  <TD COLSPAN="6"> <HR NOSHADE COLOR="Black" SIZE="1" WIDTH="10%" ALIGN="LEFT">
    </TD>
 </TR>
</TABLE>
<P>     (a) Mr. Hofmann is compensated by Loews.
  Included in the charges to the Company under a Service Agreement, as
  discussed in Item 13 of this Form 10-K, was $240,000 for Mr. Hofmann’s
  services in each of the years ended December 31, 1999 and 1998, and $200,000
  in the year ended December 31, 1997. </P>
<P> </P>
<P ALIGN="center">23 </P>
<P></P>
<H3 ALIGN=LEFT><FONT
SIZE=3>   (b) Compensation Pursuant to Plans.</FONT></H3>
<P>     Information with respect to certain non-cash
  compensation made available to the Company’s executive officers in 1999,
  has not been included because the incremental costs thereof to the Company
  was below the Securities and Exchange Commission’s required disclosure
  threshold. </P>
<P>     The Company provides a non-contributory
  retirement plan (the “Plan”) for all employees, except for those
  covered by Loews’s benefit plans, which Plan provides pensions upon
  retirement at one and one-half per cent of the employee’s annual
  compensation during each year of credited service after December 31, 1976,
  plus one and one-half per cent of annual compensation for the year 1976
  multiplied by the number of years of credited service rendered prior to
  January 1, 1977. Compensation under the Plan includes all compensation as an
  employee included in the table above. Pension benefits are not subject to
  reduction for Social Security benefits or other amounts. The following table
  shows estimated annual benefits payable upon retirement under the Plan for
  various amounts of average compensation and years of credited service, based
  upon retirement in 2000 and a straight life annuity form of pension. Other
  forms of pension payments are also available under the Plan. Pension benefits
  may be limited by the Internal Revenue Code. </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
 <TR VALIGN="BOTTOM">
 </TR>
 <TR VALIGN="BOTTOM">
  <TH COLSPAN="2">Remuneration</TH>
  <TH COLSPAN="10">Estimated Annual Pension for Representative
  <BR>
  Years of Credited Service</TH>
 </TR>
 <TR VALIGN="top">
  <TD COLSPAN="12"> <HR NOSHADE SIZE="1" WIDTH="100%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD COLSPAN="2"> <DIV ALIGN="center"></DIV>
  </TD>
  <TD COLSPAN="2"> <DIV ALIGN="center">15 </DIV>
  <HR WIDTH=40% SIZE=1 COLOR=BLACK NOSHADE ALIGN="center"> </TD>
  <TD COLSPAN="2"> <DIV ALIGN="center">20 </DIV>
  <HR WIDTH=40% SIZE=1 COLOR=BLACK NOSHADE ALIGN="center"> </TD>
  <TD COLSPAN="2"> <DIV ALIGN="center">25 </DIV>
  <HR WIDTH=40% SIZE=1 COLOR=BLACK NOSHADE ALIGN="center"> </TD>
  <TD COLSPAN="2"> <DIV ALIGN="center">30 </DIV>
  <HR WIDTH=40% SIZE=1 COLOR=BLACK NOSHADE ALIGN="center"> </TD>
  <TD COLSPAN="2"> <DIV ALIGN="center">35 </DIV>
  <HR WIDTH=40% SIZE=1 COLOR=BLACK NOSHADE ALIGN="center"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="12%" ALIGN="RIGHT">$  50,000</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="9%" ALIGN="RIGHT">$11,250</TD>
  <TD WIDTH="4%" ALIGN="LEFT"> </TD>
  <TD WIDTH="9%" ALIGN="RIGHT">$15,000</TD>
  <TD WIDTH="4%" ALIGN="LEFT"> </TD>
  <TD WIDTH="9%" ALIGN="RIGHT">$18,750</TD>
  <TD WIDTH="4%" ALIGN="LEFT"> </TD>
  <TD WIDTH="9%" ALIGN="RIGHT">$  22,500</TD>
  <TD WIDTH="4%" ALIGN="LEFT"> </TD>
  <TD WIDTH="9%" ALIGN="RIGHT">$  26,250</TD>
  <TD WIDTH="2%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="RIGHT">100,000</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">22,500</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">30,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">37,500</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">45,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">52,500</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="RIGHT">150,000</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">33,750</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">45,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">56,250</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">67,500</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">78,750</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="RIGHT">200,000</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">45,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">60,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">75,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">90,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">105,000</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="RIGHT">250,000</TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">56,250</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">75,000</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">93,750</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">112,500</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT" WIDTH="9%">131,250</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
