SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                             ______________________
                                       
                                    FORM 10-K
                                       
                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended:  December 31, 1995      Commission File No.:  0-12392

                               RAWSON-KOENIG, INC.
             (Exact name of registrant as specified in its charter)

            Texas                                                  74-1957377
(State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                               Identification No.)

    2301 Central Parkway
       Houston, Texas                                                 77092
(Address of principal executive offices)                           (Zip Code)

Registrant's telephone number, including area code:  (713) 688-4414

        Class Securities registered pursuant to Section 12(b) of the Act:
                                                           Name of each Exchange
 Title of Each                                               on which registered
     None                                                         Not Applicable

           Securities registered pursuant to Section 12(g) of the Act:
                                       
                      Common Stock, No Par Value Per Share
                   Preferred Stock, $10.00 Par Value Per Share

     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.
Yes  x   No
    ---     ---

     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 any definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
Amendment to this Form 10-K. [ ]

     State the aggregate market value of the voting stock held by non-affiliates
of the registrant.  The aggregate market value shall be computed by reference to
the price at which the stock was sold, or the average bid and asked prices of
such stock, as of a specified date within 60 days prior to the date of filing.
                  January 31, 1996                  $1,457,545
                                       
     Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
     Common Stock outstanding as of:  February 21, 1996 -- 3,901,190 shares
                                       
                       Documents Incorporated by Reference

     List hereunder the following documents if incorporated by reference and the
part  of the Form 10-K (e.g., Part I, Part II, etc.) into which the document  is
incorporated:   (1)  any annual report to security holders;  (2)  any  proxy  or
information statement; and (3) any prospectus filed pursuant to Rule  424(b)  or
(c)  under  the Securities Act of 1933.  The listed documents should be  clearly
described for identification purposes.  None

                                       -1-
<PAGE>

                               RAWSON-KOENIG, INC.

                                    FORM 10-K
                                       
                                     PART I
                                       
                                       
ITEM 1.  BUSINESS
(a)  The Registrant designs, manufactures and markets certain equipment for
     light trucks, principally under the "Rawson-Koenig" name.  As used in this
     report, the term "the Registrant" refers to Rawson-Koenig, Inc. unless a
     contrary or more limited meaning is indicated by the context.  The
     Registrant was incorporated in Texas on November 18, 1977.

     The demand for the products manufactured by the Registrant is cyclical, and
     tied to the general economic conditions of the geographic market for the
     Registrant's products.  In particular, demand for the Registrant's products
     is related to certain service industries, including construction and public
     utilities.  The primary market for the Registrant's products is the United
     States.

     The ability of the Registrant to improve its results of operations and
     recover the cost of its assets through operations is dependent on
     improvements in manufacturing efficiency and increased sales volume through
     the expansion of its distribution base and the introduction of new and
     improved product lines.  See paragraph (c)(xi) below for a discussion of
     the Registrant's research and development activities.

(b)  The Registrant operates in the truck equipment industry segment, which
     accounted for approximately 100% of its business in 1995.  See the
     Financial Statements of Registrant included in this report for data
     relating to the amounts of sales for the last three years.

(c)  The following paragraphs provide information as to specific aspects of the
     Registrant's business.

     (i)    Substantially all of the Registrant's products are truck equipment,
            which includes truck service bodies, truck tool boxes, winches and
            truck-mounted cranes.  Service bodies are structures mounted on a
            truck chassis in order to provide cover, storage space or working
            space, while tool boxes are simpler and usually smaller structures
            which are also truck-mounted but are designed solely for storage of
            tools or other property.
    
            The Registrant's service bodies offer a wide selection of standard
            and optional features.  Like the Registrant's tool boxes, they can
            be installed on trucks of all major United States and foreign
            producers and are used for general, industrial and recreational
            purposes.  In general, the Registrant believes that its service
            bodies and tool boxes compete in the upper portions of their
            respective markets in terms of quality and price.  The Registrant
            also believes that it offers the largest line of tool boxes
            available from any single manufacturer.
                                       -2-
     <PAGE>
            The Registrant's standard winches have pulling capacities of 2,000
            to 30,000 pounds, are designed to be truck-mounted and also are sold
            for general and industrial purposes.  All these winches are
            available with or without automatic safety brakes and may be used
            with mechanical, hydraulic or electrical power sources.  In addition
            to these standard products, the Registrant manufactures winches for
            special applications such as mining, logging and well drilling.
    
            The Registrant's crane models may be mounted on the Registrant's
            service bodies specially designed to withstand additional stress
            when the crane is in use.  Lifting capacity of the cranes ranges up
            to 6,000 pounds depending on the model.
    
            The Registrant sells its products primarily through a nationwide
            network of distributors, although certain sales are also made
            directly to end user customers and to truck dealers.  The Registrant
            currently deals with approximately 350 active distributors of its
            service bodies, tool boxes, winches and cranes.
    
            The Registrant's only agreements with each distributor are contained
            in an authorization letter and a credit application.  The Registrant
            believes that its relations with its distributors are good and that,
            in any event, the loss of any single distributor would have no
            material impact on its operations.
    
            The Registrant believes that its most effective sales promotion and
            advertising method is a combination of product demonstration and the
            use of a strong diverse distributor network.  The Registrant's
            distributors are strategically located to provide coverage of key
            marketing areas.  The distributor network is also supported by the
            Registrant through product line literature, trade shows, cooperative
            advertising and seminars by the Registrant's sales personnel.
    
     (ii)   The Registrant continually monitors and updates its product lines.
            In 1993, the Registrant introduced a new line of aluminum tool boxes
            designed for sport and recreational use.  In 1994 and 1995, the
            Registrant concentrated on keeping up with increasing demand while
            continuing to make product improvements on an ongoing basis.
    
     (iii)  The Registrant purchases steel, welding supplies, castings, paint
            and other materials from independent suppliers.  Virtually all
            purchases are made on the basis of competitive bids. The Registrant
            utilizes a combination of foreign, national and regional suppliers.
    
                                       -3-
     <PAGE>
            All classes of supplies purchased by the Registrant are
            presently available from a number of sources.  The Registrant
            deals with a large number of suppliers.  Accordingly, the
            Registrant believes that its business is not dependent upon any
            single supplier or upon any group of suppliers.  It is possible
            that shortages of a particular type of supply could occur at
            any time in the future.  However, the Registrant has no reason
            to anticipate any such shortage.
    
     (iv)   The Registrant owns no patents that are material to its business.
    
     (v)    Sales are seasonal in nature and in most years tend to be highest
            around May and lowest around October.  This seasonality is believed
            to reflect, among other factors, model changes of truck
            manufacturers in September and October and low levels of activity in
            the construction industries in the fall and winter months.  In 1994
            and 1995, however, seasonality was less of a factor due to truck
            manufacturers being overloaded with incoming orders throughout the
            entire year.
    
     (vi)   Most of the Registrant's inventory is comprised of standard
            products. Reference is made to Note 4 to the Financial Statements
            for information as to a line of credit which is available to finance
            inventory as required.
    
     (vii)  Since a significant portion of sales are made through distributors,
            the Registrant does not necessarily know the identity of any
            particular purchaser of its products.  All statements made in the
            following paragraph are subject to this qualification.
    
            The Registrant sells to a large number of customers, and to the best
            of its knowledge, no customer accounted for as much as 10% of sales
            during the years ended December 31, 1993, 1994 and 1995.  The
            Registrant also believes that foreign or export sales, sales to
            governmental agencies and sales to the military are insignificant.
            The Registrant's products are marketed on a nationwide basis.  The
            Registrant's products are used in a variety of industries, and the
            relative importance of these industries may vary from year to year.
            The service and public utility industries were the most significant
            industries during the years ended December 31, 1993, 1994 and 1995.
    
