<PAGE>


                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                    FORM 10-K/A
(Mark One)

     [x]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

          For the Fiscal Year ended October 31, 2001

                                      or


     [_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

          For the transition period from _______________ to _________________


                        Commission File No.  333-60247
                                             ---------


                     COYNE INTERNATIONAL ENTERPRISES CORP.
                    BLUE RIDGE TEXTILE MANUFACTURING, INC.
                           OHIO GARMENT RENTAL, INC.
--------------------------------------------------------------------------------
         (Exact name of Registrants as specified in their respective charters)


            New York                                    16-6040758
            Georgia                                     58-2018333
             Ohio                                       34-1261376
------------------------------------        -----------------------------------
(State or Other Jurisdiction of              (IRS Employer Identification No.)
 Incorporation or Organization)


140 Cortland Avenue, Syracuse, New York                    13221
----------------------------------------     ----------------------------------
(Address of Principal Executive Offices)                 (Zip Code)



     Registrant's Telephone Number, Including Area Code:          (315) 475-1626
                                                                  --------------

     Securities Registered Pursuant to Section 12(b) of the Act:  NONE
                                                                  ----

     Securities Registered Pursuant to Section 12(g) of the Act:  NONE
                                                                  ----

     Indicate by check mark whether the registrant (i) 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 (ii) 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 definitive proxy or information statements
incorporated by  reference in Part III of this Form 10-K or any amendment to
this Form 10-K. :
YES  X    NO

<PAGE>

The Annual Report on Form 10-K for the year ended October 31, 2001, as filed on
February 11, 2002, of Coyne International Enterprise Corp., Blue Ridge Textile
Manufacturing, Inc. and Ohio Garment Rented, Inc., is hereby amended and
restated in its entirety.

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----
<S>                                                                                                       <C>
                                         PART I

Item 1.  Business.....................................................................................    1

Item 2.  Properties...................................................................................    5

Item 3.  Legal Proceedings............................................................................    6

Item 4.  Submission of Matters to a Vote of Security Holders..........................................    6

                                    PART II

Item 5.  Market for Registrant's Common Stock and Related Shareholder Matters.........................    6

Item 6.  Selected Financial Data......................................................................    7

Item 7.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations........................................................................    8

Item 7a. Quantitative and Qualitative Disclosure About Market Risk....................................   12

Item 8.  Financial Statements and Supplementary Data..................................................   12

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.........   12

                                   PART III

Item 10. Directors and Executive Officers of the Registrant...........................................   13

Item 11. Executive Compensation.......................................................................   15

Item 12. Security Ownership of Certain Beneficial Owners and Management...............................   16

Item 13. Certain Relationships and Related Transactions...............................................   17

                                    PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.............................   19

         Signatures

         Index to Consolidated Financial Statements...................................................  F-1

         Index to Exhibits

</TABLE>
<PAGE>

Coyne International Enterprises Corp. uses a 52/53 week fiscal year ending on
the last Saturday in October. For convenience, the dating of financial
information in this Annual Report on Form 10-K has been labeled as of and for
the years ended October 31, 2001, 2000 and 1999, as the case may be, rather than
the actual fiscal year end.

                          Forward-Looking Information

This Annual Report on Form 10-K includes forward-looking statements. Although
the Company believes that its plans, intentions and expectations reflected in
such forward-looking statements are reasonable, it can give no assurance that
such plans, intentions or expectations will be achieved. When used in this
Annual Report on Form 10-K, the words "anticipate," "believe," "estimate,"
"expect," "intends," and similar expressions, as they relate to the Company, are
intended to identify forward-looking statements.  Forward-looking statements
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by the cautionary statements set forth in this
Annual Report on Form 10-K.  Actual results could differ materially from those
expressed or implied in the forward-looking statements as a result of, but not
limited to, the following factors: (i) the Company's ability to generate
sufficient cash flow from operations, (ii) the availability of future borrowings
under the Company's credit facility, (iii) the availability of sufficient funds
at the time of any change of control to make any required repurchases of the
Company's senior subordinated notes, (iv) restrictions in the Company's credit
facility, (v) the Company's ability to compete with other firms in the textile
rental industry, (vi) general economic conditions in the Company's markets,
(vii)  the timing of acquisitions,(viii) commencing start-up operations and
related costs, (ix) the Company's effectiveness of integrating acquired
businesses and start-up operations, (x)  the timing of capital expenditures,
(xi) seasonal rental and purchasing patterns of the Company's customers, (xii)
price changes in response to competitive factors, (xiii) the Company's ability
to attract and retain qualified employees, and a prolonged work stoppage or
strike by the Company's unionized work force,(xiv) the availiablity of
sufficient funds to meet shareholder redemption requests, and (xv )the results
of Internal Revenue Service audits.

                                    PART I

Item 1.  Business.
         --------

General

     Coyne International Enterprises Corp. ("CTS" or the "Company") was founded
and incorporated in New York in 1929 and has been owned and operated by the
Coyne family since its inception.  The Company rents and distributes uniform and
career apparel, protective clothing, and other non-garment items, including
towels, floormats, dust control, and reusable absorbent products, ("RAS").  The
Company services a wide variety of industries throughout the eastern United
States from 42 service locations and one manufacturing facility. The Company's
products and services are distributed by route delivery trucks, which run out of
18 laundry plants and 24 terminals.  CTS manufactures shop towels, dust mops,
floormats and several other products used in the textile rental industry at its
Blue Ridge manufacturing facility.

     The Company targets its marketing efforts on the value-added aspects of the
textile rental business, such as heavy soil (e.g., printing inks, oils and
solvents) industries. "Value-added" refers to the Company's attempt to protect
its customers from potential environmental liabilities by reducing the amount of
hazardous substances sent to landfills for disposal.  In addition, the Company
assists its customers with OSHA compliance through its protective garment
programs. The Company's products and services assist

                                       3
<PAGE>

customers with their corporate image, the productivity and safety of their
employees and the environmental impact of their businesses. In addition, the
Company works with clients to design, source and manage protective uniform
programs for specific applications, such as flame retardant clothing for
industrial workers.

Products and Services

The Company provides its customers with personalized workplace uniforms and
protective work clothing in a broad range of styles, colors, sizes and fabrics.
The Company's uniform products, which account for approximately 47% of rental
revenue, include shirts, pants, jackets, coveralls, jumpsuits, smocks, aprons
and specialized protective wear, such as fire retardant garments. The Company
also offers non-garment items and services, such as shop towels, floormats,
dust-control mops and other textile products.The Company offers its customers a
range of garment service options, including full-service rental programs in
which garments are owned, cleaned and serviced by the Company and lease programs
in which garments are cleaned and maintained by its customers' individual
employees. The Company also offers the opportunity to purchase garments and
related items directly. As part of its full-service rental business, the Company
picks up a customer's soiled uniforms or other items on a periodic basis
(usually weekly) and, at the same time, delivers cleaned and processed
replacement items. The Company's wastewater treatment capabilities allow it to
process textiles contaminated with petroleum, chemical solvents or printing inks
that require specialized cleaning services that comply with environmental
regulations. These facilities capture waste solvents and oils in liquid form and
then recycle this liquid waste as a supplemental fuel in a secondary fuel-
recycling program.



Sourcing Activities

     Due to the cost and inconsistent quality of shop towels available, the
Company began manufacturing shop towels in 1992. All of the shop towels used in
the Company's laundry business are produced at the Company's Blue Ridge, Georgia
manufacturing facility and are marketed under the Blue Ridge name.
Approximately one-half of Blue Ridge manufactured shop towels are sold to
customers other than CTS. Blue Ridge also manufactures dust mops, aprons,
laundry bags, floormats and RAS socks and pads. The Blue Ridge operations
represented approximately 3.2% of the Company's external revenues in fiscal
2001.

     The Company purchases other rental merchandise from a variety of sources.
The Company believes that it is not dependent on any one supplier and that
alternative sources are available at comparable prices.



Customers

     The Company's customer base is diversified across a variety of industries
and customers range in size from large nationally-recognized businesses to gas
stations and other small retail establishments. Typical customers include
automobile service centers and dealers, delivery services, food and general
merchandise retailers, food processors and service operations, manufacturers,
maintenance facilities,

                                       4
<PAGE>

printers and publishers, restaurants, service companies, soft and durable goods
wholesalers, transportation companies, and others who require employee clothing
for image, identification, protection or utility purposes. The Company currently
services approximately 45,000 accounts in diversified industries from 42
locations throughout the eastern United States. During the past six years, no
single customer accounted for more than 7.0% of total revenue in any year.

Competition

     The industrial segment of the textile rental industry is highly
competitive. There are four competitors in the industry with annual revenues in
excess of $250 million each. These companies account for over half of the
industry's revenues. The remainder of the industry is made up of over 700
smaller businesses, many of which serve one or a limited number of markets or
geographic service areas. The Company believes that it is one of a small group
of companies that have revenues of $50 million to $250 million and which
collectively account for approximately 25% of revenues from the industrial
segment.

The Company believes that the primary competitive factors that affect its
operations are price and its ability to meet customers' product specifications,
which include design, quality and service. The Company believes it maintains
prices comparable to those of its major competitors.  The Company also believes
that its ability to compete effectively is enhanced by its environmental
capabilities.


Employees

     As of October 31, 2001, the Company had approximately 1,850 employees. CTS
is a party to 31 collective bargaining agreements covering approximately 800
employees. These bargaining agreements expire periodically through 2007. The
Company had no work stoppages in 2001. Management believes its employee
relations are good.

Environmental Matters

     The Company and its operations are subject to various federal, state and
local laws and regulations governing, among other things, the generation,
handling, storage, transportation, treatment and disposal of hazardous wastes
and other substances. In particular, industrial laundries use and must dispose
of detergent wastewater and other residues. The Company is attentive to the
environmental concerns surrounding the disposal of these materials and has
through the years taken measures to avoid their improper disposal.

     In the past, the Company has settled, or contributed to the settlement of,
actions or claims brought against the Company relating to the disposal of
hazardous materials and there can be no assurance that the Company will not have
to expend material amounts to remediate the consequences of any such disposal in
the future.

     Under the Federal Comprehensive Environmental Response, Compensation and
Liability Act, the U.S. Environmental Protection Agency ("EPA") is authorized
to, among other things, designate certain contaminated facilities as Superfund
sites and seek from responsible parties the cost to clean-up that contamination.
The Company has in the past responded to a number of requests for information
from the EPA concerning the Company's alleged disposal of hazardous substances
at Superfund sites and currently has one active case where the Company has been
named as a potentially responsible party and could be held liable for  the cost
to remediate the contamination. The extent of liability, if any, depends on a
number

                                       5
<PAGE>

of factors, such as (1) whether the Company disposed of hazardous substances at
the facility, (2) whether the Company or its waste hauling contractor selected
the particular disposal location, (3) the quantity and, under certain
circumstances, the toxicity of hazardous substances that were disposed and (4)
whether the Company was contractually indemnified by its waste hauling
contractor for such potential liability. The Company has established reserves
based on its best estimate of the probable exposure in connection with these
sites. The Company continues to evaluate its exposures as additional information
becomes available.

     Further, under environmental laws, an owner or lessee of real estate may be
liable for the costs of removal or remediation of certain hazardous or toxic
substances located on or in or emanating from such property, as well as related
costs of investigation and property damage. Such laws often impose liability
without regard to whether the owner or lessee knew of or was responsible for the
presence of such hazardous or toxic substances. There can be no assurances that
acquired or leased locations have been operated in compliance with environmental
laws and regulations or that future uses or conditions will not result in the
imposition of liability upon the Company under such laws or expose the Company
to third-party actions such as tort suits.

     In 1999, the EPA withdrew proposed categorical pre-treatment standards,
which would have formed the basis for a federal environmental regulatory
framework applicable to industrial laundry operations.  Therefore, there will be
no additional cost of compliance due to this federal effort.

Item 2.    Properties.
           ----------

As of October 31, 2001, the Company provided textile rental services from 42
facilities. The Company owns 22 of its facilities, including its corporate
headquarters in Syracuse, New York, and leases the balance of its facilities.
The Company has options to renew in most cases, except for leases for certain
garages and small distribution facilities which are leased on a month-to-month
basis.  The Company's facilities consist primarily of laundry plants and laundry
terminals. A laundry plant processes and delivers textile rental products to
customers or to laundry terminals. A laundry terminal does not engage in
production work, but collects soiled inventory, transports it to the laundry
plant for processing and delivers processed inventory to customers.

Item 3.    Legal Proceedings.
           -----------------

     The Company is a party to various litigation matters incidental to the
conduct of its business. The Company does not believe that the outcome of any of
the matters in which it is currently involved will have a material adverse
effect on its financial condition, results of operations or cash flows.