</TABLE>
<P>     The years of credited service and the
  estimated annual retirement benefit payable at normal retirement age for the
  following officers are as follows: </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
 <TR VALIGN="BOTTOM">
  <TH COLSPAN="2" WIDTH="%"> Name</TH>
  <TH COLSPAN="2" WIDTH="%">Years</TH>
  <TH COLSPAN="2" WIDTH="%">Estimated Annual
  <BR>
  Retirement Benefit </TH>
 </TR>
 <TR VALIGN="top">
  <TD WIDTH="%" ALIGN="LEFT" COLSPAN="6" HEIGHT="20"> <HR NOSHADE ALIGN="right"
    WIDTH="100%" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="%" ALIGN="LEFT">Herbert C. Hofmann*</TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="RIGHT"></TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="RIGHT"></TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Warren J. Neitzel</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> <DIV ALIGN="CENTER">19</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> <DIV ALIGN="CENTER">$61,976</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Paul S. Sayegh*</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">John T. O’Reilly*</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
</TABLE>
<P ALIGN=left>*Not covered under the Plan.</P>
<H2 ALIGN=LEFT><FONT
SIZE=3>
<A NAME="#847tx13"></A>
Item 12. Security ownership of Certain Beneficial Owners and
  Management.</FONT></H2>
<H2 ALIGN=LEFT><FONT
SIZE=3>     (a) Security Ownership of Certain
  Beneficial Owners.</FONT></H2>
<P>     The only person known to the Registrant to be
  the beneficial owner of more than 5% of any class of Registrant’s voting
  securities is Loews, which owns beneficially 4,459,859 shares of the
  outstanding Common Stock of Registrant as of February 25, 2000 constituting
  approximately 97% of the total shares of Common Stock outstanding. Loews
  ’s principal executive offices are located at 667 Madison Avenue, New
  York, New York 10021-8087. For information with respect to the principal
  holders of the outstanding voting securities of Loews, see Item 12 (b) below.
  </P>
<P> </P>
<P ALIGN="center">24</P>
<P></P>
<H2 ALIGN=LEFT><FONT
SIZE=3>(b) Security Ownership of Management.</FONT></H2>
<P>     The following table sets forth certain
  information, as of February 29, 2000, with respect to the shares of Registrant
  ’s Common Stock and shares of Loews Common Stock beneficially owned by
  each of the directors of the Company and executive officers named above and
  by all directors and executive officers of the Company as a group: </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
 <TR VALIGN="BOTTOM">
  <TH COLSPAN="2" WIDTH="%">Name of Individual
  <BR>
  or Number of
  <BR>
  Persons in Group</TH>
  <TH COLSPAN="2" WIDTH="%">Shares of
  <BR>
  Common
  <BR>
  Stock (1)</TH>
  <TH COLSPAN="2" WIDTH="%">Percent of
  <BR>
  Class</TH>
  <TH COLSPAN="2" WIDTH="%">Shares of
  <BR>
  Loews
  <BR>
  Common
  <BR>
  Stock (1)</TH>
  <TH COLSPAN="2" WIDTH="%">Percent of
  <BR>
  Class</TH>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="0%" ALIGN="LEFT" COLSPAN="10"> <HR NOSHADE ALIGN="right"
    WIDTH="100%" SIZE="1"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="%" ALIGN="LEFT">Harry B. Henshel</TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="RIGHT">100</TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="LEFT"> <DIV ALIGN="RIGHT">*</DIV>
  </TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="RIGHT"></TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
  <TD WIDTH="%" ALIGN="RIGHT"></TD>
  <TD WIDTH="%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Herbert C. Hofmann</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD WIDTH="%"> <DIV ALIGN="RIGHT">400</DIV>
  </TD>
  <TD WIDTH="%"></TD>
  <TD WIDTH="%"> <DIV ALIGN="RIGHT">*</DIV>
  </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Warren J. Neitzel</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">John T. O’Reilly</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Paul S. Sayegh</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Andrew H. Tisch</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%">1,002,000</TD>
  <TD ALIGN="LEFT" WIDTH="%">(2)</TD>
  <TD ALIGN="RIGHT" WIDTH="%">1</TD>