     (viii) The Registrant's backlogs at the respective dates indicated were
            approximately as follows:  $692,000 at December 31, 1993, $1,399,000
            at December 31, 1994 and $1,004,000 at December 31, 1995.  All
            backlog at December 31, 1995 is believed to be firm and is expected
            to be shipped during the fiscal year ending December 31, 1996.
    
     (ix)   The Registrant does not do a material amount of business with the
            federal government.
    
                                       -4-
     <PAGE>
     (x)    The market for all the Registrant's products is very competitive.
            Although the Registrant's products are marketed on a nationwide
            basis, each manufacturer of otherwise competitive service bodies may
            have certain advantages in its own region because of transportation
            costs.  In addition to this factor, competition in selling service
            bodies is believed to involve such factors as product quality,
            delivery capability, product price and quality of distributors.  In
            selling tool boxes, the more important competitive factors are
            believed to be product quality, delivery capability, product prices,
            range of product line and number of distributors or other outlets.
    
            The Registrant competes in selling service bodies with a number of
            manufacturers, some of which are larger in terms of assets and
            sales.  However, the Registrant believes that no single manufacturer
            dominates the market for these products and that it can continue to
            compete successfully for its market share, particularly in its
            primary sales region.
    
            Because of lower transportation costs, competition for sales of tool
            boxes, winches and cranes is generally on a national rather than a
            regional basis.  Competition is based primarily on quality and
            price. As stated elsewhere, the Registrant offers a standard product
            line but stresses its ability to construct specialized products.
            While several competitive manufacturers of tool boxes, winches and
            cranes are larger in terms of sales and assets, and some offer
            related equipment not produced by the Registrant, the Registrant
            believes that no single manufacturer dominates the market and that
            it can continue to compete successfully for its market share.
    
     (xi)   The Registrant does not carry on research and development activities
            except in connection with product testing, development and design.
            Six employees were involved on a part-time basis in product testing,
            development and design during the years ended December 31, 1993,
            1994 and 1995.  The amount spent on such activities was less than
            $100,000 in each of these years.
    
     (xii)  The Registrant does not believe that compliance with federal, state
            and local environmental laws will adversely affect its business,
            earnings or competitive position in the long run when regulations
            are enforced uniformly across the nation.
    
     (xiii) At December 31, 1995, the Registrant employed 283 persons.  No
            employee is represented by any union, and the Registrant believes
            that its employee relations are good.
    
(d)  The Registrant's products are marketed primarily in the United States.
     Direct export sales are immaterial to the Registrant's operations.

                                       -5-
<PAGE>
ITEM 2.  PROPERTIES

     The Registrant owns its manufacturing and office facilities in Houston,
Texas and Fort Worth, Texas.  The Registrant's Houston service body and tool box
manufacturing facility occupies approximately 163,000 square feet of space in a
metal and brick building located in an office and industrial park, while its
executive and administrative offices occupy approximately 12,000 square feet in
the same building.  The Registrant's winch and crane manufacturing facility
occupies approximately 24,000 square feet of space in an adjacent metal and
concrete building constructed on the same tract of approximately 13 acres.  The
Fort Worth facility is on approximately 3.7 acres of land with metal and block
buildings totaling approximately 73,000 square feet.  The Houston facilities are
subject to mortgage liens of approximately $1,446,000.  The Registrant owns
almost all of the machinery and equipment used in its operations.


ITEM 3.  LEGAL PROCEEDINGS

     The Registrant is not a party to and its property is not subject to any
material pending legal proceedings other than ordinary routine litigation
incidental to its business.


ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

     None.


                                     PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SHAREHOLDER
         MATTERS

(a)  The Registrant's common stock, no par value per share (Common Stock), is
     traded on the National Association of Securities Dealers Automated
     Quotation System (NASDAQ) Small Cap Market under the symbol "RAKO".  The
     following table shows the high and low bid and ask prices of the Common
     Stock during the periods indicated:

                                       -6-
<PAGE>
<TABLE>
<CAPTION>
                                             Bid                 Ask
                                        High       Low      High       Low
<S>                                  <C>       <C>        <C>      <C>
Year Ended December 31, 1994:
     First Quarter                     1-3/4    1-3/16         2    1-7/16
     Second Quarter                    3-1/4         1     3-1/2     1-1/4
     Third Quarter                         3     2-1/8     3-1/4    2-3/16
     Fourth Quarter                   2-5/16         2     2-5/8     2-1/8

Year Ended December 31, 1995:
     First Quarter                    2-1/16     1-5/8    2-5/16     1-3/4
     Second Quarter                  1-13/16   1-13/16         2   1-15/16
     Third Quarter                     1-7/8     1-1/2         2     1-5/8
     Fourth Quarter                    1-3/4     1-1/8         2     1-3/8

Year Ending December 31, 1996:
     January 1996                    1-17/32    1-5/16     1-5/8     1-5/8
</TABLE>
The foregoing figures, which were obtained from NASDAQ monthly statistical
reports, do not reflect retail markups or markdowns and may not represent actual
trades.

(b)  As of February 21, 1996, the Common Stock was held by approximately 1,440
stockholders of record.

(c)  The Registrant has not paid any dividends since it became a publicly held
company.


ITEM 6.  SELECTED FINANCIAL DATA

     The following selected financial information for the Registrant for the
periods indicated must be read in conjunction with the Financial Statements in
this report and the notes thereto, which are an integral part of the Financial
Statements.

                                       -7-
<PAGE>
<TABLE>
<CAPTION>
                                   (In Thousands Except Per Share Data)

                                           Calendar Years Ended
                                               December 31,
                               1995      1994      1993      1992      1991
<S>                         <C>       <C>       <C>       <C>       <C>
Sales                       $18,682   $17,185   $14,450   $12,678   $12,695
Total assets                  9,824     9,089     8,377     7,932     7,803
Long-term debt (less
     current portion)         2,095     1,856     1,964     2,249     2,479
Net income                      825     1,142       480       209       392
Income per share                .21       .29       .12       .05       .10
</TABLE>

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
         FINANCIAL CONDITION

     Summary.  The following table sets forth for the years indicated (1)
percentages which certain items reflected in the accompanying statements of
income and in the accompanying selected financial data bear to total sales of
the Registrant and (2) the percentage increase (decrease) of such items as
compared to the indicated prior year.
<TABLE>
<CAPTION>
                                                                 Percentage
                                                                  Increase
                                                                 (Decrease)
                                 Percentage of Sales             from Prior
                                Calendar Years Ended:               Year:
                               1995      1994      1993        1995      1994
<S>                           <C>       <C>       <C>         <C>       <C>
Sales                         100.0     100.0     100.0         8.7      18.9
Cost of sales                  79.8      77.4      81.5        12.1      12.9
Selling, general, and
     admin. expenses           13.8      13.3      12.9        13.3      22.8
Interest expense                1.0       1.2       1.8        (7.8)    (17.5)
Other (income) expense, net    (1.0)     (0.5)     (0.6)      111.0       7.7
Income before income taxes      6.4       8.6       4.4       (19.6)    130.1
Income taxes                    2.0       2.0       1.1         7.3     107.9
Net income                      4.4       6.6       3.3       (27.7)    137.7
</TABLE>
                                       -8-
<PAGE>
     Results of Operations.