Item 4.    Submission of Matters to a Vote of Security Holders.
           ---------------------------------------------------

     None.

                                       6
<PAGE>

                                    PART II

Item 5.    Market for the Registrant's Common Stock and Related Shareholder
           ----------------------------------------------------------------
Matters.
-------

     There is no established trading market for the Company's equity securities.

     The Company's common and preferred stock are not publicly traded.  As of
October 31, 2001, the Company had 3 stockholders of record.

                                       7
<PAGE>

Item 6.    Selected Financial Data.
           -----------------------

     The selected financial data set forth below for the Company as of October
31, 2001, 2000, 1999, 1998 and 1997 and for each of the years in the five-year
period ended October 31, 2001 are derived from the audited consolidated
financial statements. The data should be read in conjunction with the
consolidated financial statements and related notes, "Management's Discussion
and Analysis of Financial Condition and Results of Operations" included as Item
7, and other financial information included herein.

<TABLE>
<CAPTION>


                                                                  Years Ended October 31,
                                           ---------  -----------------------------------------------------------
                                             1997           1998*           1999          2000(4)          2001
                                           ---------  -------------     ------------   -------------    ---------
                                                                  (dollars in thousands)
<S>                                        <C>            <C>             <C>            <C>             <C>
Operating Data:
 Revenue                                   $122,935       $138,737        $146,212       $150,290        $151,020
 Income from operations                      10,792         10,239           9,835         11,656           7,336
 Depreciation and Amortization                5,289          5,301           5,806          6,470           6,119
 Interest expense (1)                         6,715         25,402          10,842         11,208          11,475
 Extraordinary item, net of tax
   benefit (2)                                                (939)
 Net income (loss)                         $  2,052       $(16,743)       $   (951)      $   (182)       $ (2,556)
 Capital expenditures                      $  2,584       $  6,619        $  7,713       $  2,941        $  3,170

Balance Sheet Data (at period end):
 Working capital                           $  6,769       $ 17,066        $ 20,126       $ 28,986        $ 22,729
 Total assets                               102,621        117,367         121,846        131,282         118,980
 Long-term debt                              58,557         88,538          97,547        106,197          99,833
 Warrants (3)                                 1,743
 Shareholders' equity (deficit)               9,897         (6,846)         (8,432)        (8,689)        (11,785)
</TABLE>

*    53-week fiscal year

(1)  Interest expense for 1998 includes a $17,257 charge for the cost to redeem
     common stock warrants in excess of their book carrying value.

(2)  Represents the extraordinary charge attributable to the write-off of
     unamortized financing charges and original issue discount of $1,304, net of
     tax of benefit $365. These deferred charges originated in 1994 in
     connection with subordinated notes and other debt obligations redeemed in
     1998.

(3)  Common stock warrants were issued in 1994 in connection with the issuance
     of subordinated notes.  Such common stock warrants and subordinated notes
     were redeemed in 1998.

(4)  In 2000 the Company extended the amortization period, on a prospective
     basis, for certain rental merchandise in service, to a period which is more
     consistent with the useful lives of the merchandise.  The impact on net
     income was an increase of approximately $420, net of tax of $380.

     In the fourth quarter of fiscal 2000, the Company recognized the effect of
     certain adjustments, which resulted in an increase to net income.  These
     adjustments, on a pre-tax basis, relate to the receipt of life insurance
     death benefits of $165 and reversal of accruals for deferred compensations
     arrangements and discretionary contributions to a benefit plan no longer
     required of $1,055.  In aggregate the impact of these adjustments was an
     increase to net income of $732, net of tax of $488.

                                       8
<PAGE>

Item 7.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations.
           -------------------------

     The following should be read in conjunction with the Company's consolidated
financial statements and the related notes thereto contained herein.


Results of Operations

     The following table presents certain historical operations data as a
percentage of total revenue for the periods indicated and should be read in
conjunction with the other financial information contained herein.

<TABLE>
<CAPTION>

                                                                Year Ended October 31,
                                                       ---------------------------------------
                                                          2001            2000         1999
                                                       ----------     ------------   ---------
     <S>                                            <C>              <C>             <C>
     Total revenue.............................          100.0%          100.0%          100.0%
     Cost of rental operations.................           70.1            68.2            67.6
     Cost of direct sales......................            3.9             3.9             4.7
     Selling and administrative expenses.......           17.1            15.8            17.0
     Depreciation and amortization.............            4.1             4.3             4.0

     Income from operations....................            4.9             7.8             6.7
</TABLE>


Fiscal Year 2001 Compared to Fiscal Year 2000

     Total Revenue.   Total revenue increased $0.7 million, (0.5%), from 2000 to
2001.  Core rental revenue increased by $1.2 million and direct sale revenue
declined by $0.4 million due to customer accounts lost or contracted as a result
of general economic conditions.  Ancillary revenues, such as delivery, fuel and
environmental charges, increased by $1.9 million, primarily as pass-throughs of
higher than expected energy costs.

     Cost of Rental Operations.   Cost of rental operations were $105.9 million
for fiscal 2001, which represents a 3.3% increase as compared to $102.5 million
for 2000.  This increase is largely due to increased natural gas prices, as well
as merchandise costs of new account installations.

     Selling and Administrative Expense. Selling and administrative expenses
were $25.8 million for 2001, representing an increase of $2.0 million versus
2000. During 2000, the company recognized the benefit of certain non-reoccurring
adjustments relating to life insurance death benefits and reversals of accruals
for deferred compensation arrangements totaling approximately $770,000.

     Depreciation and Amortization.  Depreciation and amortization was $6.1
million for 2001, representing a decrease of approximately $0.4 million or 5.4%
over 2000.  The reduction is due to the reduction in capital expenditures over
the past two years.

                                       9
<PAGE>

Fiscal Year 2000 Compared to Fiscal Year 1999

     Total Revenue.   Total revenues were $150.3 million in fiscal 2000,
representing an increase of $4.1 million or 2.8% as compared to $146.2 million
for fiscal 1999. The growth can be attributed to the new rental business written
by the Company's professional sales force, increases in service to existing
accounts and increases in revenue from ancillary charges.

     Cost of Rental Operations.   Cost of rental operations of $102.5 million
for fiscal 2000 was 68.2% of total revenue for the period.  This represents an
increase of 3.8% as compared to fiscal 1999 and can be attributed to increased
spending to improve customer service.  In 2000 the Company extended the
amortization period, on a prospective basis, for certain rental merchandise in
service, to a period which is more consistent with the useful lives of the
merchandise.  The impact on net income was an increase of approximately $0.4
million.

     Cost of Direct Sales.   Cost of direct sales of $5.9 million for fiscal
2000 was 3.9% of total revenue. Cost of direct sales was approximately 59.1% and
66.2% of direct sale revenue for fiscal 2000 and 1999, respectively.  The
improved margin is attributable to a favorable change in product mix and
successful pricing initiatives in connection with certain products.

     Selling  and Administrative Expense.   Selling and administrative expenses
were $23.7 million for fiscal 2000, representing a decrease of approximately
$1.1 million or 4.5% versus fiscal 1999. During 2000, the company recognized the
benefit of certain non-reoccurring adjustments relating to life insurance death
benefits and reversals of accruals for deferred compensation arrangements
totaling approximately $770,000.


     Depreciation and Amortization.  Depreciation and amortization was $6.5
million for fiscal 2000, representing an increase of approximately $0.7 million
or 11.4% over fiscal 1999.  This increase is attributable to substantial
investments made in facilities and equipment, and information management systems
during 1998 and 1999.

     Interest Expense.  Interest expense was $11.2 million for fiscal 2000 and
$10.8 million for fiscal  1999, representing an increase of $0.4 million, or
3.4%.  This variance is due to an increase in borrowings under the Company's
credit facilities to fund purchases of inventory for certain large contracts.

     Income Taxes.   The Company's provision for income taxes of $0.6 million
for fiscal 2000 was $0.7 million higher than the tax expense for the prior year.
The effective tax rate is not comparable due to the influence of  certain non-
deductible expenses such as the amortization of intangible assets and certain
meal and entertainment expenses.

     Net Income (Loss).   Net loss of $0.2 million for fiscal 2000 compares with
a net loss of $1.0 million for fiscal 1999.  This improvement was due to a
combination of revenue growth and tighter cost controls.

                                       10
<PAGE>

Liquidity and Financial Resources

     The Company is highly leveraged with total indebtedness of $99,833,395 and
a shareholder deficit of $11,785,101 at October 31, 2001. In addition, the
Company has incurred net losses for the last four fiscal years, is required to
maintain certain financial covenants as part of its existing credit facility,
(the Facility), and is dependent on operations for a major portion of its
liquidity and working capital needs. These facts create an uncertainty about the
Company's ability to continue as a going concern. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty. The following table summarizes the contractual obligations of the
Company under long-term debt agreements, capital lease obligations and operating
leases:

<TABLE>
<CAPTION>
 --------------------------------------------------------------------------------------------------------
 Contractual Obligations                               Payments Due by Period
                         --------------------------------------------------------------------------------
                                Total          Less than 1      1 - 3 years      4 - 5     After 5 years
                                                  year                           years
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
<S>                            <C>            <C>               <C>             <C>         <C>
Long-term Debt                 $ 97,835,423       $2,561,523      $18,213,973    $207,935     $76,851,992
---------------------------------------------------------------------------------------------------------
Capital Lease Obligations         1,997,972        1,169,403          828,569
---------------------------------------------------------------------------------------------------------
Operating Leases                  2,921,092        1,439,217        1,152,949     328,926
---------------------------------------------------------------------------------------------------------
Total Contractual Cash
           Obligations         $102,754,487       $5,173,110      $20,192,524    $536,861     $76,851,992
-------------------------================================================================================
</TABLE>


The Company's primary source of liquidity has been cash flows from operations
and borrowing under the Facility, which was amended in fiscal 2001. During 2001,
the Company experienced a net use of cash of $0.8 million. The Company generated
$7.8 million in cash from operating activities in 2001, primarily through the
liquidation of $6.0 million of inventory and reductions in retail merchandise in
service of $1.3 million. $3.2 million in cash was used in 2001 in investing
activities, through additional investments in the Company's fleet and other
operating machinery and equipment. During 2001, the Company used $5.3 million in
cash for financing activities, primarily through reductions in long-term debt of
$6.4 million.

The amendments to the Facility reduced the maximum credit available to the
Company under an acquisition and capital expenditure facility and amended
certain financial covenants so that the Company would be in compliance.  The
maximum credit available under the Company's revolving credit facility, (the
Revolver), subject to collateral availability, is $30.0 million.  At October 31,
2001, the Company had approximately $2.5 million available under the Revolver.
Management is pursuing alternative senior credit facilities from other lenders,
with the goal of providing additional liquidity.  Over the next twelve months,
the Company will continue to focus on improving utilization of new inventory and
merchandise in service as well as controlling overall costs and capital
expenditures to improve liquidity and to meet its financial covenants.  The
Company does not anticipate the need to increase levels of inventory or capital
expenditures in 2002.  Based on the Company's operating budget, the Company
expects that it will be able to meet its obligations as they become due and
maintain compliance with current financing agreements, but there can be no
assurances.

In 2000, the principal shareholder of the Company passed away.  As a result, the
estate of the shareholder will be required to pay certain estate tax
liabilities.  Although the Company has no legal obligation or agreement to
purchase or redeem any of the preferred or common stock of the Company held by
the estate,

                                       11
<PAGE>

it is anticipated that the Company will redeem or purchase certain shares of
stock held by the estate in order for the estate to meet its tax obligations as
they become due. The Company, under the indenture for its senior subordinated
notes, is permitted to redeem equity interests of the Company in order to
satisfy these obligations. However, under the provisions of the indenture, the
annual redemptions are not permitted to exceed $1.0 million in each of the
second, third, fourth, fifth and sixth calendar years and $2.25 million in each
of the seventh, eighth, ninth and tenth calendar years following the death of
the shareholder, plus an additional $2.0 million in calendar year 2003, subject
to certain provisions. There were no redemptions in 2001. Any redemptions could
be limited by covenants in the loan agreement.

Effects of Inflation

     Inflation has had the effect of increasinn the reported amounts of the
Company's revenues and costs. However, the Company believes that it has been
able to recover increases in costs attributable to inflation through increases
in its prices and improvements in its productivity.