  <TD ALIGN="LEFT" WIDTH="%">.0%</TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Laurence A. Tisch</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%">13,308,998</TD>
  <TD ALIGN="LEFT" WIDTH="%">(3)(4)</TD>
  <TD WIDTH="%"> <DIV ALIGN="RIGHT">13</DIV>
  </TD>
  <TD WIDTH="%">.3%</TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">Preston R. Tisch</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%">17,308,998</TD>
  <TD ALIGN="LEFT" WIDTH="%">(3)</TD>
  <TD ALIGN="RIGHT" WIDTH="%">17</TD>
  <TD ALIGN="LEFT" WIDTH="%">.2%</TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">All directors and executive officers as a</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="%">     group (8 listed
    above)</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%">100</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="LEFT" WIDTH="%"> <DIV ALIGN="RIGHT">*</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%">31,620,396</TD>
  <TD ALIGN="LEFT" WIDTH="%"> </TD>
  <TD ALIGN="RIGHT" WIDTH="%">31</TD>
  <TD ALIGN="LEFT" WIDTH="%">.5%</TD>
 </TR>
</TABLE>
<P ALIGN=left>*Represents less than l% of the outstanding shares of stock.</P>
<P>     (1) Except as otherwise indicated, the persons
  listed as beneficial owners of shares of stock have sole voting and
  investment power with respect to such shares. </P>
<P>     (2) Includes 1,000,000 of Loews Common Stock
  held by a trust of which Mr. A. H. Tisch is the managing trustee and
  beneficiary. In addition, 20,000 shares of Common Stock are held by
  charitable foundation as to which Mr. A H. Tisch has shared voting and
  investment power. </P>
<P>     (3) Includes 3,000,000 shares of Loews Common
  Stock held by each of Messrs. L.A. Tisch and P.R. Tisch as trustees of
  trusts, as to which they each have sole voting and investment power, for the
  benefit of their respective wives.</P>
     (4) Includes 2,000,000 shares of Loews Common
  Stock held of record by the wife of Mr. L.A. Tisch. <H2 ALIGN=LEFT><FONT
SIZE=3>
<A NAME="#847tx14"></A>
Item 13. Certain Relationships and Related Transactions.</FONT></H2>
<P>     The Company and Loews have entered into a
  credit agreement (the “Credit Agreement”) providing, under terms
  and conditions set forth therein, for unsecured loans by Loews, from time to
  time, in amounts aggregating up to $50,000,000 bearing interest at the rate
  of 10% per annum currently expiring on June 30, 2001. There has not been any
  borrowings under the Credit Agreement since January 17, 1995. </P>
<P>     The Company and Loews have entered into a tax
  allocation agreement with respect to the filing by Loews of consolidated
  federal income tax returns which include the Company and its subsidiaries.
  Under this agreement, the Company will (i) be paid by Loews the amount, if
  any, by which Loews’s consolidated federal income tax is reduced by
  virtue of the inclusion of the Company and its subsidiaries in Loews’s
  consolidated federal income tax return or (ii) pay to Loews an amount, if
  any, equal to the federal income tax which would have been payable by the
  Company if the Company and its subsidiaries had filed a separate consolidated
  return. This agreement may be canceled by the Company or Loews upon thirty
  days written notice. Pursuant to this agreement, the Company made estimated
  payments to Loews for the year ended December 31, 1999 amounting to
  $6,146,000. </P>
<P>     The Company and Loews have entered into a
  services agreement pursuant to which Loews provides to the Company various
  administrative services, including among other things, data processing,
  purchasing, accounts
payable, printing, tax return preparation, insurance and cash management
  services. In addition, the Company provides Loews with warehousing services.
  Pursuant to this agreement, each party reimburses the other in an amount not
  to exceed the allocated cost of the services provided. The Company paid Loews
  $2,659,000 for services provided during 1999. In addition, the Company has
  reimbursed to Loews approximately $518,000 in salaries and related employee
  benefits for 1999 for employees of Loews on loan to the Company. </P>
<P>     The Company participates in blanket insurance
  policies, primarily relating to property and casualty and general liability
  insurance, which cover properties and facilities of Loews and certain of its
  subsidiaries, including the Company. The Company reimbursed to Loews
  approximately $242,000 for premiums paid with respect to 1999. </P>
<P>     Certain of the Company’s employee health
  and life insurance benefits are provided by an insurance subsidiary of CNA.