     Calendar Year Ended December 31, 1993.  Sales for the year ended December
31, 1993 increased 14% from the year ending December 31, 1992 due primarily to
the Registrant's intensified marketing efforts and improvement in the national
economy.  Cost of sales as a percentage of sales decreased from 83.2% to 81.5%
due to the Registrant's improvements in manufacturing efficiency.  Selling,
general and administrative expenses as a percentage of sales decreased from
13.3% in 1992 to 12.9% in 1993 due to the combined effect of increased sales
volume and management's cost control efforts.

     Calendar Year Ended December 31, 1994.  Sales for the year ended December
31, 1994 increased 18.9% from the year ending December 31, 1993 due primarily to
the Registrant's intensified marketing efforts and continued improvement in the
national economy, particularly improvement in light truck sales.  Cost of sales
as a percentage of sales decreased from 81.5% to 77.4% due to volume
efficiencies and the Registrant's continued program of upgrading manufacturing
equipment and refining production methods.  Selling, general and administrative
expenses as a percentage of sales increased from 12.9% in 1993 to 13.3% in 1994
primarily due to increases in insurance costs and payroll-related expenses.

     Calendar Year Ended December 31, 1995.  Sales for the year ended December
31, 1995 increased 8.7% from the year ending December 31, 1994 due primarily to
the Registrant's continued marketing efforts and strong national light truck
sales.  Cost of sales increased from 77.4% to 79.8% due to sharp increases in
material costs during the third and fourth quarters of 1995.  In late 1995 and
in January 1996, material costs began to decline and have since returned to
previous levels.  Selling, general and administrative expenses as a percentage
of sales increased from 13.3% in 1994 to 13.8% in 1995 primarily due to
increases in insurance costs and payroll-related expenses.  Additionally, during
1995, approximately $240,000 of office improvements and repairs were incurred of
which $105,000 was expensed.  Income tax expense for the year ended December 31,
1995 increased 7.3% from the year ending December 31, 1994 due to alternative
minimum tax credits which were fully utilized during 1994.

     Liquidity and Capital Resources.  The Registrant generated approximately
$665,000 in cash from operations during the year ended December 31, 1995.  The
Registrant plans to fund future operations from cash on hand, cash from
operations and by use of its credit facility which currently has an available
line of credit of approximately $1,568,000 based upon the applicable borrowing
base calculation. The Registrant's line of credit expires in April 1997.  The
Registrant also has an unused agreement with a bank to borrow up to $1,500,000
to finance equipment purchases.

     The Registrant has entered into an agreement with an equipment manufacturer
to purchase metal processing equipment at an approximate cost of $1,125,000.
The equipment is scheduled to be delivered and installed in June 1996.  The
purchase agreement requires the Registrant to make periodic installment into an
escrow account.  As of December 31, 1995, the Registrant has made a 10% down
payment of approximately $112,000 that is being held in the escrow account.  The
Registrant intends to use its available credit facilities to fund the remaining
90% of the purchase price as the installments become due in 1996.

                                       -9-
<PAGE>
     The Registrant presently has no other material commitments for capital
expenditures and foresees no present need to raise external funds for these or
other purposes in view of its current cash position.

     Inflation.  The Registrant's business is relatively labor intensive, and
the Registrant purchases supplies and components from third parties.
Nevertheless, the Registrant has generally been able to raise its prices
sufficiently to offset any adverse effects of inflation.  During the year ended
December 31, 1993, the Registrant increased its prices for certain tool boxes.
During the year ended December 31, 1994, the Registrant increased prices on its
cranes.  During the year ended December 31, 1995, the Registrant increased
prices on its service bodies, tool boxes and winches.  During January 1996, the
Registrant increased prices on all of its products.  The Registrant cannot
predict any possible future effects of inflation on its operations.


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The response to this item is submitted in a separate section of this
report. Reference is made to the index on page 16 preceding the Financial
Statements.


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

     None.


                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     The following table sets forth certain information concerning the directors
and executive officers of the Registrant.


     Name                Age            Position               Served As A
                                                             Director Since

Thomas C. Rawson         43      Chairman of the Board,    September 18, 1987
                                  Director and Chief
                                   Executive Officer

Catherine A. Rawson      71     Director, President and    September 18, 1987
                                  Principal Financial
                                       Officer

Pamela Y. Rawson         39            Director          September 18, 1987 (1)

Farrell G. Huber, Jr.    63            Director              July, 1983 (2)

George W. Fazakerly      54            Director            September 21, 1987

Allen F. Rhodes          71            Director            September 21, 1987

Joseph M. Scheer         69            Director              April 10, 1991

Fredrick C. Wamhoff      38        Vice President-
                                    Manufacturing
                                    Operations and
                                      Secretary

Richard F. Koenig        52        Vice President-
                                 Information Systems

     (1) Except for the period September 21, 1987 to October 17, 1989.
     (2) Except for the period September 18, 1987 to September 21, 1987.

                                      -10-
<PAGE>
     Thomas C. Rawson co-founded Rawson Industries, Inc. ("Rawson") in 1978 with
his father, the late Clare J. Rawson, his mother, Catherine A. Rawson, and his
wife, Pamela Y. Rawson.  He holds a law degree from Thomas M. Cooley School of
Law in Michigan and a Bachelor of Science Degree from Michigan State University.
Mr. Rawson was admitted to the State Bar of Texas in 1979.  Mr. Rawson served as
a Director and President of the Registrant from September 18, 1987 to October
17, 1989, when he was elected Chairman of the Board and Chief Executive Officer.

     Catherine A. Rawson co-founded Rawson in 1978. Prior to joining Rawson, she
was employed as a Test Administrator for the Michigan Civil Service Commission
and prepared and administered bookkeeping records for various family-owned
businesses. Mrs. Rawson received an Associate Arts Degree from Pierce College in
1965.  Mrs. Rawson served as Treasurer and a Director of Rawson from 1978 to
1987 and Treasurer and Vice President of Administration of the Registrant from
September 18, 1987 to October 17, 1989.  She is currently President, Principal
Financial Officer and a Director of the Registrant.

     Pamela Y. Rawson co-founded Rawson in 1978 after earning a Bachelor of
Science degree in Social Studies from Michigan State University.  She served as
Secretary and a Director of Rawson and a Director of the Registrant from
September 18, 1987 to September 21, 1987.  She was re-elected to the Board of
Directors of the Registrant on October 17, 1989.

     Farrell G. Huber, Jr. is Chairman of the Board of Directors of Houston-
Huber, Inc., an investment company.  He also served as Chairman of the Board and
Chief Executive Officer of Huber Construction Co. and Able Supply Company,
companies engaged in furnace and refractory materials manufacturing and
installation, before their sale in 1986.  Mr. Huber is also a Director of
Keystone International, Inc.

                                      -11-
<PAGE>
     George W. Fazakerly is a partner in the Dallas law firm of Vial, Hamilton,
Koch & Knox.  He specializes in corporate and securities matters and received
his Juris Doctor Degree from Southern Methodist University in 1969.  He has been
a partner with Vial, Hamilton, Koch & Knox since 1974.

     Allen F. Rhodes is currently Chairman of the Silver Fox Advisors, a
business consulting firm.  He was President of Arnco Technology, a metallurgical
research company, from 1991 to 1993, and President and Chief Executive Officer
of Anglo Energy, Ltd. from 1983 to 1986.  Mr. Rhodes is also a Director of
Keystone International, Inc.