Impact of Recently Issued Accounting Standards

     In June 2001, the Financial Accounting Standards Board issued Statements of
Financial Accounting Standards No. 141, Business Combinations, (SFAS No. 141)
and No. 142, Goodwill and Other Intangible Assets, (SFAS No. 142) which are
effective July 1, 2001 and November 1, 2002, respectively, for the Company. SFAS
No. 142 allows for early adoption, as of November 1, 2001, by the Company. SFAS
No. 141 requires that the purchase method of accounting be used for all business
combinations initiated after June 30, 2001. Under SFAS No. 142, amortization of
goodwill, including goodwill recorded in past business combinations, will
discontinue upon adoption of this standard. In addition, goodwill recorded as a
result of business combinations completed during the six-month period ending
December 31, 2001, will not be amortized. All goodwill and intangible assets
will be tested for impairment in accordance with the provisions of the
statement. The Company is currently reviewing the provisions of SFAS No. 141 and
SFAS No. 142 and assessing the impact of adoption.

     In October, 2001 the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets, (SFAS No. 144) which is effective November 1,
2002 for the Company. SFAS No. 144 outlines the requirements used to test long-
lived assets, other than goodwill and intangibles, for impairment. In addition,
the statement proscribes accounting and reporting for long-lived assets or
groups of assets to be disposed. The Company is currently reviewing the
provisions of SFAS No. 144 and assessing the impact of adoption.

Item 7a.  Quantitative and Qualitative Disclosures About Market Risk.
          ----------------------------------------------------------

     The Company manages interest rate risk by using a combination of variable
and fixed rate debt, as well as interest rate swap agreements.  The Company's
earnings are affected by changes in short-term interest rates due to the use of
variable rate notes and revolving credit facilities amounting to approximately
$20.1 million.  This exposure is limited by the use of interest rate swap
agreements as a hedge against the variability in short-term rates.  At October
31, 2001, approximately $4.3 million of the Company's variable-rate debt was
covered under interest rate swap agreements.  The interest rate swap agreements
are entered into for periods consistent with related underlying exposures and do
not constitute positions independent of those exposures.  The Company does not
enter into contracts for speculative purposes, nor is it a party to any
leveraged instrument.  If short-term rates increase by one-half percent, (50

                                       12
<PAGE>

basis-points), the Company's interest expense would increase, and income before
taxes would decrease, by approximately $0.1 million.  Conversely, if short-term
rates decrease by one-half percent, (50 basis-points), the Company's interest
expense would decrease, and income before taxes would increase, by approximately
$0.1 million.

Item 8.   Financial Statements and Supplementary Data.
          -------------------------------------------

     The financial statements, financial statement schedules and related
documents that are filed with this Report are listed in Item 14(a) of this
Report on Form 10-K and begin on page F-1.

Item 9.   Changes in and Disagreements with Accountants
          on Accounting and Financial Disclosure.
          --------------------------------------

     None.

                                       13
<PAGE>

                                    PART III

Item 10.  Directors and Executive Officers of the Registrant.
          --------------------------------------------------

     The following table sets forth certain information regarding the Company's
directors and certain key executive officers:

       Name                  Age                    Position
       ----                  ---                    --------
Thomas M. Coyne              63     Chairman of the Board, President and Chief
                                    Executive Officer

Thomas C. Crowley            54     Director, Executive Vice President and Chief
                                    Operating Officer

J. Patrick Barrett (1)(2)    64     Director

Wallace J. McDonald (1)(2)   61     Director

David S. Evans (1)(2)        63     Director

Raymond T. Ryan              74     Director, Assistant Treasurer

Stephen M. Owen              38     Vice President of Finance, Chief Financial
                                    Officer, Treasurer

Alexander Pobedinsky         40     Vice President, General Counsel and
                                    Secretary


(1)  Member of the Audit and Finance Committee.
(2)  Member of the Human Resource and Compensation Committee.

     Thomas M. Coyne is Chairman of the Board, President and Chief Executive
Officer of the Company. Mr. Coyne joined the Company in 1977 after spending 17
years with an engineering and construction company. He has served in various
positions responsible for plant operations and sales before his promotion to
President in 1982. Mr. Coyne currently serves as Chairman of the Board for the
Textile Rental Services Association.

     Thomas C. Crowley has been a Director of the Company since 1993. Mr.
Crowley was Executive Vice President of Evergreen Bancorp, Inc. in Glens Falls,
New York from 1994 to 1999.  Mr. Crowley joined the Company as Executive Vice
President and Chief Operating Officer in June 1999.

     J. Patrick Barrett has been a Director of the Company since July, 1998. Mr.
Barrett has served as Chairman of Carpat Investments, a private investment firm,
since 1987.  Mr. Barrett also has previously served as Chairman and CEO of Avis
Inc., President of Telergy, Inc. and has been a director of Lincoln National
Corp. since 1990.

     Wallace J. McDonald has been a Director of the Company since 1987. Mr.
McDonald has been a partner with the law firm of Bond, Schoeneck & King, LLP
based in Syracuse, New York since 1967.

     David S. Evans has been a Director of the Company since 1998 and from 1994
to 1996.  Mr. Evans has been a Director of Confluence Systems, Inc. of High
Point, NC since 1995.  He has previously served as Director, President and Chief
Executive Officer of CBP Resources, Inc. and Director, President and Chief
Executive Officer of Delta Protein, Inc. of Memphis, TN.

                                       14
<PAGE>

     Raymond T. Ryan has been a Director of the Company since 1991. From March
1991 through July 1995 he served as Chief Financial Officer of the Company. He
is currently Assistant Treasurer of the Company. Mr. Ryan has been an employee
of the Outaouais Group, Inc. since 1991. Mr. Ryan is a C.P.A. and a retired
partner of PricewaterhouseCoopers, LLP.

     Stephen M. Owen  joined the Company in 2000 and has served as Vice
President of Finance, Chief Financial Officer and Treasurer since May 2001.  Mr.
Owen is a certified public accountant and his experience includes seven years
with Ernst & Young.

     Alexander Pobedinsky has been the General Counsel and Secretary of the
Company since 1997. Mr. Pobedinsky was associated with the law firm of O'Hara,
Hanlon, Knych and Pobedinsky, LLP, based in Syracuse, New York, from 1991
through 1999.  Mr. Pobedinsky joined the Company in January 2000, as Corporate
Secretary, Vice President and General Counsel.

Item 11.  Executive Compensation.
          ----------------------

     The following table sets forth the compensation during the last three
fiscal years earned by the Company's President and other executive officers
during the fiscal year ended October 31, 2001:

<TABLE>
<CAPTION>
                                                Fiscal   Annual Compensation     All Other
                                                         -------------------
             Name and Principal Position         Year    Salary       Bonus    Compensation /(1)/
             ---------------------------         ----    -----        -----    ------------------
<S>                                             <C>      <C>         <C>       <C>
Thomas M. Coyne                                  2001    $520,000                 $ 4,500
Chairman of the Board, President and Chief       2000    $520,000                 $ 3,765
Executive Officer                                1999    $487,647                 $13,024

Thomas C. Crowley                                2001    $244,146                 $ 8,547
Director, Executive Vice President and Chief     2000    $200,000     $75,000     $ 5,884
Operating Officer                                1999    $107,092     $25,000

Alexander Pobedinsky                             2001    $155,000     $ 3,000     $ 7,197
Vice President, General Counsel and Secretary    2000    $155,000                 $ 3,600
                                                 1999    $ 55,000                 $ 3,600
Alan D. Wilson
Vice President of Operations                     2001    $125,000                 $ 6,675
                                                 2000    $ 18,301

Anthony F. O'Connor                              2001    $107,000                 $ 6,405
Vice President of Sales and Marketing            2000    $107,000                 $ 6,480
                                                 1999    $107,000                 $10,249
</TABLE>

(1)    Includes the Company's matching contribution under the 401(k) plan as
       follows:

                Name               1999           2000         2001
                ----               ----           ----         ----

          Thomas M. Coyne         $  10,904     $  3,765     $  4,500
          Thomas C. Crowley       $       0     $  1,084     $  3,474
          Alexander Pobedinsky    $       0     $  2,309     $  2,397
          Alan D. Wilson          $       0     $      0     $  1,875
          Anthony F. O'Connor     $   4,659     $  1,680     $  1,607

                                       15
<PAGE>

     Compensation of Directors

Each director, who is not also an employee of the Company, receives $2,500 for
each meeting of the Board of Directors that he attends and $500 for each
committee meeting that he attends, except as otherwise established. In addition,
the Company reimburses directors for out-of-pocket expenses.

The Company provides no retirement benefits to non-employee directors. The
directors who are also employees of the Company receive no additional
compensation from the Company for services rendered in their capacity as
directors.

Item 12.  Security Ownership of Certain Beneficial Owners and Management.
          --------------------------------------------------------------

     All of the Company's equity securities are owned of record by the Coyne
family or trusts established by them.

<TABLE>
<CAPTION>
                                                COMMON STOCK                                     PREFERRED STOCK
                                                ------------                                     ---------------
                                Class A (Voting)           Class B (Non-Voting)        Class A (Non-Voting)
                                ----------------           -------------------         --------------------
                             Number of                    Number of                    Number of
                               Shares                       Shares                       Shares
                            Beneficially   Percentage    Beneficially   Percentag     Beneficially   Percentage
                              Owned(1)      of Class       Owned(1)      of Class       Owned(1)      of Class
                              -------       -------        --------      --------       --------      --------
<S>                         <C>            <C>           <C>            <C>           <C>            <C>
J. Stanley Coyne
 Revocable Trust/(2)//(3)/..                      --         63,305         85.5%            19,745       85.5%

J. Stanley Coyne Inter
 Vivos Irrevocable
  Trust/(2)//(4)/...........    1,020           34.9%            --             --                 --         --

Thomas M. Coyne Blue
 Ridge Trust/(2)//(5)/......    1,903           65.1%        10,725           14.5%             3,362       14.5%

<CAPTION>

                                     Class B (Non-Voting)
                                     -------------------
                                       Number of
                                         Shares
                                      Beneficially   Percentage
                                        Owned(1)      of Class
                                        --------      --------
<S>                                  <C>             <C>
J. Stanley Coyne
 Revocable Trust/(2)//(3)/..                2,272         76.0%

J. Stanley Coyne Inter
 Vivos Irrevocable
  Trust/(2)//(4)/...........                   --           --

Thomas M. Coyne Blue
 Ridge Trust/(2)//(5)/......                  719         24.0%
</TABLE>

(1)    Beneficial ownership is determined in accordance with the rules of the
       Securities and Exchange Commission (the "SEC") and includes voting or
       investment power with respect to the securities. Accordingly they may
       include securities owned by or for, among others, the spouse and/or minor
       children or the individual and any other relative who has the same home
       as such individual, as well as other securities as to which the
       individual has or shares voting or investment power or has the right to
       acquire under outstanding stock option within 60 days after the date of
       this table.

(2)    During fiscal 2000, the principal shareholder, J. Stanley Coyne, passed
       away. It is anticipated that after settlement of the estate of J. Stanley
       Coyne, all voting shares of the Company will be held in trusts for the
       benefit of Thomas M. Coyne. The address of such beneficial owner is c/o
       Coyne International Enterprises Corp., 140 Cortland Avenue, P.O. Box
       4854, Syracuse, New York 13221.

(3)    The trustees of this trust are Thomas M. Coyne, Raymond T. Ryan and
       Wallace J. McDonald, who share voting and investment power with respect
       to the shares held by this trust and who may be deemed to be the
       beneficial owner of all such shares. Such trustees disclaim beneficial
       ownership of these shares.

(4)    The trustees of this trust are Thomas M. Coyne, Raymond T. Ryan and
       Wallace J. McDonald, who share voting and investment power with respect
       to the shares held by this trust and who may be deemed to be the
       beneficial owner of all such shares. Such trustees disclaim beneficial
       ownership of these shares.

(5)    The trustee of this trust is Raymond T. Ryan, who holds voting and
       investment power with respect to the shares held by this trust and who
       may be deemed to be the beneficial owner of all such shares. Such trustee
       disclaims beneficial ownership of these shares.

                                       16
<PAGE>

Item 13.  Certain Relationships and Related Transactions.
          ----------------------------------------------

Compensation Committee Interlocks and Insider Participation in Compensation
Decisions

     The Company's Human Resources and Compensation Committee consists of
Messrs. Barrett, Evans, and McDonald. No officer of the Company serves as a
voting member of the Human Resources and Compensation Committee.

     Transactions with certain of the members of such committee are discussed
below under "Professional Services."

Certain Transactions with Members of the Coyne Family

     The Company has an outstanding note receivable from the estate of J.
Stanley Coyne in the amount of $1,264,355. This note bears interest at the
applicable federal rate as determined by the Internal Revenue Service (3.6% at
October 31, 2001). It is anticipated that this receivable will be settled
through the redemption of stock held by the estate.