  Premiums and fees for such insurance amounted to approximately $198,000 for
  1999. </P>
<H1 ALIGN=CENTER><FONT
SIZE=3>PART IV</FONT></H1>
<H2 ALIGN=LEFT><FONT
SIZE=3>
<A NAME="#847tx15"></A>
Item 14. Exhibits, Financial Statement Schedules and Reports on Form
  8-K.</FONT></H2>
<P>     (a) 1. The consolidated financial statements
  appear above under Item 8. The following additional financial data should be
  read in conjunction with those financial statements. Schedules not included
  with these additional financial data have been omitted because they are not
  applicable or the required information is shown in the consolidated financial
  statements or notes to consolidated financial statements. </P>
<P>     2. Financial statement schedules: </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="650">
 <TR VALIGN="BOTTOM">
  <TH COLSPAN="2" WIDTH="650"></TH>
  <TH COLSPAN="2">Page <U>Number </U> </TH>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="650" ALIGN="LEFT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="3%" ALIGN="RIGHT"> </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD WIDTH="650" ALIGN="LEFT">Independent Auditors’ Report</TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
  <TD WIDTH="3%" ALIGN="RIGHT"> <DIV ALIGN="right">  8</DIV>
  </TD>
  <TD WIDTH="5%" ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="650">Bulova Corporation and Subsidiaries:</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="650">   Schedule II-Valuation and
    Qualifying Accounts</TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> <DIV ALIGN="right">29</DIV>
  </TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="650"> </TD>
  <TD ALIGN="LEFT"> </TD>
  <TD ALIGN="RIGHT"> </TD>
  <TD ALIGN="LEFT" WIDTH="5%"> </TD>
 </TR>
 <TR VALIGN="BOTTOM">
  <TD ALIGN="LEFT" WIDTH="650">    3. Exhibits:</TD>
  <TD ALIGN="LEFT"> </TD>
 </TR>
</TABLE>
</FONT><FONT
SIZE=3>
<TABLE BORDER=0 WIDTH=650 CELLSPACING=0 CELLPADDING=0>
 <TR VALIGN="BOTTOM">
  <TH WIDTH="6%"></TH>
  <TH WIDTH="84%"> </TH>
  <TH WIDTH="10%"> </TH>
 </TR>
 <TR VALIGN="BOTTOM">
  <TH WIDTH="6%"></TH>
  <TH WIDTH="84%"><U>Description</U></TH>
  <TH WIDTH="10%">Exhibit
  <BR>
  <U>Number</U></TH>
 </TR>
 <TR>
  <TD WIDTH="6%"> </TD>
  <TD WIDTH="84%"> </TD>
  <TD WIDTH="10%"></TD>
 </TR>
 <TR>
  <TD WIDTH="6%"><B>(3)</B></TD>
  <TD WIDTH="84%"><B>Articles of Incorporation and By-Laws</B></TD>
  <TD WIDTH="10%"></TD>
 </TR>
 <TR>
  <TD WIDTH="6%"> </TD>
  <TD WIDTH="84%"> </TD>
  <TD VALIGN="BOTTOM" WIDTH="10%"> </TD>
  <TR>
   <TD WIDTH="6%"> </TD>
   <TD WIDTH="84%">Restated Certificate of Incorporation, dated May 25, 1964,
     and filed on August 4, 1964 as Exhibit 3(a) to Amendment No. 2 to
     Registrant’s Registration Statement on Form S-1 (Reg. No. 2-22576),
     incorporated herein by reference. Copies of amendments thereto, dated July
     26, 1966, April 22, 1969 and July 2, 1969, incorporated herein by
     reference to Exhibit 3(a) of Registrant’s Annual Report on Form 10-K
     for the year ended December 31, 1980. Copy of Certificate of Change
     thereto, dated November 25, 1985, incorporated herein by reference to
     Exhibit 3(a) of Registrant’s Annual Report on Form 10-K for the year
     ended December 31, 1985. Copy of Certificate of Change thereto, dated July
     14, 1987, incorporated herein by reference to Exhibit 3(a) of Registrant
     ’s Annual Report on Form 10-K for the year ended December 31, 1987.