     Joseph M. Scheer is currently a management consultant and personal
investor.  He is also a Director of Microsemi Corporation, a semiconductor
manufacturer headquartered in Santa Ana, California.  He was a Director of
Laserform Inc., a prototype parts manufacturer in Auburn Hills, Michigan from
1989 to 1994.

     Fredrick C. Wamhoff joined Rawson in 1984.  Prior thereto, Mr. Wamhoff was
in the private practice of law in Lansing, Michigan.  He attended Michigan State
University and was graduated in 1979 with a Bachelor of Arts Degree.  He
received his Juris Doctor Degree from Marquette University in 1982.  Mr. Wamhoff
has been a member of the Michigan and Wisconsin Bars since 1982 and the Texas
Bar since 1986.

     Richard F. Koenig began his career with the Registrant in 1967 and has
served the Registrant in many and various functions including Manager of
Engineering and Data Processing, and General Manager of the Registrant's winch
and crane manufacturing facilities.  Mr. Koenig has been a key member of the
Registrant's upper management team since September 17, 1987 and was elected Vice
President-Information Systems on January 18, 1994.

     Each Director holds office until the next annual meeting of Shareholders of
the Registrant and until his successor is duly elected and qualified.  Officers
of the Registrant are elected by, and serve at, the discretion of the Board of
Directors.


ITEM 11.  EXECUTIVE COMPENSATION

     The following table sets forth, in summary fashion, the compensation paid
or accrued for the last three (3) fiscal years to each of the most highly
compensated executive officers of the Registrant whose annual rate of
remuneration exceeded $100,000.
                                      -12-
<PAGE>
<TABLE>
<CAPTION>
                           SUMMARY COMPENSATION TABLE

                                               Long Term Compensation
                  Annual Compensation              Awards       Payouts
(a)           (b)     (c)      (d)     (e)      (f)       (g)     (h)     (i)
                                      Other
Name                                 Annual  Restricted                All Other
and                                  Compen-   Stock   Options/  LTIP    Compen-
Principal           Salary    Bonus  sation   Award(s)   SARs   Payouts  sation
Position<F1> Year     ($)      ($)     ($)      ($)       (#)     ($)     ($)

<S>          <C>    <C>       <C>      <C>      <C>       <C>     <C>     <C>
Thomas C.    1995   151,200   2,000     0        0         0       0       0
Rawson,      1994   148,533   2,000     0        0         0       0       0
C.E.O.       1993   135,258   1,050     0        0         0       0       0

Catherine    1995   151,500   2,000     0        0         0       0       0
A.           1994   142,913   2,000     0        0         0       0       0
Rawson,      1993   135,258   1,050     0        0         0       0       0
President
<FN>
<F1>
No other officers received compensation in excess of $100,000 during the last
three (3) fiscal years.
</FN>
</TABLE>
     The Registrant currently has no stock option plans.  During the last three
(3) fiscal years the Registrant granted no stock options or stock appreciation
rights ("SAR") to any of its employees or directors; further, during the last
three (3) fiscal years no SAR or stock options were exercised by any of the
Registrant's employees or directors.  The Registrant made no awards of long term
incentive plans to any employee or director of the Registrant in the last three
(3) fiscal years.  The Registrant has no written employment contracts with any
executive officer of the Registrant and has no compensatory plan or arrangement
with any executive officer which provides for compensation as a result of the
resignation, retirement or termination of employment of an executive officer, or
as a result of change in control of the Registrant.


Compensation of Directors

     Of the seven directors of the Registrant, four are "outside" directors or
non-employees of the Registrant.  Each outside director receives a fee of $500
for attendance at meetings of the Board of Directors.  The three "inside"
directors receive no fee for attendance at meetings of the Board of Directors.
In addition, of the four outside directors, two live outside of the Houston area
and receive reimbursement for travel expenses incurred in connection with
attendance of meetings of the Board of Directors.  The Board of Directors of the
Registrant has not formed any committees.  The following table sets forth the
amounts received by each of the four outside directors during the last fiscal
year, including travel expense reimbursement.

                                      -13-
<PAGE>
      Name                    Directors' Fees              Travel Reimbursement

Farrell G. Huber, Jr.             $2,000                      Not Applicable
George W. Fazakerly,              $2,000                           $898
Allen F. Rhodes                   $2,000                      Not Applicable
Joseph M. Scheer                  $2,000                         $1,749

     During 1995, the Registrant paid Joseph M. Scheer $6,400 for management,
marketing and financial services rendered by him for the Registrant.  Under the
terms of such arrangement Mr. Scheer bills the Registrant $100 per hour for his
services and is reimbursed for out-of-pocket expenses incurred by him in
connection with the services provided under the arrangement.  During 1995, the
out-of-pocket reimbursement paid to Mr. Scheer was $321.

     During 1995, the Registrant paid Allen F. Rhodes $1,070 for management
consulting services rendered by him for the Registrant.  Under the terms of such
arrangement Mr. Rhodes bills the Registrant $100 per hour for his services.

     Prior to 1994, Pamela Y. Rawson was a non-employee director of the
Registrant.  During 1994, Ms. Rawson became a part-time employee of the
Registrant and serves as a payroll administrator.  During 1995, the Registrant's
compensation paid to Ms. Rawson consisted of hourly wages totaling $11,857.


ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT OF THE
          REGISTRANT

     The following table shows the number and percentage of shares of Common
Stock of the Registrant that may be deemed to be beneficially owned as of
February 21, 1996, by (i) each person known by the Registrant to be the
beneficial owner of more than five percent of the outstanding shares of Common
Stock of the Registrant, (ii) each director and nominee for director of the
Registrant who owns shares of Common Stock of the Registrant and (iii) all
directors, nominees, and officers as a group.  The persons listed below have the
sole power to vote and to dispose of the shares beneficially owned by them
except as otherwise indicated below.

                                      -14-
<PAGE>
<TABLE>
<CAPTION>
                                    Shares of Common
                                   Stock Beneficially
                                      Owned As Of               Percentage of
     Name                           February 21, 1996            Class Owned
<S>                                    <C>                           <C>
Floyd A. Cailloux
P.O. Box 1952
Kerrville, TX 78028                      282,214 <F1>                 7.2

Kennedy Capital Management, Inc.
425 N. New Ballas Road
Suite 181
St. Louis, MO 63141                      251,500                      6.5

Farrell G. Huber, Jr.
2301 Central Parkway
Houston, TX 77092                          1,562                      0 <F2>

Catherine A. Rawson
2301 Central Parkway
Houston, TX 77092                      1,161,261                     60.0 <F3>

Thomas C. Rawson
2301 Central Parkway
Houston, TX 77092                      1,180,800                     60.0 <F3>

Pamela Y. Rawson
2301 Central Parkway
Houston, TX 77092                      1,180,800                     60.0 <F3>

Allen F. Rhodes
2301 Central Parkway
Houston, TX 77092                         12,197                      0 <F2>

Joseph M. Scheer
2301 Central Parkway
Houston, TX 77092                         85,000                      2.2

All directors and officers
as a group                             2,443,883                     62.6
<FN>
<F1>
Includes 273,415 shares held by entities controlled by Mr. Cailloux and
includes 8,799 shares held by a charitable remainder trust of which Mr.
Cailloux is a lifetime beneficiary.
<F2>
Represents less than 1% of the issued and outstanding shares.
<F3>
Catherine A. Rawson, Thomas C. Rawson and Pamela Y. Rawson constitute a "group"
as such term is defined under applicable regulations of the Security and
Exchange Commission.  Therefore, the share ownership percentage of the entire
group is listed by each individual's name.  In the case of Thomas C. Rawson and
Pamela Y. Rawson ownership of shares held or to be held by either such person
are assumed to be beneficially owned by such other person due to their marital
relationship.
</FN>
</TABLE>

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     None.