     The Company made advances of $40,000 during 2001 to Susan Whitney, the
daughter of J. Stanley Coyne. Such accumulated advances total $132,000 as of
October 31, 2001. The Company, at its discretion, made advances of $11,000 per
month to Gerald Coyne, a son of J. Stanley Coyne, and former officer of the
Company. The total accumulated amount of such advances as of October 31, 2001
was $269,135. The Company has made cumulative advances to other family members
totaling $87,157. Subject to the provisions of the subordinated debt indenture,
it is anticipated that all of these advances will be repaid through redemption
of stock held by the estate of J. Stanley Coyne.

     The Company has an uncollateralized outstanding note receivable from Thomas
M. Coyne in the amount of $325,000. The note bears interest at 10% and matures
in 2007. In addition the Company has made advances to Thomas M. Coyne of
approximately $127,000 as of October 31, 2001.

Professional Services

     Raymond T. Ryan, a director of the Company, is an employee of The Outaouais
Group, Inc., a consulting firm, which provides various tax and financial
services to the Company. The Company paid fees of $94,671 to The Outaouais
Group, Inc. for various services during 2001.

     J. Patrick Barrett, a director of the Company, is owner of Syracuse
Executive Air Services Inc.. The Company paid fees of $78,989 to Syracuse
Executive Air Services Inc. for airplane maintenance services during 2001.

     Wallace J. McDonald, a director of the Company, is a partner with the law
firm of Bond, Schoeneck & King. The Company paid fees of $27,860 to Bond,
Schoeneck & King for legal services in 2001.

                                       17
<PAGE>

                                    PART IV

Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
          ----------------------------------------------------------------

          (a)  Documents filed as part of this report:

               1.   List of Consolidated Financial Statements. The following
consolidated financial statements and the notes thereto of Coyne International
Enterprises Corp. and Subsidiaries, which are attached hereto beginning on page
F-1, have been incorporated by reference into Item 8 of this Report on Form 10-
K:

                    Independent Auditor's Report
                    Consolidated Balance Sheet as of October 31, 2001 and 2000
                    Consolidated Statement of Operations
                          for the years ended October 31, 2001, 2000, and 1999

                    Consolidated Statement of Cash Flows for the years ended
                         October 31, 2001, 2000, and 1999
                    Consolidated Statement of Changes in Shareholders' Equity
                         and Comprehensive Income for the years ended October
                         31, 2001, 2000, and 1999
                    Notes to Consolidated Financial Statements


               2.   Financial Statement Schedules
                         Schedule II: Valuation and Qualifying Accounts and
                         Reserves

               3.   List of Exhibits filed pursuant to Item 601 of Regulation S-
K. The Exhbitis listed in the Index to Exhibits are filed as part of this Annual
Report.

          (b)  Reports on Form 8-K

               No Reports on Form 8-K were filed by the Registrant during the
quarter ended October 31, 2001.

                                      18
<PAGE>

                                  SIGNATURES
                                  ----------

     Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                        COYNE INTERNATIONAL ENTERPRISES CORP.

Date: February 22, 2002                 By: /s/ Thomas M. Coyne
                                            ------------------------------------
                                            Thomas M. Coyne
                                            Chairman of the Board, President and
                                            Chief Executive Officer

     Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed below by the following persons on behalf of the
registrant in the capacities and on the date indicated.

       Signature                     Capacity                    Date
------------------------  --------------------------------    -----------------

/s/ Thomas M. Coyne       Chairman of the Board, President    February 22, 2002
------------------------  and Chief Executive Officer
Thomas M. Coyne           (Principal Executive Officer)


/s/ Thomas C. Crowley     Director, Executive Vice President  February 22, 2002
------------------------  and Chief Operating Officer
Thomas C. Crowley


/s/ Stephen M. Owen       Vice President and Chief Financial  February 22, 2002
------------------------  Officer (Principal Financial and
Stephen M. Owen           Accounting Officer), Treasurer


/s/ Alexander Pobedinsky  Vice President, Secretary and       February 22, 2202
------------------------  General Counsel
Alexander Pobedinsky

/s/ Wallace J. McDonald   Director                            February 22, 2002
------------------------
Wallace J. McDonald

/s/ Raymond T. Ryan       Director and Assistant Treasurer    February 22, 2002
------------------------
Raymond T. Ryan

/s/ J. Patrick Barrett    Director                            February 22, 2002
------------------------
J. Patrick Barrett

/s/ David S. Evans        Director                            February 22, 2002
------------------------
David S. Evans


<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
Coyne International Enterprises Corp. and Subsidiaries
-----------------------------------------------------------------------------------------------
Schedule II - Valuation and Qualifying Accounts and Reserves
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
         Description              Balance at     Charged to      Charges for       Balance at
                                 Beginning of     Costs and     Which Reserves     End of Year
                                     Year         Expenses       were Created

-----------------------------------------------------------------------------------------------
<S>      <C>                    <C>             <C>            <C>                <C>
-----------------------------------------------------------------------------------------------
Allowance for Doubtful Accounts
-----------------------------------------------------------------------------------------------
         October 31, 1999               23,298       364,048          (318,663)          68,683
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
         October 31, 2000               68,683       832,276          (559,616)         341,343
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
         October 31, 2001              341,343     1,206,202          (706,924)         840,621
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
Reserve for Obsolete Inventory
-----------------------------------------------------------------------------------------------
         October 31, 1999               62,282        76,735                  -         139,017
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
         October 31, 2000              139,017        24,310                  -         163,327
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
         October 31, 2001              163,327       (51,140)                 -         112,187
-----------------------------------------------------------------------------------------------
</TABLE>


<PAGE>
Coyne International Enterprises Corp.
and Subsidiaries

Consolidated Financial Statements

October 31, 2001 and 2000
<PAGE>

                         Independent Auditor's Report
                         ----------------------------

                                                                January 25, 2002

To the Board of Directors of
Coyne International Enterprises Corp.,

     We have audited the accompanying consolidated balance sheet of Coyne
International Enterprises Corp., and subsidiaries as of October 31, 2001, and
the related consolidated statements of operations, changes in shareholders'
equity and comprehensive income, and cash flows for the year then ended. Our
audit also included the financial statement schedule listed in the index at Item
14. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and financial statement schedule based on our audits.

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

     In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position of
Coyne International Enterprises Corp. and subsidiaries as of October 31, 2001,
and the consolidated results of their operations and their cash flows for the
year then ended in conformity with accounting principles generally accepted in
the United States of America. Also, in our opinion, the financial statement
schedule, when considered in relation to the basic consolidated financial
statements taken as a whole, presents fairly in all material respects the
information set forth therein.

     The accompanying financial statements and financial statement schedule have
been prepared assuming that the Company will continue as a going concern. As
discussed in Note 2 to the financial statements, the Company has experienced
recurring losses, has a shareholder deficit and is required to maintain
financial covenants under its senior credit facility. These conditions raise
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are also described in Note 2. The financial
statements and financial statement schedule do not include any adjustments that
might result from the outcome of this uncertainty.

                                         Dannible & McKee, LLP
                                         Syracuse, New York


<PAGE>

                       Report of Independent Accountants

The Board of Directors
Coyne International Enterprises Corp.

In our opinion, the consolidated financial statements listed in the index
appearing under Item 14(a)(1) present fairly, in all materials respects, the
financial position of Coyne International Enterprises Corp. and Subsidiaries at
October 31, 2000, and the results of their operations and their cash flows for
each of the two years in the period ended October 31, 2000 in conformity with
accounting principles generally accepted in the United States of America. In
addition, in our opinion, the financial statement schedule listed in the index
appearing under Item 14(a)(2) presents fairly, in all material respects, the
information set forth therein when read in conjunction with the related
consolidated statements. These financial statements and financial statement
schedule are the responsibility of the Company's management; our responsibility
is to express an opinion on these financial statements and financial statement
schedule based on our audits. We conducted our audits of these statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.



PricewaterhouseCoopers LLP



January 25, 2001


<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidated Balance Sheet
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                    October 31,
                                                                                    -----------
Assets                                                                          2001          2000
                                                                            ------------  ------------
<S>                                                                        <C>            <C>
Current Assets:
  Cash and cash equivalents                                                 $    119,519  $    909,340
  Accounts receivable, less allowance for doubtful accounts
   of $840,621 in 2001 and $341,343 in 2000                                   15,453,339    16,929,975
  Inventories                                                                  6,697,698    12,725,141
  Rental merchandise in service                                              31,401,3763     2,712,967
  Prepaid expenses and other assets                                              547,284       698,768
                                                                            ------------  ------------
     Total current assets                                                     54,219,216    63,976,191
Property, plant and equipment, at cost:
  Land                                                                         2,432,180     2,432,181
  Buildings and improvements                                                  40,488,846    39,829,930
  Machinery and equipment                                                     44,436,846    42,729,434
  Vehicles                                                                    12,595,527    11,420,294
  Construction in process                                                        918,124     1,505,965
                                                                            ------------  ------------
                                                                             100,871,523    97,917,804
Less: Accumulated depreciation                                                (59,236,44)  (54,100,700)
                                                                            ------------  ------------
     Property, plant and equipment, net                                       41,635,179    43,817,104

Other assets:
  Purchased routes and acquisition tangibles, net                             16,512,266    17,239,942
  Deferred financing net costs,                                                2,169,933     2,322,568
  Deferred income taxes                                                        4,197,193     3,724,623
  Other                                                                          246,965       202,521
                                                                            ------------  ------------
     Total other assets                                                       23,126,357    23,489,654

                                                                            ------------  ------------
     Total Assets                                                           $118,980,752  $131,282,949
                                                                            ============  ============
</TABLE>

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

                                       2
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidated Balance Sheet
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                           October 31,
                                                                                           ----------
Liabilities and Shareholders' Equity (Deficit)                                     2001                2000
                                                                               ------------        -------------
<S>                                                                            <C>                 <C>
Current Liabilities:
     Current maturities of long-term obligations                               $  3,730,926        $   3,385,619
     Accounts payable                                                             5,152,582            8,934,685
     Cash overdrafts                                                              1,488,087
     Accrued expenses:
        Salaries and employee benefits                                            3,609,840            4,714,396
        Accrued interest                                                          3,503,660            3,655,175
        Other                                                                     3,312,228            2,268,201
     Deferred income taxes                                                       10,692,978           12,032,060
                                                                               ------------        -------------
          Total current liabilities                                              31,490,301           34,990,136

Long-term obligations, net of current maturities                                 96,102,469          102,811,292
Other liabilities                                                                 3,173,083            2,170,095
                                                                               ------------        -------------
          Total liabilities                                                     130,765,853          139,971,523
                                                                               ------------        -------------

Shareholders equity (deficit):
     Preferred stock - 5% non-cumulative, non-voting, non-convertible
        callable at par:
        Class A - $100 par value; 30,000 shares authorized, 23,107
          shares issued and outstanding                                           2,310,700            2,310,700
        Class B - $500 par value; 5,000 shares authorized 2,991 shares issued
          in 2001, 4,991 shares issued in 2000, 2,991 shares outstanding          1,495,500            2,495,500
     Common stock - $.01 par value:
        Class A - voting; 100,000 shares authorized 2,923 shares
          issued and outstanding                                                         29                   29
        Class B - non-voting; 99,000 shares authorized, 74,030 shares
          issued and outstanding                                                        740                  740
     Additional paid-in capital                                                   1,682,845              849,512
     Retained earnings (deficit)                                                (14,767,786)         (12,212,139)
     Accumulated other comprehensive loss                                          (259,037)
                                                                               ------------        -------------
                                                                                 (9,537,009)          (6,555,658)
     Less:
        Treasury stock, 2,000 shares of Class preferred stock in 2000,
          at cost                                                                                       (166,667)
        Shareholder receivables                                                  (2,248,092)          (1,966,249)
                                                                               ------------        -------------
          Total shareholders' equity (deficit)                                  (11,785,101)          (8,688,574)
                                                                               ------------        -------------

   Commitments and contingent liabilities (See Note 8)

          Total Liabilities and Shareholders' Equity (Deficit)                 $118,980,752        $ 131,282,949
                                                                               ============        =============
</TABLE>

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

                                       3
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidated Statement of Operations
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                           Year Ended October 31,
                                                           ----------------------
                                                     2001            2000           1999
                                                 ------------    ------------   ------------
<S>                                              <C>             <C>            <C>
Revenue:
     Rental operations                           $141,480,717    $140,318,365   $135,771,890
     Direct sales                                   9,539,148       9,972,107     10,439,832
                                                 ------------    ------------   ------------
             Total revenue                        151,019,865     150,290,472    146,211,722