     Copy of Certificate of Amendment thereto, dated June 16, 1988,
     incorporated herein by reference to Exhibit 3(a) of Registrant’s
     Annual Report on Form 10-K for the year ended December 31, 1988 </TD>
   <TD VALIGN="BOTTOM" WIDTH="10%"> <DIV ALIGN="center">3(a)</DIV>
   </TD>
   <TR>
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%"> </TD>
    <TD VALIGN="bottom" WIDTH="10%"> </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%">By-laws currently in effect and incorporated herein by
      reference to Exhibit 3(b) of Registrant’s Annual Report on Form 10-K
      for the year ended December 31, 1984</TD>
    <TD VALIGN="bottom" WIDTH="10%"> <DIV ALIGN="CENTER">3(b)</DIV>
    </TD>
   </TR>
  </TABLE>
  </FONT> <P> </P>
  <P ALIGN="center">26</P>
  <P></P>
  <FONT
  SIZE=3>
  <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="650">
   <TR VALIGN="BOTTOM">
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%"> <DIV ALIGN="CENTER"><B><U>Description</U></B></DIV>
    </TD>
    <TD WIDTH="10%"><B>Exhibit
    <BR>
    </B> <U><B>Number </B></U></TD>
   </TR>
   <TR>
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%"> </TD>
    <TD WIDTH="10%"> </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"><B>(10)</B> </TD>
    <TD WIDTH="84%"><B>Material Contracts</B></TD>
    <TD WIDTH="10%"> </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%"> </TD>
    <TD VALIGN="bottom" WIDTH="10%"> </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%">Credit Agreement between Loews Corporation and Registrant
      dated as of September 19, 1979, the form of which was filed as part of
      Exhibit (2) of Item 9(a) of Registrant’s Report on Form 10-Q for the
      quarter ended September 30, 1979, and incorporated herein by reference
      </TD>
    <TD VALIGN="bottom" WIDTH="10%"> <DIV ALIGN="left">   
       10(a)</DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%"> </TD>
    <TD WIDTH="10%"> <DIV ALIGN="left"></DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%">Federal Income Tax Allocation Agreement between Loews
      Corporation and Registrant dated as of March 12, 1980 and effective April
      1, 1979, incorporated herein by reference to Exhibit 10(b) of Registrant
      ’s Annual Report on Form 10-K for the year ended December 31,
      1987</TD>
    <TD WIDTH="10%"> <DIV ALIGN="left">    10(b)</DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%"> </TD>
    <TD VALIGN="bottom" WIDTH="10%"> <DIV ALIGN="left"></DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%">Corporate Services Agreement between Loews Corporation and
      Registrant dated as of January 1, 1987, incorporated herein by reference
      to Exhibit 10(c) of Registrant’s Annual Report on Form 10-K for the
      year ended December 31, 1987</TD>
    <TD VALIGN="bottom" WIDTH="10%"> <DIV ALIGN="left">   
       10(c)</DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%"> </TD>
    <TD WIDTH="10%"> <DIV ALIGN="left"></DIV>
    </TD>
   </TR>
   <TR>
    <TD HEIGHT="21" WIDTH="6%"><B>(21)</B></TD>
    <TD HEIGHT="21" WIDTH="84%"><B>Subsidiaries of the Registrant</B></TD>
    <TD HEIGHT="21" WIDTH="10%"> <DIV ALIGN="left"></DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%"> </TD>
    <TD WIDTH="10%"> <DIV ALIGN="left"></DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"></TD>
    <TD WIDTH="84%">List of subsidiaries of Registrant</TD>
    <TD WIDTH="10%"> <DIV ALIGN="left">    21*</DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%"> </TD>
    <TD WIDTH="10%"> <DIV ALIGN="left"></DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"><B>(27)</B></TD>
    <TD WIDTH="84%"><B>Financial Data Schedule </B></TD>
    <TD WIDTH="10%"> <DIV ALIGN="left">    27*</DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%"> </TD>
    <TD WIDTH="10%"> </TD>
   </TR>
   <TR>
    <TD WIDTH="6%"> </TD>
    <TD WIDTH="84%"><FONT
    SIZE=3> *Filed herewith </FONT> </TD>
    <TD WIDTH="10%"> </TD>
   </TR>
  </TABLE>
  <P ALIGN=left>(b) Reports on Form 8-K:</P>
  </FONT><P>     There were no reports on Form 8-K for
    the three months ended December 31, 1999. </P>
  <P> </P>
  <P ALIGN="center">27</P>
  <P></P>
  <H1 ALIGN=CENTER><FONT
  SIZE=3>SIGNATURES</FONT></H1>
  <P>     Pursuant to the requirements of Section 13
    or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly
    caused this report to be signed on its behalf by the undersigned, thereunto
    duly authorized. </P>