                                      -15-
<PAGE>
                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(a) 1.  Index to Financial Statements:
                                                                       Page
                                                                     Reference

        Report of Independent Accountants                              F-1
        Balance Sheets as of December 31, 1995 and 1994                F-2
        For the years ended December 31, 1995, 1994 and 1993, the
           Statements of Income                                        F-3
           Statements of Shareholders' Equity                          F-4
           Statements of Cash Flows                                    F-5
        Notes to Financial Statements                                  F-6

    2.  All schedules for which provision is made in the applicable accounting
        regulations of the Securities and Exchange Commission, which are not
        presented, are not required under the related instructions or are
        inapplicable, and therefore have been omitted.

    3.  The following exhibits are filed with this report:

                                                          Page Number
                                                          In This Filing
                                                          or Incorporation
        Exhibit Number and Description                    By Reference to

        (2)  Plan of Acquisition, Reorganization,
             Arrangement, Liquidation or Succession*

        (3)  Articles of Incorporation and Bylaws
             3.1  Restated Articles of Incorporation      Exhibit 3.1***

             3.2  Amended and Restated Bylaws             Exhibit 3.2***

        (4)  Instruments defining the rights of           Exhibit 4 to Koenig's
             security holders, including indentures       Registration on Form
                                                          10, as amended, under
                                                          the Securities
                                                          Exchange
                                                          Act of 1934.
        (9)  Voting trust agreement*

                                      -16-
<PAGE>
       (10)  Material Contracts
             10.1  Koenig, Inc. Profit-Sharing
                   Plan and Trust                         Exhibit 10.1**
             10.2  Koenig, Inc. 1983 Stock
                   Option Plan                            Exhibit 10.2**
             10.3  Koenig, Inc. Restricted Stock Plan     Exhibit 10.3**
             10.4  Loan Agreement dated
                   September 22, 1987                     Exhibit 10.4***
             10.5  Agreement of Sale and Purchase
                   of Houston Plant Facility with
                   conformed exhibits                     Exhibit 10.5****
             10.6  Loan Agreement dated
                   January 29, 1990                       Exhibit 10.6*****
             10.7  First Amendment to Letter Loan
                   Agreement dated March 31, 1991         Exhibit 10.7******
             10.8  Second Amendment to Letter Loan
                   Agreement dated May 21, 1991           Exhibit 10.8******
             10.9  Third Amendment to Letter Loan
                   Agreement dated March 24, 1992         Exhibit 10.9*******
             10.10 Fourth Amendment to Letter Loan
                   Agreement dated April 30, 1993         Exhibit 10.10********
             10.11 Fifth Amendment to Letter Loan
                   Agreement dated May 21, 1993           Exhibit 10.11********
             10.12 Sixth Amendment to Letter Loan
                   Agreement dated April 30, 1994         Exhibit 10.12*********
             10.13 Amended and Restated Letter Loan
                   Agreement dated April 21, 1995         Exhibit 10.13
             10.14 First Amendment to Amended and
                   Restated Letter Loan Agreement,
                   Promissory Note (Advancing Term) and
                   Amended and Restated Security
                   Agreement dated September 21, 1995     Exhibit 10.14

       (11)  Statement re: computation of
             per share earnings*
       (12)  Statement re: computation of ratios*
       (13)  Annual report to security holders*
       (18)  Letter re: change in accounting principles*
       (21)  Subsidiaries of the registrant*
       (22)  Published report regarding
             matters submitted to vote
             of security holders*
       (23)  Consents of experts and counsel*
       (24)  Power of attorney*
       (27)  Financial Data Schedule                      Exhibit 27
       (28)  Information from reports furnished
             to state insurance regulatory
             authorities*
       (99)  Additional Exhibits*

                                      -17-
<PAGE>
*            Inapplicable.
**           Included in the Registrant's Form 10-K for the year ended September
               30, 1983.
***          Included in the Registrant's Form 10-K for the year ended September
               30, 1987.
****         Included in the Registrant's Form 10-K for the year ended September
               30, 1988.
*****        Included in the Registrant's Form 10-K for the year ended December
               31, 1990.
******       Included in the Registrant's Form 10-K for the year ended December
               31, 1991.
*******      Included in the Registrant's Form 10-K for the year ended December
               31, 1992.
********     Included in the Registrant's Form 10-K for the year ended December
               31, 1993.
*********    Included in the Registrant's Form 10-K for the year ended December
               31, 1994.


(b)  Reports on Form 8-K.

     No reports were filed on Form 8-K during the last quarter of the period
     covered by this report.

                                      -18-
<PAGE>
                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized, in
Houston, Texas, on the 19th day of March 1996.

                                         Rawson-Koenig, Inc.


                                         By:/s/ Thomas C. Rawson
                                            --------------------
                                            Thomas C. Rawson

     Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed by the following persons on behalf of the
Registrant and in the capacities indicated and on the date indicated:

    Signature                         Title                       Date


/s/ Thomas C. Rawson              Chairman of the            March 19, 1996
-------------------------         Board, Director and
Thomas C. Rawson                  Chief Executive Officer

/s/ Catherine A. Rawson           Director, President        March 21, 1996
-------------------------         and Principal Financial
Catherine A. Rawson               Officer

/s/ Leslie T. Horvath             Controller                 March 19, 1996
-------------------------
Leslie T. Horvath

/s/ George W. Fazakerly           Director                   March 25, 1996
-------------------------
George W. Fazakerly

/s/ Farrell G. Huber, Jr.         Director                   March 20, 1996
-------------------------
Farrell G. Huber, Jr.

/s/ Pamela Y. Rawson              Director                   March 21, 1996
-------------------------
Pamela Y. Rawson

/s/ Allen F. Rhodes               Director                   March 21, 1996
-------------------------
Allen F. Rhodes

/s/ Joseph M. Scheer              Director                   March 19, 1996
-------------------------
Joseph M. Scheer

                                      -19-
<PAGE>



                              FINANCIAL STATEMENTS
<PAGE>

                       REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders
Rawson-Koenig, Inc.

  We have audited the accompanying balance sheets of Rawson-Koenig, Inc. as of
December 31, 1995 and 1994, and the related statements of income, shareholders'
equity, and cash flows for the years ended December 31, 1995, 1994 and 1993.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

  We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform our audits to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

  In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Rawson-Koenig, Inc. as of
December 31, 1995 and 1994, and the results of its operations and its cash
flows for the years ended December 31, 1995, 1994 and 1993, in conformity with
generally accepted accounting principles.

                                          COOPERS & LYBRAND L.L.P.
Houston, Texas
February 2, 1996


                                      F-1
<PAGE>

                              RAWSON-KOENIG, INC.