Operating expenses:
     Cost of rental operations                    105,854,320     102,531,967     98,812,269
     Cost of direct sales                           5,944,091       5,888,754      6,907,257
     Selling and administrative expenses           25,767,088      23,743,858     24,851,229
     Depreciation and amortization                  6,118,547       6,469,505      5,805,699
                                                 ------------    ------------   ------------
             Total operating expenses             143,684,046     138,634,084    136,376,454
                                                 ------------    ------------   ------------

        Income from operations                      7,335,819      11,656,388      9,835,268

Interest expense                                   11,474,922      11,208,439     10,841,533
                                                 ------------    ------------   ------------

        Income (loss) before income taxes          (4,139,103)        447,949     (1,006,265)

   Income tax expense (benefit)                    (1,583,456)        630,000        (55,000)
                                                 ------------    ------------   ------------

        Net Loss                                   (2,555,647)       (182,051)      (951,265)
                                                 ============    ============   ============
</TABLE>

                                       4
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries
Consolidated Statement of Changes in Shareholders' Equity and Comprehensive
Income
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                          Preferred Stock                    Common Stock
                                               -------------------------------------  -----------------------------------
                                                     Class A            Class B              Class A       Class B
                                               -------------------------------------  -----------------------------------
                                               Number               Number            Number             Number
                                                 of                   of                of                 of             Additional
                                               Shares               Shares            Shares             Shares            Paid-in
                                               Issued     Amount    Issued    Amount  Issued    Amount   Issued    Amount   Capital
                                               -----------------  ------------------  ----------------  ----------------------------
<S>                                            <C>    <C>           <C>    <C>        <C>       <C>     <C>        <C>    <C>
Balance, October 31, 1998                      23,107 $2,310,700    4,991  2,495,500    2,923     $29    74,030     $740    $849,512

  Net loss
  Advances to shareholder

            Comprehensive Income (Loss)

                                               -----------------  ------------------  ----------------  ----------------------------
Balance, October 31, 1999                      23,107 $2,310,700    4,991  2,495,500    2,923     $29    74,030     $740    $849,512
                                               -----------------  ------------------  ----------------  ----------------------------

  Net loss
  Advances to shareholder

            Comprehensive Income (Loss)

                                               -----------------  ------------------  ----------------  ----------------------------
Balance, October 31, 2000                      23,107 $2,310,700    4,991  2,495,500    2,923     $29    74,030     $740    $849,512
                                               =================  ==================  ================  ============================
  Net loss
  Advances to shareholder
  Retirement of treasury shares                                    (2,000)(1,000,000)                                        833,333
  Cumulative effect of a change
             in accounting principle,
             net of tax of $6,606
  Change in fair value of cash flow hedges,
             net of tax of $178,866

               Comprehensive Income (Loss)

                                               -----------------  ------------------  ----------------  ----------------------------
Balance, October 31, 2001                      23,107 $2,310,700    2,991 $1,495,500    2,923     $29    74,030     $740  $1,682,845
                                               =================  ==================  ================  ============================
</TABLE>
<TABLE>
<CAPTION>
                                                                                        Treasury Stock
                                                                                        ---------------
                                                           Accumulated                                                    Total
                                                              Other                     Number                         Shareholders'
                                               Retained   Comprehensive  Comprehensive    of               Shareholder   Equity
                                               Earnings       Income         Income     Shares   Amount    Receivables  (Deficit)
                                            ----------------------------------------------------------------------------------------
<S>                                         <C>           <C>            <C>           <C>     <C>         <C>          <C>
Balance, October 31, 1998                   ($11,078,823)                              (2,000) ($166,667) ($1,256,520)  ($6,845,529)

  Net loss                                      (951,265)                  ($951,265)                                      (951,265)
  Advances to shareholder                                                                                    (635,018)     (635,018)
                                                                         -----------
            Comprehensive Income (Loss)                                    ($951,265)
                                                                         ===========
                                            ------------                               ---------------------------------------------
Balance, October 31, 1999                   ($12,030,088)                              (2,000) ($166,667) ($1,891,538)  ($8,431,812)
                                            ------------                               ---------------------------------------------

  Net loss                                      (182,051)                   (182,051)                                      (182,051)
  Advances to shareholder                                                                                     (74,711)      (74,711)
                                                                         -----------
            Comprehensive Income (Loss)                                    ($182,051)
                                                                         ===========
                                            ---------------------------                ---------------------------------------------
Balance, October 31, 2000                   ($12,212,139)            $0                (2,000) ($166,667  ($1,966,249)  ($8,688,574)
                                            ===========================                =============================================

  Net loss                                    (2,555,647)                 (2,555,647)                                    (2,555,647)
  Advances to shareholder                                                                                    (281,843)     (281,843)
  Retirement of treasury shares                                                         2,000    166,667
  Cumulative effect of a change
             in accounting principle,
             net of tax of $6,606                                 9,934        9,934                                          9,934
  Change in fair value of cash flow hedges,
             net of tax of $178,866                            (268,971)    (268,971)                                      (268,971)
                                                                         -----------
               Comprehensive Income (Loss)                               ($2,814,684)
                                                                         ===========
                                            ---------------------------                ---------------------------------------------
Balance, October 31, 2001                   ($14,767,786)     ($259,037)                    0         $0  ($2,248,092) ($11,785,101)
                                            ===========================                =============================================
</TABLE>
                                       5
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidated Statement of Cash Flows
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                 Year Ended October 31,
                                                                                 ---------------------
                                                                         2001           2000           1999
                                                                   ------------    ------------- --------------
<S>                                                                <C>             <C>           <C>
Cash flows from operating activities:
   Net loss                                                        $ (2,555,647)    $   (182,051)   $  (951,265)
   Adjustments to reconcile net loss to net
     cash provided by (used in) operating activities;
        Depreciation of property, plant and equipment                 4,279,249        4,605,811      4,030,873
        Amortization of capitalized leases                            1,073,401        1,073,401      1,073,401
        Amortization of acquisition intangibles                         778,188          790,293        701,425
        Amortization of deferred financing costs                        342,604          334,025        355,249
        Provision for allowance for doubtful accounts                 1,206,202          832,276        364,048
        Provision for deferred income taxes                          (1,639,392)         497,437       (125,000)
        Changes in operating assets and operating liabilities:
          Accounts receivable                                           270,434         (993,293)    (2,919,971)
          Inventories                                                 6,027,443       (5,208,076)      (525,002)
          Rental merchandise in service                               1,311,591       (4,874,883)       499,218
          Prepaid expenses and other assets                             107,040          339,600        108,642
          Accounts payable, accrued expenses,
             and other liabilities                                   (3,812,679)        (987,565)    (2,806,713)
                                                                   ------------     ------------    -----------
        Net cash provided by (used in) operating activities           7,388,434       (3,772,965)      (195,095)
                                                                   ------------     ------------    -----------

Cash flows from investing activities:
   Purchase of property, plant and equipment                         (3,170,725)      (2,940,808)    (7,713,393)
   Acquisition of business, net of cash acquired                        (50,512)      (1,115,157)    (1,467,052)
                                                                   ------------     ------------    -----------
        Net cash used in investing activities                        (3,221,237)      (4,055,965)    (9,180,445)
                                                                   ------------     ------------    -----------

Cash flows from financing activities:
   Proceeds from long-term borrowings                                38,268,039       50,637,540     50,558,770
   Payments under long-term obligations                             (44,631,555)     (41,987,966)   (41,549,085)
   Increase in bank overdrafts                                        1,488,087)
   Increase in shareholder receivables                                 (281,843)         (74,711)      (403,564)
   Deferred financing costs incurred                                   (189,969)         (50,000)       (90,670)
                                                                   ------------     ------------    -----------
        Net cash provided by (used in) financing activities          (5,347,241)       8,524,863      8,515,451
                                                                  -------------     ------------   ------------
        Net increase (decrease) in cash                              (1,180,044)         695,933       (860,089)

Cash and cash equivalents:
   Beginning of period                                                1,299,563          213,407      1,073,496
                                                                   ------------     ------------    -----------
   End of period                                                   $    119,519     $    909,340    $   213,407
                                                                   ============     ============    ===========

Supplemental disclosure of cash flow information:
   Interest paid                                                   $ 11,283,812     $ 11,117,560    $ 9,758,977
   Income taxes paid                                                     51,732           55,372         74,959
</TABLE>

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

                                       6
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

1.   Summary of Significant Accounting Policies

     Business Description

     Coyne International Enterprises Corp., (the Company), is a full-service
     provider of work garments, shop towels, floor mats, dust mops, and other
     accessories. The Company manufactures, rents, cleans, and sells these items
     throughout the eastern United States.

     Principles of Consolidation and Revenue Recognition

     The consolidated financial statements include the accounts of the Company
     and its subsidiaries, all of which are wholly owned. All intercompany
     accounts have been eliminated.

     The Company recognizes rental revenues when the services are performed.
     Direct sales are recognized when products are shipped to customers.

     Fiscal Year

     The Company's fiscal year ends on the last Saturday in October. For
     convenience, the dating of the accompanying financial statements, and notes
     herein, have been labeled as of and for the years ended October 31, 2001,
     2000 and 1999, rather than the actual fiscal year end dates.

     Use of Estimates

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

     Cash and Cash Equivalents

     The Company considers all highly liquid investments with an original
     maturity of three months or less, at date of purchase, to be cash
     equivalents.

     Inventories

     The Company accounts for its inventory on the lower of first-in, first-out
     (FIFO) cost or market.

     Rental Merchandise in Service

     Rental garments, mats, towels, and other rental merchandise in service are
     carried at cost and amortized on a straight-line basis over their estimated
     income-producing lives, ranging principally from 10 to 60 months. Effective
     November 1, 1999, the Company changed the related amortization periods, on
     a prospective basis, for certain rental merchandise in service, from 12
     months to 18 months, which is more consistent with their respective useful
     lives. The impact on net income for the year ended October 31, 2000 was an
     increase of approximately $420,000, net of taxes of $380,000.

                                       7
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

     Property, Plant and Equipment

     The Company provides for depreciation on the straight-line method based on
     the following estimated useful lives, in years:

          Building improvements      15-40
          Machinery and equipment     3-10
          Vehicles                     3-8

     Construction in process consists primarily of capital expenditures for
     plant renovations and vehicle re-builds. Maintenance and repairs are
     charged to expense when incurred.

     Purchased Routes and Acquisition Intangibles

     The Company's acquisitions of rental operations and routes have generally
     been accounted for by using the purchase method. The purchase method
     allocates the amounts paid to the net assets acquired based on their
     respective fair values. The amounts paid in excess of fair value of the
     acquired net assets are amortized on a straight-line basis over 15-40
     years. The Company assesses the recoverability of purchased routes and
     acquisition intangibles by determining whether the amortization of such
     assets over the remaining life can be recovered through undiscounted future
     operating cash flows and reviews for impairment whenever events or changes
     in circumstances, (e.g., plant closures), indicate that the carrying amount
     of an asset may not be fully recoverable.

     Routes acquired prior to November 1, 1970 are carried at a cost of
     $764,310. These intangibles are also regularly evaluated, and, in the
     opinion of management, have not diminished in value, and accordingly, have
     not been amortized.

     The Company has certain contracts with non-compete arrangements, which are
     charged to operations on a straight-line basis over the periods of the
     respective agreements, which range from 5 to 10 years.

     Deferred Financing Costs

     Deferred financing costs incurred in obtaining long-term debt are stated at
     cost less accumulated amortization. Amortization of deferred financing
     costs is provided using the effective interest write-off method over the
     term of the obligation.

     Concentrations of Credit Risk

     Financial instruments that potentially subject the Company to significant
     concentrations of credit risk consist principally of cash and accounts
     receivable. The Company places its cash investments with high quality
     financial institutions and limits the amount of credit exposure to any one
     institution. The Company's trade accounts receivable reflect a broad
     customer base. The Company routinely assesses the financial strength of its
     customers. As a result, concentrations of credit risk are limited.

                                       8
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

     Other Liabilities

     The Company, under certain insurance programs, retains portions of expected
     losses primarily relating to workers' compensation and employee medical
     insurance. A provision for claims under the self-insured program is
     recorded based upon the Company's estimate, after consultation with
     insurance advisors, of the aggregate liability for claims incurred. These
     liabilities are classified in the balance sheet as Other accrued expenses
     and Other liabilities. Amounts that the company anticipates will be due
     within one year have been classified as current liabilities.

