<TABLE>
                    ENGINEERING MEASUREMENTS COMPANY
                             BALANCE SHEETS
                                                  
                                 ASSETS
                                                  
                                                       April 30,
                                                   1997         1996
<S>                                            <C>          <C>
Current assets:                                      
  Cash and cash equivalents                      $547,837     $532,721
  Accounts receivable, net of allowance              
   for doubtful accounts and allowance for 
   sales returns of $61,104 April 30, 1997 
   and $101,979 at  April 30, 1996              1,557,566    1,313,033
  Short-term investments                          904,724      708,042
  Inventories                                   1,256,597    1,574,547
  Prepaid expenses                                 23,845       75,892
  Income taxes receivable                         160,848         --
  Other receivables                                62,602       50,141
  Deferred income taxes                           224,342      380,969
                                                ---------    ---------
Total current assets                            4,738,361    4,635,345
                                                ---------    ---------
Property and equipment, at cost:                     
  Land                                            568,940      568,940
  Building & improvements                       1,619,595    1,627,634
  Vehicles                                         22,196       16,791
  Machinery and equipment                       3,106,342    2,741,535
  Office furniture and fixtures                   950,271      990,787
                                                ---------    ---------
                                                6,267,344    5,945,687
  Less accumulated depreciation                (3,981,412)  (4,032,724)
                                                ---------    ---------
  Net property and equipment                    2,285,932    1,912,963
                                                ---------    ---------
  Other                                           109,335       90,237
  Investment in common stock of Marcum               
    Natural Gas Services, Inc.                          0      197,312
                                                ---------    ---------
  Total other assets                              109,335      287,549
                                                ---------    ---------
TOTAL ASSETS:                                  $7,133,628   $6,835,857
                                               ==========   ==========
</TABLE>    
    The accompanying notes are an integral part of these statements.
                                Page 15 of 39
<PAGE>
<TABLE>
                     ENGINEERING MEASUREMENTS COMPANY
                        BALANCE SHEETS - CONTINUED
                                                  
                   LIABILITIES AND STOCKHOLDERS' EQUITY
                                                  
                                                           April 30,
                                                       1997        1996
<S>                                               <C>           <C>
Current liabilities:                               
  Current portion of long-term debt                  $418,382     $137,558
  Accounts payable                                    612,538      462,332
  Accrued liabilities                                 515,848      593,524
                                                    ---------    ---------
         Total current liabilities                  1,546,768    1,193,414
                                                    ---------    ---------
Long-term liabilities:                             
  Loans from stockholder less current maturities            0      418,382
  Deferred income taxes                               188,100      183,100
                                                    ---------    ---------
         Total long-term liabilities                  188,100      601,482
                                                    ---------    ---------
Stockholders' equity:                              
  Common stock, $.01 par value;                    
    5,000,000 shares authorized;                   
    2,988,452 shares issued at April 30, 1997,
    2,943,452 shares issued at April 30, 1996,
    2,798,052 shares outstanding at April 30, 1997,
    2,753,052 shares outstanding at April 30, 1996     29,885       29,435
  Capital in excess of par value                    2,047,877    1,988,327
  Unrealized holding losses, net of taxes             (30,409)     (56,416)
  Retained earnings                                 3,981,106    3,709,314
  Treasury stock at cost; 190,400 shares at
    April 30, 1997 and April 30, 1996                (629,699)    (629,699)
                                                    ---------    ---------
         Total stockholders' equity                 5,398,760    5,040,961
                                                    ---------    ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY:        $7,133,628   $6,835,857
                                                   ==========   ==========
</TABLE>     
     The accompanying notes are an integral part of these statements.
                                Page 16 of 39
<PAGE>
<TABLE>
                  ENGINEERING MEASUREMENTS COMPANY
                    STATEMENTS OF OPERATIONS

                                              Year Ended April 30,
                                               1997          1996

<S>                                        <C>            <C>
Sales                                       $9,910,047     $8,665,808
Cost of sales                                5,626,944      4,852,125
                                            ----------     ----------
Gross margin on sales                        4,283,103      3,813,683
                                            ----------     ----------
Operating expenses:
  Selling                                    2,404,919      2,040,468
  General and administrative                   852,130        860,540
  Research and development                     620,931        427,032
                                            ----------     ----------
Total operating expenses                     3,877,980      3,328,040
                                            ----------     ----------
Income from operations                         405,123        485,643
                                            ----------     ----------
Other income/(expense):
  Gain/(loss) on sale of stock                 (79,865)       34,524
  Interest expense                             (39,246)       (56,185)
  Royalty and other income                     169,974        141,771
                                            ----------     ----------
Total other income                              50,863        120,110