                                 BALANCE SHEETS
                           DECEMBER 31, 1995 AND 1994

<TABLE>
<CAPTION>
                                                             1995       1994
                                                          ---------- ----------
<S>                                                       <C>        <C>
                         ASSETS
Current assets:
  Cash and cash equivalents.............................. $  315,412 $  193,026
  Accounts receivable, trade (net of allowance for
   doubtful accounts of $40,000 in 1995 and 1994)........  1,713,511  1,608,555
  Inventories............................................  3,615,265  3,565,329
  Prepayments and other..................................    173,960    164,232
                                                          ---------- ----------
    Total current assets.................................  5,818,148  5,531,142
Property, plant and equipment, net.......................  3,893,266  3,557,452
Other assets.............................................    112,412
                                                          ---------- ----------
      Total assets....................................... $9,823,826 $9,088,594
                                                          ========== ==========
           LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Current portion of long-term debt...................... $  215,253 $  203,626
  Current portion of capital lease obligation............     27,025     29,672
  Accounts payable.......................................    437,681    650,878
  Accrued expenses.......................................    884,326    837,151
  Income taxes payable...................................     61,000    233,459
                                                          ---------- ----------
    Total current liabilities............................  1,625,285  1,954,786
Long-term debt, less current portion.....................  2,095,124  1,828,859
Capital lease obligation, less current portion...........                27,025
                                                          ---------- ----------
    Total liabilities....................................  3,720,409  3,810,670
                                                          ---------- ----------
Commitments and contingencies (Note 7)
Shareholders' equity:
  Preferred stock, $10 par value, 1,000,000 shares
   authorized, none issued
  Common stock, no par, $1,000 stated value, 5,000,000
   shares authorized, 3,901,190 shares issued and
   outstanding at December 31, 1995 and 1994.............      1,000      1,000
  Additional paid-in capital.............................  4,529,120  4,529,120
  Retained earnings......................................  1,573,297    747,804
                                                          ---------- ----------
    Total shareholders' equity...........................  6,103,417  5,277,924
                                                          ---------- ----------
      Total liabilities and shareholders' equity......... $9,823,826 $9,088,594
                                                          ========== ==========
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                      F-2
<PAGE>

                              RAWSON-KOENIG, INC.

                              STATEMENTS OF INCOME
              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<TABLE>
<CAPTION>
                                            1995         1994         1993
                                         -----------  -----------  -----------
<S>                                      <C>          <C>          <C>
Sales................................... $18,682,075  $17,184,557  $14,449,688
Cost of sales...........................  14,903,247   13,300,320   11,777,024
                                         -----------  -----------  -----------
    Gross profit........................   3,778,828    3,884,237    2,672,664
Selling, general and administrative
expenses................................   2,585,773    2,281,899    1,857,857
                                         -----------  -----------  -----------
    Income from operations..............   1,193,055    1,602,338      814,807
Other income (expense):
  Interest expense......................    (194,436)    (210,891)    (255,649)
  Other, net............................     193,874       92,330       85,760
                                         -----------  -----------  -----------
    Income before provision for income
     taxes..............................   1,192,493    1,483,777      644,918
                                         -----------  -----------  -----------
Provision for income taxes:
  Federal...............................     306,000      267,000      118,500
  State.................................      61,000       75,000       46,000
                                         -----------  -----------  -----------
                                             367,000      342,000      164,500
                                         -----------  -----------  -----------
    Net income.......................... $   825,493  $ 1,141,777  $   480,418
                                         ===========  ===========  ===========
    Net income per share................ $       .21  $       .29  $       .12
                                         ===========  ===========  ===========
Average shares outstanding..............   3,901,190    3,901,190    3,901,190
                                         ===========  ===========  ===========
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                      F-3
<PAGE>

                              RAWSON-KOENIG, INC.

                       STATEMENTS OF SHAREHOLDERS' EQUITY
              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<TABLE>
<CAPTION>
                                                       RETAINED
                           COMMON STOCK   ADDITIONAL   EARNINGS       TOTAL
                         ----------------  PAID-IN   (ACCUMULATED SHAREHOLDERS'
                          SHARES   AMOUNT  CAPITAL     DEFICIT)      EQUITY
                         --------- ------ ---------- ------------ -------------
<S>                      <C>       <C>    <C>        <C>          <C>
Balance, December 31,
 1992................... 3,901,190 $1,000 $4,529,120  $ (874,391)  $3,655,729
Net income..............                                 480,418      480,418
                         --------- ------ ----------  ----------   ----------
Balance, December 31,
 1993................... 3,901,190  1,000  4,529,120    (393,973)   4,136,147
Net income..............                               1,141,777    1,141,777
                         --------- ------ ----------  ----------   ----------
Balance, December 31,
 1994................... 3,901,190  1,000  4,529,120     747,804    5,277,924
Net income..............                                 825,493      825,493
                         --------- ------ ----------  ----------   ----------
Balance, December 31,
 1995................... 3,901,190 $1,000 $4,529,120  $1,573,297   $6,103,417
                         ========= ====== ==========  ==========   ==========
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                      F-4
<PAGE>

                              RAWSON-KOENIG, INC.

                            STATEMENTS OF CASH FLOWS
              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<TABLE>
<CAPTION>
                                               1995         1994       1993
                                            -----------  ----------  ---------
<S>                                         <C>          <C>         <C>
Cash flows from operating activities:
 Net income................................ $   825,493  $1,141,777  $ 480,418
                                            -----------  ----------  ---------
 Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization............     470,156     454,292    448,032
  Loss (gain) on sale of property, plant
   and equipment...........................     (15,500)     10,480     (2,033)
  Change in assets and liabilities:
   Increase in accounts receivable.........    (104,956)   (363,771)  (209,384)
   Increase in inventories.................     (49,936)   (498,925)  (263,166)
   Increase in prepayments and other.......      (9,728)    (53,083)    (4,927)
   Increase in other assets................    (112,412)
   Increase (decrease) in accounts payable.    (213,197)    116,901     62,240
   Increase in accrued expenses............      47,175     132,528    207,127
   Increase (decrease) in income taxes
    payable................................    (172,459)    159,774     50,633
                                            -----------  ----------  ---------
    Total adjustments......................    (160,857)    (41,804)   288,522
                                            -----------  ----------  ---------
    Net cash provided by operating
     activities............................     664,636   1,099,973    768,940
                                            -----------  ----------  ---------
Cash flows from investing activities:
  Purchase of property, plant, and
   equipment...............................    (805,970)   (236,915)  (370,767)
  Proceeds from sale of property, plant,
   and equipment...........................      15,500       1,955      3,297
                                            -----------  ----------  ---------
    Net cash used by investing activities..    (790,470)   (234,960)  (367,470)
                                            -----------  ----------  ---------
Cash flows from financing activities:
  Proceeds from note payable...............   1,544,605     250,000    300,000
  Payments on note payable.................  (1,063,000)   (800,000)  (400,000)
  Payments on long-term debt...............    (203,713)   (262,007)  (231,626)
  Payments on capital lease obligation.....     (29,672)    (26,926)   (24,434)
                                            -----------  ----------  ---------
    Net cash provided (used) by financing
     activities............................     248,220    (838,933)  (356,060)
                                            -----------  ----------  ---------
Net increase in cash and cash equivalents..     122,386      26,080     45,410
Cash and cash equivalents at beginning of
 year......................................     193,026     166,946    121,536
                                            -----------  ----------  ---------
Cash and cash equivalents at end of year... $   315,412  $  193,026  $ 166,946
                                            ===========  ==========  =========
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                      F-5
<PAGE>

                              RAWSON-KOENIG, INC.

                         NOTES TO FINANCIAL STATEMENTS

1. NATURE OF ORGANIZATION:

  Rawson-Koenig, Inc. (the "Company"), a Texas corporation, designs,
manufactures, and markets certain equipment for light trucks. Its chief
products are truck tool boxes, truck service bodies, winches and truck-mounted
cranes.