     Derivative Instruments and Hedging Activities

     The company maintains an interest-rate risk-management strategy that uses
     interest rate swaps to minimize significant, unanticipated earnings
     fluctuations caused by interest-rate volatility. The Company's specific
     goals are (1) to manage interest-rate sensitivity by modifying the
     repricing or maturity characteristics of certain of its debt and (2) to
     lower, (where possible), the cost of its borrowed funds. The Company uses
     interest-rate swaps to convert a portion of its variable-rate debt to fixed
     rates. The resulting cost of funds is lower than it would have been had
     fixed-rate borrowing been issued directly.

     The Company adopted Statement of Financial Accounting Standards No. 133
     (SFAS 133), Accounting for Derivative Instruments and Hedging Activities,
     on November 1, 2000. Under SFAS 133, the Company's existing interest rate
     swaps have been designated as highly effective cash flow hedges. In
     accordance with the transition provisions of SFAS 133, the Company recorded
     a net-of-tax cumulative-effect-type adjustment of $9,934 in other
     comprehensive income to recognize this cash flow hedge at fair value.

     Fair Value of Financial Instruments

     The carrying amount of cash, accounts receivable and trade accounts payable
     approximates fair value because of the short maturity of these instruments.
     The fair value of the Company's senior subordinated notes as of October 31,
     2001 was approximately $18,650,000 based on market values. The fair value
     of the Company's other long-term obligations approximated their carrying
     value at October 31, 2001.

     Advertising Costs

     Advertising costs are charged to operations when incurred. The costs of
     direct-response advertising are not material.

     Income Taxes

     The Company and its subsidiaries file a consolidated federal income tax
     return, and, where required, state income tax returns. Provisions for
     deferred taxes are recognized based on the difference between the financial
     statement and tax basis of assets and liabilities using enacted tax rates
     in effect in the years in which the differences are expected to reverse.

     Reclassification

     Certain prior year amounts have been reclassified to conform with current
     year presentation.

                                       9
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

     Impact of Recently Issued Accounting Standards

     In June 2001, the Financial Accounting Standards Board issued Statements of
     Financial Accounting Standards No. 141, Business Combinations, (SFAS No.
     141), and No. 142, Goodwill and Other Intangible Assets, (SFAS No. 142),
     which are effective July 1, 2001 and November 1, 2002, respectively, for
     the Company. SFAS No. 142 allows for early adoption, as of November 1,
     2001, by the Company. SFAS No. 141 requires that the purchase method of
     accounting be used for all business combinations initiated after June 30,
     2001. Under SFAS No. 142, amortization of goodwill, including goodwill
     recorded in past business combinations, will discontinue upon adoption of
     this standard. In addition, goodwill recorded as a result of business
     combinations completed during the six-month period ending December 31,
     2001, will not be amortized. All goodwill and intangible assets will be
     tested for impairment in accordance with the provisions of the statement.
     The Company is currently reviewing the provisions of SFAS No. 141 and SFAS
     No. 142 and assessing the impact of adoption.

     In October, 2001 the Financial Accounting Standards Board issued Statements
     of Financial Accounting Standards No. 144, Accounting for the Impairment or
     Disposal of Long-Lived Assets,(SFAS No. 144), which is effective November
     1, 2002 for the Company. SFAS No. 144 outlines the requirements used to
     test long-lived assets, other than goodwill and intangibles not being
     amortized, for impairment. In addition, the statement proscribes accounting
     and reporting for long-lived assets or groups of assets to be disposed. The
     Company is currently reviewing the provisions of SFAS No. 144 and assessing
     the impact of adoption.

2.   Liquidity

     The Company is highly leveraged with total indebtedness of $99,833,395 and
     a shareholder deficit of $11,785,101. In addition, the Company has incurred
     net losses for the last three years, is required to maintain certain
     financial covenants as part of its existing credit facility, (the
     Facility), and is dependent on operations for a major portion of its
     liquidity and working capital needs. These facts create an uncertainty
     about the Company's ability to continue as a going concern. The financial
     statements do not include any adjustments that might result from the
     outcome of this uncertainty.

     The Company's primary source of liquidity has been cash flows from
     operations and borrowing under the Facility, which was amended in fiscal
     2001. The amendments reduced the maximum credit available to the Company
     under an acquisition and capital expenditure facility and amended certain
     financial covenants so that the Company would be in compliance. The maximum
     credit available under the Company's revolving credit facility, (the
     Revolver), subject to collateral availability, is $30,000,000. At October
     31, 2001, the Company had approximately $2,500,000 available under the
     Revolver. Management is pursuing alternative senior credit facilities from
     other lenders, with the goal of providing additional liquidity. Over the
     next twelve months, the Company will continue to focus on improving
     utilization of new inventory and merchandise in service as well as
     controlling overall costs and capital expenditures to improve liquidity and
     to meet its financial covenants. The Company does not anticipate the need
     to increase levels of inventory or capital expenditures in 2002. Based on
     the Company's operating budget, the Company expects that it will be able to
     meet its obligations as they become due and maintain compliance with
     current financing agreements, but there can be no assurances.

                                      10
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

3.   Acquisitions

     During 2001, 2000 and 1999 the company acquired certain assets of
     industrial laundries in transactions accounted for as purchase
     transactions. The aggregate cash purchase price of these assets was
     allocated as follows:

                                           2001          2000           1999
                                           ----          ----           ----

     Purchased routes                   $  12,632     $  955,860     $  939,645
     Covenants not to compete              25,000         11,827        527,407
     Rental Garments                       12,880        145,670        120,755
     Equipment                                             1,800
                                        ---------     ----------     ----------

       Aggregate cash purchases price   $  50,512     $1,115,157     $1,587,807
                                        =========     ==========     ==========

4.   Purchased Routes and Acquisition Intangibles

     The components of purchased routes and acquisition intangibles are as
     follows at October 31:

                                            2001          2000
                                            ----          ----

     Purchased routes                   $22,853,998    $22,870,945
     Covenants not to compete             2,012,748      1,945,288
                                        -----------    -----------
                                         24,866,746     24,816,233
     Less: Accumulated amortization      (8,354,480)    (7,576,291)
                                        -----------    -----------
                                        $16,512,266    $17,239,942
                                        ===========    ===========

                                      11
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

5.   Leases

     Assets under capital leases, consisting primarily of machinery and
     equipment, are as follows at October 31:

                                                   2001              2000
                                             ---------------    --------------

     Cost                                    $     7,943,705    $    7,943,705
     Less: Accumulated Amortization               (5,247,749)       (4,174,348)
                                             ---------------    --------------
                                             $     2,695,956    $   3,769, 357
                                             ===============    ==============




     The Company has noncancellable operating lease commitments for certain
     operating facilities, equipment, and vehicles.  Rent expense under
     operating leases approximated $2,270,000, $1,896,000 and $1,969,000 during
     2001, 2000, and 1999, respectively.  Minimum annual rental commitments at
     October 31, 2001 are as follows:

     2002                                                       $    1,439,217
     2003                                                              724,562
     2004                                                              428,387
     2005                                                              224,951
     2006                                                              103,975
                                                                --------------
     Total Minimum Lease Payments                               $   3,769, 357
                                                                ==============


                                      12
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

6.   Long-Term Obligations

     Long-Term Obligations consist of the following at October 31:

<TABLE>
<CAPTION>
                                                                                   2001               2000
                                                                              ---------------    ---------------
     <S>                                                                      <C>                <C>
     Revolving credit facility borrowings, at variable rates of 6.125%
       and 8.87% at October 31, 2001 and 2000, respectively                   $     15,271,34    $        19,061
     Capital expenditure facility borrowings, at variable rates of 6.375%
       and 9.12% at October 31, 2001 and 2000, respectively payable in
       various installments through 2003                                            4,207,826          4,347,629
     Acquisition facility borrowings, at variable rates of 6.375% and
       9.12% at October 31, 2001 and 2000, respectively, payable                      600,557          1,201,113
     Capital lease obligations, at a fixed rate of 7.6% at October 31, 2001
       and a variable rate of 8.2% at October 31, 2000, payable in
       installments through 2003                                                    1,999,972          3,160,299
     Industrial Development Revenue Bonds, at a fixed rate of 8.95% at
       October 31, 2001 and a variable rate of 10% at October 31, 2000
       payable in installments through 2010                                         2,312,738          2,383,514
     Other debt obligations, at various rates ranging from 6% to 10.3%,
     payable through                                                                  442,958          1,043,321
     Senior subordinated notes due June 1, 2008. Interest only at 11.25
       payable semi-annually June 1 and December 1                                 75,000,000         75,000,000
                                                                              ---------------    ---------------
                                                                                   99,833.395        106,196,911
     Less: Current maturities                                                      (3,370,926)        (3,385,619)
                                                                              ---------------    ---------------
                                                                              $    96,102,469    $   102,811,292
                                                                              ---------------    ---------------
</TABLE>

(a)  Under the Company's existing credit facility, (the Facility), a revolving
     credit facility, (the Revolver), is available to the Company through
     November 1, 2003, extending automatically for successive periods of one
     year each, at the discretion of the lender, but in no event later than
     November 1, 2008. Collateral pledged under the Facility includes all
     inventory, rental merchandise in service and accounts receivable.

     The terms of the Facility include various covenants, which provide, among
     other things, for the maintenance of certain minimum levels of cash flow
     and limitations on fixed charges and capital expenditures at defined
     measurement dates. As of October 31, 2001, the Company was in compliance
     with all debt covenants.

     In addition, the Facility includes a material adverse change clause which
     permits the Bank to call its debt in the event of a material adverse change
     in the business. Management does not anticipate any such material adverse
     changes in the next twelve months; however, there can be no assurances.

                                       13
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

6.  Long-Term Obligations (continued)

       The Agreement also provides for an acquisition facility of up to $600,557
       and a capital expenditure facility of up to $4,942,000. The Agreement
       calls for annual mandatory prepayments of these facilities if sufficient
       excess cash flow is generated. A mandatory prepayment is not required in
       fiscal 2001 based upon financial results for the year ended October 31,
       2001. In the event of termination of the Revolver, all unpaid balances
       under the acquisition and capital expenditure facilities will become due.

       The $75,000,000 11-1/4% Senior Subordinated Notes, (the Notes), are
       redeemable at the option of the Company after May 31, 2003 at redemption
       prices beginning at 105.625% and declining to 100.0% in 2006. The Notes
       includes covenants which restrict the ability of the Company to incur
       additional indebtedness, pay dividends, issue preferred stock and make
       certain restricted payments, as defined.

    At October 31, 2001, payments due on all debt obligations for each of the
    next five years and thereafter are as follows:


                               Long-Term       Capital Lease     Total Long-Term
                                  Debt          Obligations        Obligations
                              ------------     -------------     ---------------
    2002                      $  2,561,523     $   1,169,403     $     3,730,926
    2003                        18,121,924           828,569          18,950,493
    2004                            92,049                                92,049
    2005                            97,839                                97,839
    2006                           110,096                               110,096
    2007 and thereafter         76,851,992                            76,851,992
                              ------------     -------------     ---------------
                              $ 97,835,423     $   1,997,972     $    99,833,395
                              ============     =============     ===============

                                       14
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

7.   Income Taxes

     Other

     The components of income tax expense (benefit) for the years ended October
     31, were as follows:
                                             2001          2000        1999
                                          -----------    --------    ---------

     Current:
          Federal                                          76,310
          State                                55,936      56,253       70,000
                                          -----------    --------    ---------
                                               55,936     132,563       70,000
     Deferred                              (1,639,392)    497,437     (125,000)
                                          -----------    --------    ---------
           Income tax expense (benefit)    (1,583,456)    630,000      (55,000)
                                          ===========    ========    =========



     For income tax purposes, the Company has net operating loss and alternative
     minimum tax (AMT) credit carryforwards of $13,591,072 and $1,858,619,
     respectively. The net operating loss carryforwards expire through 2021 and
     the AMT credit is available indefinitely. Realization of the deferred
     income tax assets relating to these net operating losses is dependent on
     generating sufficient taxable income prior to the expiration of the loss
     carryforwards. Based upon results of operations or through the reversal of
     future taxable income, management believes it is more likely than not that
     the Company will generate sufficient future taxable income to fully realize
     the benefit of the net operating loss carryforwards and existing temporary
     differences, although there can be no assurance of this.


     A reconciliation of the federal statutory income tax rate and the Company's
     effective income tax rate is as follows:

                                                2001        2000       1999
                                               ------      -----      ------

     Statutory tax rate (recoverable)           (34.0) %    34.0 %     (34.0) %
     State taxes, net of federal benefit          0.9  %    24.9 %       3.8  %
     Non-deductible items                         2.7  %    78.0 %      29.5  %
     Other                                       (7.9) %     3.7 %      (4.8) %
                                               ------      -----      ------
                                                (38.3) %   140.6 %      (5.5) %
                                               ======      =====      ======


     Non-deductible items include amortization of certain purchased routes and
     other intangibles, and a portion of meals and entertainment expenses.