  <TABLE WIDTH="650" BORDER="0" ALIGN="center">
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD WIDTH="1%"> </TD>
    <TD WIDTH="4%"> </TD>
    <TD WIDTH="45%" NOWRAP>BULOVA CORPORATION</TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD WIDTH="1%"> </TD>
    <TD WIDTH="4%"> </TD>
    <TD WIDTH="45%" NOWRAP> </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%" NOWRAP>Dated: March 27, 2000</TD>
    <TD WIDTH="1%"> </TD>
    <TD WIDTH="4%"> <DIV ALIGN="RIGHT">By </DIV>
    </TD>
    <TD WIDTH="45%" NOWRAP> <DIV ALIGN="center">/s/ Paul S. Sayegh
    <BR>
    </DIV>
    <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">(Paul
      S. Sayegh, Chief Operating Officer
    <BR>
    and Principal Financial Officer) </DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD WIDTH="1%"> </TD>
    <TD WIDTH="4%"> </TD>
    <TD WIDTH="45%" NOWRAP> </TD>
   </TR>
  </TABLE>
  <P>     <B>Pursuant to the requirements of the
    Securities Exchange Act of 1934, this report has been signed below by the
    following persons on behalf of the Registrant and in the capacities and on
    the dates indicated.</B></P>
  <TABLE WIDTH="650" BORDER="0" ALIGN="center">
   <TR VALIGN="TOP">
    <TD WIDTH="50%" NOWRAP>Dated: March 27, 2000</TD>
    <TD> </TD>
    <TD WIDTH="5%">By</TD>
    <TD WIDTH="45%"> <DIV ALIGN="center"> /s/ Paul S. Sayegh
    <BR>
    <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> (Herbert C. Hofmann,
      President, Chief
    <BR>
    Executive Officer and Director)</DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD HEIGHT="26" WIDTH="50%"> </TD>
    <TD HEIGHT="26"> </TD>
    <TD HEIGHT="26" WIDTH="5%"> </TD>
    <TD HEIGHT="26" WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%">Dated: March 27, 2000 </TD>
    <TD> </TD>
    <TD WIDTH="5%">By</TD>
    <TD WIDTH="45%"> <DIV ALIGN="center">/s/ Paul S. Sayegh
    <BR>
    </DIV>
    <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">(Paul
      S. Sayegh, Chief Operating Officer
    <BR>
    and Principal Financial Officer) </DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD> </TD>
    <TD WIDTH="5%"> </TD>
    <TD WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%">Dated: March 27, 2000 </TD>
    <TD> </TD>
    <TD WIDTH="5%">By</TD>
    <TD WIDTH="45%"> <DIV ALIGN="center">/s/ John T. O’Reilly
    <BR>
    </DIV>
    <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">(John
      T. O’Reilly,
    <BR>
    Vice President and Controller) </DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD> </TD>
    <TD WIDTH="5%"> </TD>
    <TD WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD> </TD>
    <TD WIDTH="5%">By</TD>
    <TD WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD> </TD>
    <TD WIDTH="5%"> </TD>
    <TD WIDTH="45%"> <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> <DIV
      ALIGN="center">(Harry B. Henshel, Director)</DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD> </TD>
    <TD WIDTH="5%"> </TD>
    <TD WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%">Dated: March 27, 2000</TD>
    <TD> </TD>
    <TD WIDTH="5%">By</TD>
    <TD WIDTH="45%"> <DIV ALIGN="center">/s/ Andrew H. Tisch
    <BR>
    </DIV>
    <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">(Andrew
      H. Tisch, Director)</DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD> </TD>
    <TD WIDTH="5%"> </TD>
    <TD WIDTH="45%"> <DIV ALIGN="center"></DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%">Dated: March 27, 2000</TD>
    <TD> </TD>
    <TD WIDTH="5%">By</TD>
    <TD WIDTH="45%"> <DIV ALIGN="center">/s/ Laurence A. Tisch
    <BR>
    </DIV>
    <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> <DIV
      ALIGN="center">(Laurence A. Tisch, Director) </DIV>
    </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%"> </TD>
    <TD> </TD>
    <TD WIDTH="5%"> </TD>
    <TD WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="TOP">
    <TD WIDTH="50%">Dated: March 27, 2000</TD>
    <TD> </TD>
    <TD WIDTH="5%">By</TD>
    <TD WIDTH="45%"> <DIV ALIGN="center"> /s/ Preston R. Tisch
    <BR>
    </DIV>
    <HR NOSHADE ALIGN="LEFT" WIDTH="100%" SIZE="1"> <DIV
      ALIGN="center">(Preston R. Tisch, Director) </DIV>
    </TD>
   </TR>
  </TABLE>
  <P> </P>
  <P ALIGN="center">28</P>
  <DIV ALIGN="left"></DIV>
  <P> </P>
  <P>  </P>
  <P></P>
  <P ALIGN="right"><B>Schedule II </B></P>
  <H1 ALIGN=CENTER><FONT
  SIZE=3>BULOVA CORPORATION AND SUBSIDIARIES</FONT></H1>
  <H1 ALIGN=CENTER><FONT