  The Company sells its products to customers in the truck equipment industry
located throughout the United States. The Company performs ongoing credit
evaluations of its customers and generally does not require collateral. The
Company maintains reserves for potential credit losses and such losses have
been within management's expectations.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

 Net Income Per Share

  Net income per share is computed on the basis of the weighted average number
of shares of common stock outstanding during the year.

 Cash and Cash Equivalents

  For purposes of the statement of cash flows, the Company considers any highly
liquid debt instruments purchased with an original maturity date of three
months or less to be cash equivalents.

  The Company maintains its cash in bank deposit accounts which, at times, may
exceed federally insured limits. The Company has not experienced any losses in
such accounts.

 Inventories

  Inventories are valued at the lower of cost or market. Cost, which includes
material, labor and manufacturing overhead, is determined by the first-in,
first-out (FIFO) method and, at December 31, 1995 and 1994, consisted of the
following:
<TABLE>
<CAPTION>
                                                              1995       1994
                                                           ---------- ----------
      <S>                                                  <C>        <C>
      Raw materials....................................... $1,262,869 $1,525,930
      Work in process.....................................  1,609,002  1,264,910
      Finished goods......................................    743,394    774,489
                                                           ---------- ----------
                                                           $3,615,265 $3,565,329
                                                           ========== ==========
</TABLE>

 Tooling Costs

  The costs of constructing tools and dies for use in manufacturing are
capitalized and depreciated over four years using the straight-line method.
These costs are included in machinery and equipment.

 Property, Plant and Equipment

  Property, plant and equipment are recorded at cost and include improvements
that significantly add to productive capacity or extend useful lives. Costs of
maintenance and repairs are charged to expense. Upon retirement or disposal of
assets, the cost and related accumulated depreciation are removed from the
accounts and the gain or loss, if any, is reflected in operations.

                                      F-6
<PAGE>

                              RAWSON-KOENIG, INC.

                   NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

  Depreciation is computed using the straight-line method over the estimated
useful lives of the assets. Depreciation expense for the years ended December
31, 1995, 1994 and 1993, amounted to $470,156, $454,292 and $444,493,
respectively.

  Property, plant and equipment at December 31, 1995 and 1994, consisted of the
following:

<TABLE>
<CAPTION>
                                                          1995         1994
                                                       -----------  -----------
      <S>                                              <C>          <C>
      Land............................................ $   680,000  $   575,000
      Buildings.......................................   3,014,778    2,730,149
      Machinery and equipment.........................   4,792,240    4,429,980
      Furniture and fixtures..........................     385,703      334,480
      Vehicles........................................     110,974      173,531
      Machinery and equipment under capital lease.....     130,230      130,230
                                                       -----------  -----------
                                                         9,113,925    8,373,370
      Accumulated depreciation and amortization.......  (5,220,659)  (4,815,918)
                                                       -----------  -----------
                                                       $ 3,893,266  $ 3,557,452
                                                       ===========  ===========
</TABLE>

  Included in accumulated depreciation and amortization at December 31, 1995
and 1994, is $72,102 and $54,799, respectively, of accumulated amortization on
machinery and equipment acquired under a capital lease agreement.

 Income Taxes

  Income taxes are computed under the provisions of the Financial Accounting
Standards Board Statement No. 109, "Accounting for Income Taxes" ("SFAS 109").
Under SFAS 109, deferred tax assets and liabilities are recognized for the
future tax consequences attributable to the differences between the financial
statement carrying value of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities are measured by using
enacted tax rates that are applicable to the future years in which deferred tax
assets or liabilities are expected to be realized or settled. Under SFAS 109,
the effect of a change in tax rates on deferred tax assets and liabilities is
recognized in net earnings in the period in which the tax rate change was
enacted. The Company establishes a valuation allowance when it is more likely
than not that a deferred tax asset will not be recovered.

 Management Estimates

  The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reported period. Actual results could differ from those estimates.

 Reclassifications

  Certain 1993 amounts have been reclassified to conform with the December 31,
1995 and 1994 presentations. These reclassifications had no effect on total
assets, total liabilities, total shareholders' equity, sales or net income.

3. ACCRUED EXPENSES:

  Accrued expenses at December 31, 1995 and 1994, include $400,000 for
potential claims against the Company by its employees arising from injuries
incurred in the normal course of business. During 1993, the Company accrued
$100,000 for potential claims which were charged to cost of sales. Actual
claims for medical expenses and lost time paid during the years ended December
31, 1995, 1994 and 1993 were $1,085, $7,570 and $44,302, respectively. In
addition, during 1994 and 1993 the Company had stop-loss insurance for any
individual claim in excess of $250,000. Effective May 1, 1994, the Company was
fully insured under standard workers' compensation insurance for claims
incurred after that date.

                                      F-7
<PAGE>

                              RAWSON-KOENIG, INC.

                   NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

4. LONG-TERM DEBT:

  Long-term debt at December 31, 1995 and 1994, consisted of the following:

<TABLE>
<CAPTION>
                                                           1995        1994
                                                        ----------  ----------
      <S>                                               <C>         <C>
      Revolving line of credit in the amount of
       $2,200,000 with a bank, which matures April 30,
       1997. Interest is payable monthly at the bank's
       prime rate (8.5% at December 31, 1995).
       Borrowings under the agreement are restricted
       to certain percentages of accounts receivable
       and inventories................................  $  631,605  $  150,000
      Real estate loan payable to a bank, due in
       monthly payments of $22,047, including interest
       at 8.5% per year, with the unpaid balance due
       May 2000.......................................   1,445,618   1,579,370
      Installment loan payable to a bank, due in
       monthly payments of $5,830, plus interest at
       the bank's prime rate (8.5% at December 31,
       1995), with the unpaid balance due April 1999..     233,154     303,115
                                                        ----------  ----------
                                                         2,310,377   2,032,485
      Current portion of long-term debt...............    (215,253)   (203,626)
                                                        ----------  ----------
      Long-term portion...............................  $2,095,124  $1,828,859
                                                        ==========  ==========
</TABLE>

  During the period January 1, 1994 through April 30, 1994, the Company's
short-term borrowings under the line of credit averaged $704,167, with a
weighted average interest rate of 6.63%. Effective April 30, 1994, the line of
credit was reclassified to long-term as the maturity date was extended to April
1996.

  Effective April 21, 1995, the Company amended and restated its loan agreement
with its primary lender. The restated agreement extended the maturity date of
the line of credit to April 30, 1997, and reduced the interest rate on amounts
outstanding under the line of credit to the bank's prime rate of interest. The
restated agreement also lowered the rate of interest on the Company's
installment loan to the bank's prime rate.

  During 1994, the Company entered into an advancing term equipment loan
agreement with a bank which provided for loan advances for equipment purchases
of up to $500,000 through April 30, 1995. Effective September 21, 1995, the
agreement was amended to allow the Company to borrow up to $1,500,000 to
finance equipment purchases through August 31, 1996. Any borrowings outstanding
under the agreement as of August 31, 1996, will be converted to a five year
term loan that will be due in sixty equal monthly principal payments beginning
September 30, 1996 plus interest at the bank's prime rate. As of December 31,
1995, there were no amounts outstanding under this facility.

  The line of credit agreement and other bank debt contain various restrictive
covenants which include, among other things, maintenance of a minimum tangible
net worth and minimum working capital, restrictions on property, plant and
equipment additions and additional indebtedness, and requirements to maintain
certain financial ratios. All loans from the bank are collateralized by
accounts receivable, inventories, equipment and Houston real estate.

                                      F-8
<PAGE>

                              RAWSON-KOENIG, INC.