                                      15
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

7.   Income Taxes (continued)

     The tax effects of temporary differences that give rise to deferred tax
     assets (liabilities) at October 31, were as follows:

<TABLE>
<CAPTION>
                                                              2001           2000
                                                          -----------    -----------
<S>                                                       <C>            <C>
        Current:
          Inventory                                            99,832         50,302
          Accrued Expenses                                  1,196,143        680,356
                                                          -----------    -----------
               Total current deferred tax asset             1,295,975        730,658

          Rental garments in service                       11,988,953     12,762,718
                                                          -----------    -----------
               Total current deferred tax liability        11,988,953     12,762,718
                                                          -----------    -----------
               Net current deferred tax liability         (10,692,978)   (12,032,060)
                                                          ===========    ===========


        Non-current
          Other reserves                                    1,787,734      1,715,059
          Alternative minimum tax credit carryforward       1,858,619      1,860,000
          Net operating loss  carryforward                  5,428,274      5,249,040
                                                          -----------    -----------
               Total non-current deferred tax asset         9,074,627      8,824,099

          Fixed assets                                      4,819,439      5,099,476
          Other                                                57,995
                                                          -----------    -----------
               Total non-current deferred tax liabilities   4,877,434      5,099,476
                                                          -----------    -----------
               Net non-current deferred tax asset           4,197,193      3,724,623
                                                          ===========    ===========
</TABLE>

8.   Commitments and Contingent Liabilities

     The Company and its operations are subject to various federal, state and
     local regulations relating to environmental matters, including laws which
     require the investigation and, in some cases, remediation of environmental
     contamination. The Company's policy is to accrue and charge to operations
     environmental investigation and remediation expenses on an undiscounted
     basis when it is probable that a liability has been incurred and an amount
     is reasonably estimable.

     Certain claims have been filed or are pending against the Company,
     including outstanding audits with taxing authorities, arising from the
     conduct of its business. In the opinion of management, all matters are
     without merit and the Company intends to defend such claims vigorously.
     Based on information currently available, management believes that the
     outcome of any such claims will not have a material adverse effect on its
     business, financial condition or results of operations.

                                      16
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

9.   Related Party Transactions

     Shareholder Redemptions

     The Company, under the indenture for its senior subordinated notes, is
     permitted to redeem equity interests of the Company in order to satisfy
     estate-planning obligations of the estate of the principal shareholder.
     However, under the provisions of the indenture, the annual redemptions are
     not permitted to exceed $1.0 million in each of the second, third, fourth,
     fifth and sixth calendar years and $2.25 million in each of the seventh,
     eighth, ninth and tenth calendar years following the death of the
     shareholder, plus an additional $2.0 million in calendar year 2003, subject
     to certain provisions. There were no redemptions in Fiscal 2001.

     Other

     Included in shareholder receivables is an outstanding note receivable from
     the estate of J. Stanley Coyne in the amount of $1,264,355. This note bears
     interest at the Applicable Federal Rate as defined by the Internal Revenue
     Service, 3.6%, at October 31, 2001. Interest income on the note was not
     recognized during the fiscal years ended October 31, 2001, 2000 and 1999.
     The total amount due as of October 31, 2001 is approximately $1,648,000.
     It is anticipated that this receivable will be settled through the
     redemption of stock held by the estate.

     Included in shareholder receivables at October 31, 2001 and 2000 are a note
     receivable and outstanding advances, of approximately $452.000 and $445.000
     respectively. These monies are due from Thomas M. Coyne, Chairman of the
     Board and President of the Company. The note receivable and advances are
     uncollateralized. Interest on the note accrues at 10% and is payable
     annually. The note matures August 31, 2007. Interest income accrued of
     $32,500 in both 2001 and 2000 is included in interest expense.

                                      17
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

9.   Related Party Transactions (continued)

     During fiscal 2001 and 2000, the Company made premium payments of $355,000
     and $356,000, respectively, pursuant to a split-dollar life insurance
     agreement (the "agreement"), between the Company and Thomas M. Coyne. The
     agreement relates to insurance policies on the life of Thomas M. Coyne and
     provides for a collateral assignment of such policies to the Company
     entitling it to recover the aggregate amount of premiums paid under the
     agreement. Furthermore, the Company is permitted to terminate the agreement
     at any time. As of October 31, 2001, the Company has paid aggregate
     premiums of $711,000 under this agreement. However, this recoverable amount
     is not reflected on the Company's balance sheet.

     As of October 31, 2001 and 2000, there are approximately $539,000 and
     $257,000, respectively, of loans receivable from certain related family
     members as a result of monthly cash advances. The advances are unsecured.
     The advances have no defined repayment terms, however, it is anticipated
     that these advances will be settled through redemptions of stock held by
     the estate of J. Stanley Coyne.

10.  Pension Plans

     All full-time non-union and certain union employees are eligible to
     participate in the Company's 401(k) plan after one year of service. The
     Company matches a portion of the employees' salary reduction contributions
     and can make an additional contribution at its discretion. The Company
     contributions under the 401(k) plan, which vest over a five-year employment
     period, were approximately $236,000, $421,000 and $719,000 in 2001, 2000
     and 1999, respectively. Certain employees of the Company are covered by
     union sponsored, collectively bargained,  multi-employer pension plans.
     The Company charged to expense $1,366,000, $1,390,000 and $1,430,000 in
     2001, 2000 and 1999, respectively, for such plans.

     The Company maintains a defined benefit plan for certain employees at one
     of its plants. The most recent valuation stated an accumulated plan benefit
     obligation for both years of approximately $650,000 and plan assets with a
     fair market value of approximately $1,068,000 in 2001 and $1,323,000 in
     2000. Benefit costs of this plan are not material to the operating results
     of the Company.

11.  Fiscal Year 2000 Fourth Quarter Adjustments

     In the fourth quarter of fiscal 2000, the Company recognized the effect of
     certain adjustments, which resulted in an increase to net income. These
     adjustments, on a pre-tax basis, relate to the receipt of life insurance
     death benefits of $165,000, reversal of accruals for deferred compensation
     arrangements and discretionary contributions to a benefit plan no longer
     required of $1,055,000. In aggregate the impact of these adjustments is an
     increase to net income of $732,000, net of taxes of $488,000.

                                      18
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

12.  Summarized Financial Information of Certain Subsidiaries

     The Notes are jointly and severally guaranteed by the following wholly-
     owned subsidiaries of the Company, (the Subsidiary Guarantors): Blue Ridge
     Textile Manufacturing, Inc. and Ohio Garment Rental Inc. The following
     consolidating financial statements for the Company segregate the financial
     information of Coyne International Enterprises Corp. (the Parent Company)
     and the Subsidiary Guarantors.

                                      19
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Balance Sheet

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------

                                                                                       October 31, 2001
                                                            ----------------------------------------------------------------------
                                                                Parent          Subsidiary     Consolidating         Consolidated
   Assets                                                       Company         Guarantors      Adjustments             Totals
   ------                                                   ----------------  --------------  ---------------      ----------------
  <S>                                                       <C>               <C>             <C>                  <C>
   Current Assets:
        Cash and cash equivalents                           $       335, 682  $     (216,163)                      $        119,519
        Accounts receivable, less allowance for
          doubtful accounts of $840,621 in 2001
          and $341,343 in 2000                                    13,470,773       1,982,566                             15,453,339
        Inventories                                                4,353,668       2,344,030                              6,697,698
        Rental merchandise in service                             27,707,131       3,694,245                             31,401,376
        Prepaid expenses and other assets                          9,766,827          70,282       (9,289,825)              547,284
                                                            ----------------  --------------     ------------      ----------------
               Total current assets                               55,634,081       7,874,960       (9,289,825)           54,219,216

   Property, plant and equipment, at cost:                        91,908,712       8,962,811                            100,871,523
        Less:  Accumulated depreciation                          (53,423,049)     (5,813,295)                           (59,236,344)
                                                            ----------------  --------------     ------------      ----------------
               Property, plant and equipment, net                 38,485,663       3,149,516                0            41,635,179


   Other assets:
        Purchased routes and acquisitions intangibles, net        16,251,810         260,456                             16,512,266
        Deferred financing costs, net                              2,169,933                                              2,169,933
        Deferred income taxes                                      4,197,193                                              4,197,193
        Other                                                        246,965                                                246,965
                                                            ----------------  --------------     ------------      ----------------
               Total other assets                                 22,865,901         260,456                0            23,126,357

                                                            ----------------  --------------     ------------      ----------------
                                                            $    116,985,645  $   11,284,932     $ (9,289,825)     $    118,980,752
                                                            ================  ==============     ============      ================

Liabilities and Shareholders' Equity (Deficit)
---------------------------------------------

   Current Liabilities:
        Current maturities of long-term obligations         $      3,730,926                                       $      3,730,936
        Accounts payable                                           4,623,596         528,986                              5,152,582
        Accrued expenses:
          Salaries and employee benefits                           3,509,064         100,776                              3,609,840
          Accrued interest                                         3,503,660               0                              3,503,660
          Other                                                    3,434,970       1,365,345                              4,800,315
        Deferred income taxes                                     10,692,978               0                             10,692,978
                                                            ----------------  --------------     ------------      ----------------
               Total current liabilities                          29,495,194       1,995,107                0            31,490,301

   Long-term obligations, net of current maturities               96,102,469                                             96,102,469
   Other liabilities                                               3,173,083       3,984,102       (3,984,102)            3,173,083
                                                            ----------------  --------------     ------------      ----------------
               Total liabilities                                 128,770,746       5,979,209       (3,984,102)          130,765,853
                                                            ----------------  --------------     ------------      ----------------

   Shareholders' equity (deficit):
        Preferred stock                                            3,806,200                                              3,806,200
        Common stock                                                     769       1,250,019       (1,250,019)                  769
        Additional paid-in capital                                 1,682,845         298,981         (298,981)            1,682,845
        Retained earnings (deficit)                              (14,767,786)      3,756,723       (3,756,723)          (14,767,786)
        Accumulated other comprehensive loss                        (259,037)                                              (259,037)
                                                            ----------------  --------------     ------------      ----------------
                                                                  (9,537,009)      5,305,723       (5,305,723)           (9,537,009)

   Less:
        Shareholder receivables                                   (2,248,092)                                            (2,248,092)
                                                            ----------------  --------------     ------------      ----------------
               Total shareholders' equity (deficit)              (11,785,101)      5,305,723       (5,305,723)          (11,785,101)
                                                            ----------------  --------------     ------------      ----------------
                                                                 116,985,645  $   11,284,932     $  9,289,825      $    118,980,752
                                                            ================  ==============     ============      ================
</TABLE>

                                      20
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Balance Sheet
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                  October 31, 2000
                                                             ----------------------------------------------------------
                                                                 Parent      Subsidiary   Consolidating   Consolidated
Assets                                                          Company      Guarantors    Adjustments       Totals
------                                                       ------------  ------------   ------------    -------------
<S>                                                          <C>           <C>            <C>             <C>
Current Assets:
     Cash and cash equivalents                               $    955,728  $    (46,388)                  $     909,340
     Accounts receivable, less allowance for doubtful
        accounts of $341,343 in 2000                           15,243,854     1,686,121                      16,929,975
     Inventories                                                9,487,201     3,237,940                      12,725,141
     Rental merchandise in service                             30,643,937     2,069,030                      32,712,967
     Prepaid expenses and other assets                         10,035,907        14,628     (9,351,767)         698,768
                                                             ------------  ------------   ------------    -------------
            Total current assets                               66,366,627     6,961,331     (9,351,767)      63,976,191

Property, plant and equipment, at cost;                        89,059,067     8,858,737                      97,917,804
     Less:  Accumulated depreciation                          (48,572,337)   (5,528,363)                    (54,100,700)
                                                             ------------  ------------   ------------    -------------
            Property, plant and equipment, net                 40,486,730     3,330,374              0       43,817,104

Other assets
   Purchased routes and acquisition intangibles, net           16,968,910       271,032                      17,239,942
   Deferred financing costs, net                                2,322,568                                     2,322,568
   Deferred income taxes                                        3,724,623                                     3,724,623
   Other                                                          202,521                                       202,521
                                                             ------------  ------------   ------------    -------------
            Total other assets                                 23,218,622       271,032              0       23,489,654

                                                             ------------  ------------   ------------    -------------
                                                             $130,071,979  $ 10,562,737   $ (9,351,767)   $ 131,282,949
                                                             ============  ============   ============    =============