  SIZE=3>Valuation and Qualifying Accounts</FONT></H1>
  <H1 ALIGN=CENTER> </H1>

  <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
   <TR VALIGN="BOTTOM">
    <TH WIDTH="45%" VALIGN="bottom"> Column A <HR WIDTH=80% SIZE=1 COLOR=BLACK
      NOSHADE> </TH>
    <TH WIDTH="1%"> </TH>
    <TH COLSPAN="2" WIDTH="15%">Column B <HR WIDTH=80% SIZE=1 COLOR=BLACK
      NOSHADE> </TH>
    <TH COLSPAN="2" WIDTH="10%">Column C <HR WIDTH=80% SIZE=1 COLOR=BLACK
      NOSHADE> </TH>
    <TH COLSPAN="2" WIDTH="10%">Column D <HR WIDTH=80% SIZE=1 COLOR=BLACK
      NOSHADE> </TH>
    <TH COLSPAN="2" WIDTH="15%">Column E <HR WIDTH=80% SIZE=1 COLOR=BLACK
      NOSHADE> </TH>
   </TR>
   <TR VALIGN="BOTTOM">
    <TH WIDTH="45%"> Description <HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE> </TH>
    <TH WIDTH="1%"> </TH>
    <TH COLSPAN="2" WIDTH="15%">Balance at
    <BR>
    beginning
    <BR>
    of Period <HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE> </TH>
    <TH COLSPAN="2" WIDTH="10%">Additions
    <BR>
    charged to
    <BR>
    costs and
    <BR>
    expenses <HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE> </TH>
    <TH COLSPAN="2" WIDTH="10%">Deductions <HR WIDTH=80% SIZE=1 COLOR=BLACK
      NOSHADE> </TH>
    <TH COLSPAN="2" WIDTH="15%">Balance at
    <BR>
    end of
    <BR>
    Period <HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE> </TH>
   </TR>
   <TR VALIGN="BOTTOM">
    <TH COLSPAN="2" WIDTH="45%"> <H5> </H5>
    </TH>
    <TH COLSPAN="2" WIDTH="15%"></TH>
    <TH COLSPAN="2" WIDTH="10%"></TH>
    <TH COLSPAN="2" WIDTH="10%"></TH>
    <TH COLSPAN="2" WIDTH="15%"></TH>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD WIDTH="45%" ALIGN="LEFT"> <H5> </H5>
    </TD>
    <TD WIDTH="1%" ALIGN="LEFT"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="8" WIDTH="15%"></TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD WIDTH="45%" ALIGN="LEFT"> <H5>       
                  
                  
                  
                  
                </H5>
    </TD>
    <TD WIDTH="1%" ALIGN="LEFT"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="8" WIDTH="15%"> <DIV ALIGN="CENTER">
       <B>Year Ended December 31, 1999
    <BR>
    </B>      (In thousands of dollars) </DIV>
    </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for doubtful accounts </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%"><B>$3,222</B></TD>
    <TD ALIGN="LEFT" WIDTH="3"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="10%"><B>$1,336</B></TD>
    <TD ALIGN="LEFT" WIDTH="4%"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="10%"> <DIV ALIGN="RIGHT"><B>$1,018</B></DIV>
    </TD>
    <TD ALIGN="LEFT" WIDTH="48"><B>(a)</B></TD>
    <TD ALIGN="RIGHT" WIDTH="15%"><B>$3,540</B></TD>
    <TD ALIGN="LEFT" WIDTH="1%"><B></B></TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for cash discounts </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%"><B>617</B></TD>
    <TD ALIGN="LEFT" WIDTH="3"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="10%"><B>1,261</B></TD>
    <TD ALIGN="LEFT" WIDTH="4%"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="10%"><B>1,247</B></TD>
    <TD ALIGN="LEFT" WIDTH="48"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="15%"><B>631</B></TD>
    <TD ALIGN="LEFT" WIDTH="1%"><B></B></TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%" VALIGN="top"> <HR NOSHADE
      COLOR="Black" SIZE="1"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"><B></B></TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%"><B>$3,839</B></TD>
    <TD ALIGN="LEFT" WIDTH="3"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="10%"><B>$2,597</B></TD>
    <TD ALIGN="LEFT" WIDTH="4%"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="10%"><B>$2,265</B></TD>
    <TD ALIGN="LEFT" WIDTH="48"><B></B></TD>
    <TD ALIGN="RIGHT" WIDTH="15%"><B>$4,171</B></TD>
    <TD ALIGN="LEFT" WIDTH="1%"><B></B></TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%" VALIGN="top"> <HR NOSHADE
      COLOR="Black" SIZE="2"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%"> <DIV ALIGN="CENTER"><B>Year
      Ended December 31, 1998</B></DIV>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%" HEIGHT="24"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%" HEIGHT="24"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%" HEIGHT="24"> </TD>
    <TD ALIGN="LEFT" WIDTH="3" HEIGHT="24"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="24"> </TD>