Income from operations before income taxes     455,986        605,753

Income tax provision                           184,194        205,704
                                            ----------     ----------
Net income                                    $271,792       $400,049
                                            ==========     ==========

Net earnings per share                           $0.10          $0.15

Net earnings per share on a fully     
diluted basis                                    $0.09          $0.13
                                                 =====          =====
Weighted average number of
  shares outstanding                         2,774,719      2,741,385
                                             =========      =========
</TABLE>     
     The accompanying notes are an integral part of these statements.
                                Page 17 of 39
<PAGE>
<TABLE>
                                    ENGINEERING MEASUREMENTS COMPANY
                              STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
<CAPTION>
                                                     Capital in   Unrealized
                                Common Stock         excess of     Holding     Retained   Treasury 
                             Shares      Par Value   Par value      Losses     Earnings     Stock
<S>                         <C>           <C>        <C>         <C>        <C>          <C>
Balance at May 1, 1995      2,923,452     $29,235    $1,956,927  $(18,555)  $3,309,265   $(629,699)
                         
 Net income                                                                    400,049
 Stock Options       
  Exercised                    20,000         200        31,400    
Unrealized holding losses,                                       
  net of tax                                                      (37,861)
                            ---------     -------    ----------  ---------   ---------    ---------
Balance at April 30, 1996   2,943,452      29,435     1,988,327   (56,416)   3,709,314    (629,699)

 Net income                                                                    271,792
 Stock Options               
  Exercised                    45,000         450        59,550   
 Unrealized holding gains,                                        
 net of tax                                                        26,007
                            ---------     -------    ----------  ---------   ---------    --------- 

Balance at April 30, 1997   2,988,452     $29,885    $2,047,877  $(30,409)  $3,981,106   $(629,699)
                            =========     =======    ==========  =========  ==========   ==========
</TABLE>                 
              The accompanying notes are an integral part of these statements.
                                Page 18 of 39
<PAGE>
<TABLE>
                     ENGINEERING MEASUREMENTS COMPANY
                         STATEMENTS OF CASH FLOWS
<CAPTION>
INCREASE/(DECREASE) IN CASH
                                                      Year Ended April 30,
Cash flows from operating activities:                1997             1996
<S>                                               <C>              <C>
  Net income                                        $271,792         $400,049
  Adjustments to reconcile net income to
   net cash provided by operating activities--     
  Depreciation and amortization                      348,739          311,955
  Deferred tax provision/(benefit)                   145,000           96,306
  Provision for doubtful accounts                    (40,875)         (81,933)
  (Gain)/Loss on sales of investments                 79,865          (34,524)
  Gain on disposal of assets                            (446)               -
  Changes in assets and liabilities-
    Receivables                                     (216,119)          58,260
    Inventories                                      317,950          (95,163)
    Income taxes receivable and prepaid expenses    (108,801)         (41,596)
    Accounts payable and accrued liabilities          72,530          (30,571)
                                                    --------         --------
Net cash provided by operating activities            869,635          582,783
                                                    --------         --------
                                          
Cash flows from investing activities:
  Capital expenditures, net                         (705,028)        (305,311)
  Expenditures for intangible assets                 (38,129)         (36,684)
  Investment purchases                            (1,365,254)        (236,721)
  Proceeds from sale of investments                1,328,652          405,497
  Proceeds from sale of fixed assets                   2,798                -
                                                  ----------         --------
Net cash provided by/(used) in                                   
investing activities                               (776,961)        (173,219)
                                                    --------         --------
Cash flows from financing activities:
  Payments of long and short term debt              (126,020)        (203,797)
  Proceeds from exercise of stock options             60,000           31,600
  Principal payment under capital lease         
   obligations                                       (11,538)         (16,829)  
                                                    --------         --------
Net cash used in financing activities                (77,558)        (189,026)
                                                    --------         --------
Net increase/(decrease) in cash and cash    
 equivalents                                          15,116          220,538 
Cash and cash equivalents at beginning of 
 period                                              532,721          312,183 
                                                    --------         --------
Cash and cash equivalents at end of period          $547,837         $532,721
                                                    ========         ========
Supplemental disclosure of cash flow information:
  Cash paid during period for--
    Interest                                         $39,848          $56,185
    Income taxes                                     347,495           24,084
</TABLE>      
      The accompanying notes are an integral part of these statements.
                                Page 19 of 39
<PAGE>