                   NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

  Future maturities of long-term debt are as follows:

<TABLE>
<CAPTION>
      YEAR ENDING DECEMBER 31,
      ------------------------
      <S>                                                             <C>
        1996......................................................... $  215,253
        1997.........................................................    860,244
        1998.........................................................    242,867
        1999.........................................................    211,686
        2000.........................................................    780,327
                                                                      ----------
                                                                      $2,310,377
                                                                      ==========
</TABLE>

  Cash paid for interest was $194,578, $211,372 and $253,879 for the years
ended December 31, 1995, 1994 and 1993, respectively.

5. INCOME TAXES:

  The composition of deferred tax assets and liabilities and the related tax
effects at December 31, 1995 and 1994, was as follows:

<TABLE>
<CAPTION>
                                            1995                  1994
                                    --------------------- ---------------------
                                     CURRENT   NONCURRENT  CURRENT   NONCURRENT
                                    ---------  ---------- ---------  ----------
<S>                                 <C>        <C>        <C>        <C>
Deferred tax assets:
  Tax assets which have been
   expensed for book purposes...... $  29,703             $  28,043
  Accrued expenses deductible when
   paid for tax....................   148,000               144,500
  Net operating loss carryforwards.    62,335   $176,954     62,335  $ 239,289
  Investment tax credit
   carryforwards...................               15,000     15,000
                                    ---------   --------  ---------  ---------
    Total deferred tax assets......   240,038    191,954    249,878    239,289
Deferred tax liabilities:
  Property, plant and equipment ba-
   sis.............................              146,546               124,812
                                    ---------   --------  ---------  ---------
Net deferred tax assets before
valuation allowance................   240,038     45,408    249,878    114,477
Valuation allowance................  (240,038)   (45,408)  (249,878)  (114,477)
                                    ---------   --------  ---------  ---------
    Net deferred tax assets........ $     -     $    -    $     -    $     -
                                    =========   ========  =========  =========
</TABLE>

  Changes during 1995, 1994 and 1993 in the valuation allowance account
applicable to net deferred tax assets were as follows:
<TABLE>
<CAPTION>
                                                  1995       1994       1993
                                                ---------  ---------  ---------
<S>                                             <C>        <C>        <C>
Beginning balance.............................   $364,355  $ 655,976  $ 586,286
Increase (decrease) due to change in assets
 expensed for book purposes...................      1,660    (85,226)
Increase due to change in accrued expenses
 deductible when paid for tax.................      3,500      7,408     34,430
Increase (decrease) due to change in property,
 plant and equipment basis....................    (21,734)    (1,247)   145,424
Increase (decrease) due to change in
 alternative minimum tax credit carryforwards.              (125,500)   118,500
Decrease due to use of net operating loss
carryforwards.................................    (62,335)   (87,056)  (228,664)
                                                ---------  ---------  ---------
                                                $ 285,446  $ 364,355  $ 655,976
                                                =========  =========  =========
</TABLE>

                                      F-9
<PAGE>

                              RAWSON-KOENIG, INC.

                   NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

  The differences between the federal income tax provision and the amount that
would result if the federal statutory rate of 34% were applied to pretax
financial income for 1995, 1994 and 1993 were as follows:

<TABLE>
<CAPTION>
                               1995              1994               1993
                         ----------------- ------------------ ------------------
                          AMOUNT   PERCENT  AMOUNT    PERCENT  AMOUNT    PERCENT
                         --------  ------- ---------  ------- ---------  -------
<S>                      <C>       <C>     <C>        <C>     <C>        <C>
Federal income tax
 provision at the
 statutory rate......... $405,448   34.0%  $ 504,484   34.0%  $ 219,272    34.0%
Utilization of net
 operating loss
 carryforwards..........  (62,335)  (5.2)    (87,056)  (5.9)   (228,664)  (35.5)
Alternative minimum tax.                                        118,500    18.4
Utilization of
 alternative minimum tax
 credit carryforwards...   (4,013)  (0.4)   (125,500)  (8.4)
State income tax, net of
 federal benefit........   40,260    3.4      49,500    3.3      30,360     4.7
Change in valuation
 allowance, net of
 alternative minimum tax
 and utilization of net
 operating loss and
 alternative minimum tax
 credit carryforwards...  (16,574)  (1.4)      3,092    0.2      23,711     3.7
Other...................    4,214    0.4      (2,520)  (0.2)      1,321     0.2
                         --------   ----   ---------   ----   ---------   -----
                         $367,000   30.8%  $ 342,000   23.0%  $ 164,500    25.5%
                         ========   ====   =========   ====   =========   =====
</TABLE>

  At December 31, 1995, the Company had approximate tax net operating loss and
tax credit carryforwards available to offset future taxable income as follows:

<TABLE>
<CAPTION>
                                            NET OPERATING LOSS
                                               CARRYFORWARDS
                                           ---------------------
                                                     ALTERNATIVE
                                              TAX    MINIMUM TAX  INVESTMENT
                                           REPORTING  REPORTING   TAX CREDIT
   EXPIRATION YEAR ENDING DECEMBER 31,     PURPOSES   PURPOSES   CARRYFORWARDS
   -----------------------------------     --------- ----------- -------------
   <S>                                     <C>       <C>         <C>
   1998...................................                          $ 6,000
   1999...................................                            9,000
   2001................................... $530,000   $530,000
   2002...................................   58,000     58,000
   2003...................................   58,000     58,000
   2004...................................   58,000     58,000
                                           --------   --------      -------
                                           $704,000   $704,000      $15,000
                                           ========   ========      =======
</TABLE>

  Utilization of net operating loss carryforwards is limited under the
alternative minimum tax rules. Additionally, special limitations exist under
the tax law which may restrict the utilization of the regular tax and
alternative minimum tax net operating loss carryforwards.

  Pursuant to the Tax Reform Act of 1986, unexpired investment tax credit
carryforwards have been reduced by 35%.

  Cash paid for income taxes was $575,773, $182,226 and $113,867 for the years
ended December 31, 1995, 1994 and 1993, respectively.

                                      F-10
<PAGE>

                              RAWSON-KOENIG, INC.

                   NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

6. RELATED PARTY TRANSACTIONS:

  During 1995 and 1994, the Company paid $7,470 and $5,500, respectively, to
directors for consulting fees. In addition, the Company made payments for legal
services provided by the law firm of a director in the amount of $49,217,
$30,990 and $49,624 for the years ended December 31, 1995, 1994 and 1993,
respectively. Accrued amounts payable to this law firm at December 31, 1995 and
1994 were $29,079 and $25,000, respectively.

7. COMMITMENTS AND CONTINGENCIES:

  The Company is engaged in various claims and litigation arising from its
operations. In the opinion of management, uninsured losses, if any, resulting
from these matters will not have a significant effect upon the financial
position or results of operations of the Company.

  The Company has entered into an agreement with an equipment manufacturer to
purchase metal processing equipment at an approximate cost of $1,125,000. The
equipment is scheduled to be delivered and installed in June 1996. The purchase
agreement requires the Company to make installment payments into an escrow
account as the machine is being built. An escrow payment of $112,412 made in
October 1995 is included in the balance sheet as other assets at December 31,
1995. The Company made an escrow payment of $112,412 in January 1996 and
estimates that an escrow payment of $787,500 will be due in June 1996. The
escrowed amounts will transfer to the manufacturer after the machine is
installed. A final payment of approximately $112,500 is due to the manufacturer
after the machine is fully operational.

                                      F-11