    <TD ALIGN="LEFT" WIDTH="4%" HEIGHT="24"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%" HEIGHT="24"> </TD>
    <TD ALIGN="LEFT" WIDTH="48" HEIGHT="24"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%" HEIGHT="24"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%" HEIGHT="24"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for doubtful accounts </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$3,224</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">$1,361</TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">$  1,363</TD>
    <TD ALIGN="LEFT" WIDTH="48">(a)</TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$3,222</TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for cash discounts </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">469</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">1,230</TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">1,082</TD>
    <TD ALIGN="LEFT" WIDTH="48"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">617</TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%" VALIGN="top"> <HR NOSHADE
      COLOR="Black" SIZE="1"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$3,693</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">$2,591</TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%"> <DIV ALIGN="RIGHT">$2,445</DIV>
    </TD>
    <TD ALIGN="LEFT" WIDTH="48"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$3,839</TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%" VALIGN="top"> <HR NOSHADE
      COLOR="Black" SIZE="2"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for loss on investment in </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%">        
        unconsolidated subsidiary </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$   529</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD WIDTH="10%"> <DIV ALIGN="RIGHT">$   529</DIV>
    </TD>
    <TD WIDTH="48"></TD>
    <TD WIDTH="15%"></TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%" VALIGN="top"> <HR NOSHADE
      COLOR="Black" SIZE="2"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%"> <DIV ALIGN="CENTER"><B>Year
      Ended December 31, 1997</B></DIV>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
    <TD ALIGN="LEFT" WIDTH="48"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for doubtful accounts </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$3,514</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">$1,116</TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">$1,406</TD>
    <TD ALIGN="LEFT" WIDTH="48">(a)</TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$3,224</TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for cash discounts </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">548</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">1,010</TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">1,089</TD>
    <TD ALIGN="LEFT" WIDTH="48"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">469</TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR>
    <TD COLSPAN="10" WIDTH="45%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$4,062</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">$2,126</TD>
    <TD ALIGN="LEFT" WIDTH="4%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%">$ 2,495</TD>
    <TD ALIGN="LEFT" WIDTH="48"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$3,693</TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%" VALIGN="top"> <HR NOSHADE
      COLOR="Black" SIZE="2"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> Allowance for loss on investment in
    <BR>
             unconsolidated
      subsidiary </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" WIDTH="15%">$   529</TD>
    <TD ALIGN="LEFT" WIDTH="3"> </TD>
    <TD ALIGN="RIGHT" WIDTH="10%"> </TD>
    <TD ALIGN="LEFT" WIDTH="48"> </TD>
    <TD WIDTH="10%"></TD>
    <TD WIDTH="48"></TD>
    <TD WIDTH="15%"> <DIV ALIGN="RIGHT">$   529</DIV>
    </TD>
   </TR>
   <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="45%"> <H5> </H5>
    </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
    <TD ALIGN="RIGHT" COLSPAN="7" WIDTH="15%" VALIGN="top"> <HR NOSHADE
      COLOR="Black" SIZE="2"> </TD>
    <TD ALIGN="LEFT" WIDTH="1%"> </TD>
   </TR>
  </TABLE>
  <P>_________________ </P>
  <P ALIGN=left>(a) Includes doubtful accounts written off net of
    recoveries.</P>
  <P ALIGN=left> </P>
  <P ALIGN=center>29</P>
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