Liabilities and Shareholders' Equity (Deficit)
---------------------------------------------

Current Liabilities:
     Current maturities of long-term obligations             $  3,385,619                                 $   3,385,619
     Accounts payable                                           8,256,569       678,116                       8,934,685
     Accrued expenses:
          Salaries and employee benefits                        4,635,123        79,273                       4,714,396
          Accrued interest                                      3,655,175                                     3,655,175
          Other                                                 1,814,620       453,581                       2,268,201
     Deferred income taxes                                     12,032,060                                    12,032,060
                                                             ------------  ------------   ------------    -------------
            Total current liabilities                          33,779,166     1,210,970              0       34,990,136

Long-term obligations, net of current maturities              102,811,292                                   102,811,292
Other liabilities                                               2,170,095     3,645,867     (3,645,867)       2,170,095
                                                             ------------  ------------   ------------    -------------
            Total liabilities                                 138,760,553     4,856,837     (3,645,867)     139,971,523
                                                             ------------  ------------   ------------    -------------

Shareholders' equity (deficit):
     Preferred stock                                            4,806,200                                     4,806,200
     Common stock                                                     769     1,250,019     (1,250,019)             769
     Additional paid-in capital                                   849,512       298,981       (298,981)         849,512
     Retained earnings (deficit)                              (12,212,139)    4,156,900     (4,156,900)     (12,212,139)
                                                             ------------  ------------   ------------    -------------
                                                               (6,555,658)    5,705,900     (5,705,900)      (6,555,658)

     Less:
          Treasury stock, 2,000 shares of Class B
             preferred stock at a cost                           (166,667)                                     (166,667)
          Shareholder receivables                              (1,966,249)                                   (1,966,249)
                                                             ------------  ------------   ------------    -------------
             Total shareholders' equity (deficit)              (8,688,574)    5,705,900     (5,705,900)      (8,688,574)
                                                             ------------  ------------   ------------    -------------
                                                              130,071,979  $ 10,562,737   $ (9,351,767)   $ 131,282,949
                                                             ============  ============   ============    =============
</TABLE>

                                      21
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Statement of Operations
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                          Year Ended October 31, 2001
                                                             --------------------------------------------------------------
                                                                Parent         Subsidiary      Consolidating   Consolidated
                                                               Company        Guarantors        Adjustments       Totals
                                                             -----------      -----------     --------------   ------------
<S>                                                          <C>              <C>             <C>              <C>
   Revenue:
     Rental operations                                       131,428,405      10,052,312                        141,480,717
     Direct sales                                              4,361,519      12,290,066     (7,112,437)          9,539,148
                                                             -----------      -----------   -----------         -----------
                                                             135,789,924      22,342,378     (7,112,437)        151,019,865
                                                             -----------      -----------   -----------         -----------
   Operating expenses:
     Cost of rental operations                                97,567,579       8,286,741                        105,854,320
     Cost of direct sales                                      2,463,348      10,460,623     (6,979,880)          5,944,091
     Selling, general and administrative                      22,623,468       3,153,859        (10,239)         25,767,088
     Depreciation and amortization                             5,799,710         318,837                          6,118,547
                                                             -----------     -----------    -----------         -----------
                                                             128,454,105      22,220,060     (6,990,011)        143,684,046
                                                             -----------     -----------    -----------         -----------
        Income (loss) from operations                          7,335,819         122,318       (122,318)          7,335,819

   Interest expense                                           11,474,922         789,280       (789,280)         11,474,922
                                                             -----------     -----------    -----------         -----------
        Income (loss) before income tax                       (4,139,103)       (666,962)       666,962          (4,139,103)

   Income tax expense (benefit)                               (1,583,456)       (266,785)       266,785          (1,583,456)
                                                            ------------     -----------    -----------         -----------
        Net income (loss)                                     (2,555,647)       (400,177)       400,177          (2,555,647)
                                                            ============     ===========    ===========         ===========
</TABLE>

                                      22
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Statement of Operations
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                            Year Ended October 31, 2000
                                                           -----------------------------------------------------------
                                                              Parent      Subsidiary    Consolidating    Consolidated
                                                              Company     Guarantors     Adjustments        Totals
                                                           -----------   -----------    -------------    ------------
<S>                                                        <C>           <C>            <C>              <C>
Revenue:
     Rental operations                                     131,017,860     9,300,505                      140,318,365
     Direct sales                                            4,459,602    15,507,434       (9,994,929)      9,972,107
                                                          ------------   -----------    -------------    ------------
                                                           135,477,462    24,807,939       (9,994,929     150,290,472
                                                          ------------   -----------    -------------    ------------
Operating expenses:
     Cost of rental operations                              95,309,874     7,222,093                      102,531,967
     Cost of direct sales                                    2,701,020    13,109,779       (9,922,045)      5,888,754
     Selling, general and administrative                    19,735,008     2,864,804        1,144,046      23,743,858
     Depreciation and amortization                           6,075,172       394,333                        6,469,50
                                                          ------------   -----------    -------------    ------------
                                                           123,821,074    23,591,009       (8,777,999)    138,634,084
                                                          ------------   -----------    -------------    ------------

          Income from operations                            11,656,388     1,216,930       (1,216,930)     11,656,388

Interest expense                                            11,208,439       706,327         (706,327)     11,208,439
                                                          ------------   -----------    -------------    ------------
          Income (loss) before income taxes                    447,949       510,603         (510,603)        447,949

Income tax expense (benefit)                                   630,000       204,241         (204,241)        630,000

                                                          ------------   -----------    -------------    ------------
          Net income (loss)                                   (182,031)      306,362         (306,362)       (182,051)
                                                          ============   ===========    =============    ============
</TABLE>

                                      23
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Statement of Operations
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                       Year Ended October 31, 1999
                                                       ----------------------------------------------------------
                                                          Parent      Subsidiary     Consolidating   Consolidated
                                                          Company     Guarantors      Adjustments      Totals
                                                       ------------  ------------   -------------   -------------
<S>                                                    <C>           <C>            <C>             <C>
Revenue:
   Rental operations                                    125,979,263     9,792,627                     135,771,890
   Direct sales                                           3,578,012    18,162,120     (11,300,300)     10,439,832
                                                       ------------  ------------   -------------   -------------
                                                        132,191,048    27,954,747     (11,300,300)    146,211,722
                                                       ------------  ------------   -------------   -------------

Operating expenses:
   Cost of rental operations                             91,535,652     7,276,617                      98,812,269
   Cost of direct sales                                   2,237,438    15,533,086     (10,863,267)      6,907,257
   Selling, general and administrative                   20,472,050     3,055,381      (1,323,798)     24,851,229
   Depreciation and amortization                          5,476,867       328,832                       5,805,699
                                                       ------------  ------------   -------------   -------------
                                                        122,355,780    26,193,916      (9,539,469)    136,376,454
                                                       ------------   ------------  -------------   -------------

       Income from operations                             9,835,268     1,760,831      (1,760,831)      9,835,268
Interest expense                                         10,841,533       773,790        (773,790)     10,841,533
                                                       ------------  ------------   -------------   -------------
       Income (loss) before income taxes                 (1,006,265)      987,041        (987,041)     (1,006,265)

Income tax expense (benefit)                                (55,000)      394,816        (394,816)        (55,000)
                                                       ------------  ------------   -------------   -------------
       Net income (loss)                                   (951,265)      592,225        (592,225)       (951,265)
                                                       ============  ============   =============   =============
</TABLE>

                                      24
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Statement of Cash Flows
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                               Year ended October 31, 2001
                                                               -------------------------------------------------------------
                                                                  Parent       Subsidiary     Consolidating    Consolidated
                                                                  Company      Guarantors     Adjustments        Totals
                                                               ------------  -------------- ---------------  ---------------
<S>                                                            <C>           <C>            <C>              <C>
Cash flows from operating activities:
   Net income (loss)                                           $ (2,555,647) $    (400,177) $    400,177     $   (2,555,647)
   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities:
      Depreciation of property, plant and equipment               3,960,412        318,837                        4,279,249
      Amortization or capitalized leases                          1,073,401                                       1,073,401
      Amortization or acquisition intangibles                       770,256          7,932                          778,188
      Amortization of deferred financing costs                      342,604                                         342,604
      Provision for deferred income taxes                        (1,639,392)                                     (1,639,392)
      Changes in operating assets and operating liabilities:
       Accounts receivable                                        1,773,081       (296,445)                       1,476,636
       Inventories                                                5,133,533        893,910                        6,027,443
       Rental merchandise in service                              2,936,806     (1,625,215)                       1,311,591
       Prepaid expenses and other assets                            224,637        (55,654)      (61,942)           107,040
       Account payable, accrued expenses, other liabilities      (4,206,593)     1,122,372      (338,235)        (3,422,456)
                                                               ------------  -------------  ------------     --------------
      Net cash provided by (used in) operating activities         7,813,098        (34,440)            0          9,090,440
                                                               ------------  -------------  ------------     --------------
Cash flows from investing activities:
   Purchase of property, plant and equipment                     (3,072,488)       (98,237)                      (3,170,725)
   Acquisition of business, net of cash acquired                    (50,512)                                        (50,512)
                                                               ------------  -------------  ------------     --------------
      Net cash used in investing activities                      (3,123,000)       (98,237)            0         (3,221,237)
                                                               ------------  -------------  ------------     --------------
Cash flows from financing activities:
   Proceeds from long-term borrowings                            38,268,038                                      38,268,038
   Payments under long-term obligations                         (44,631,555)                                    (44,631,555)
   Increase in bank overdrafts                                    1,488,087                                       1,488,087
   Other                                                           (471,811)                                       (471,811)
                                                               ------------  -------------  ------------     --------------
      Net cash provided by (used in) financing activities        (5,347,241)             0             0         (5,347,241)
                                                               ------------  -------------  ------------     --------------
      Net decrease in cash                                         (657,143)      (132,677)            0           (789,821)

Cash and cash equivalents:
   Beginning of period                                              955,728        (46,388)                         909,340
                                                               ------------  -------------  ------------     --------------
   End of period                                               $    298,585  $    (179,065) $          -     $      119,519
                                                               ============  =============  ============     ==============
</TABLE>

                                       25
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Statement of Cash Flows
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                         Year ended October 31, 2000
                                                           -----------------------------------------------------------
                                                            Parent         Subsidiary    Consolidating    Consolidated
                                                           Company         Guarantors     Adjustments       Totals
                                                           -------         ----------     -----------     ------------
<S>                                                        <C>             <C>           <C>              <C>
Cash flows from operating activities:
 Net income (loss)                                         $  (182,051)    $   306,362   $ (306,362)       $  (182,051)
 Adjustments to reconcile net income (loss) to net
  cash provided by (used in) operating activities:
   Depreciation of property, plant and equipment             4,211,478         394,333                       4,605,811
   Amortization of capitalized leases                        1,073,401                                       1,073,401
   Amortization of acquisition intangibles                     779,717          10,576                         790,293
   Amortization of deferred financing costs                    334,025                                         334,025
   Provision for deferred income taxes                         497,437                                         497,437
   Changes in operating assets and operating liabilities:
     Accounts receivable                                    (2,633,446)      2,472,429                        (161,017)
     Inventories                                            (4,346,904)       (861,172)                     (5,208,076)
     Rental merchandise in service                          (4,454,111)       (420,772)                     (4,874,883)
     Prepaid expenses and other assets                         131,474         (17,429)     225,555            339,600
     Accounts payable, accrued expenses,
      other liabilities                                        575,088      (1,643,400)      80,807           (987,505)
                                                           -----------     -----------   ----------        -----------
   Net cash provided by (used in) operating activities      (4,013,892)        240,927            0         (3,772,965)
                                                           -----------     -----------   ----------        -----------
Cash flows from investing activities:
 Purchase of property, plant and equipment                  (2,748,685)       (192,123)                     (2,940,808)
 Acquisition of business, net of cash acquired              (1,115,157)                                     (1,115,157)
                                                           -----------     -----------   ----------        -----------
   Net cash used in investing activities                    (3,863,842)       (192,123)           0         (4,055,965)
                                                           -----------     -----------   ----------        -----------
Cash flows from financing activities:
 Proceeds from long-term borrowings                         50,637,540                                      50,637,540
 Payments under long-term obligations                      (41,987,966)                                    (41,987,966)
 Other                                                        (124,711)                                       (124,711)
                                                           -----------     -----------   ----------        -----------
   Net cash provided by (used in) financing activities       8,524,863               0            0          8,524,863
                                                           -----------     -----------   ----------        -----------
   Net increase (decrease) in cash                             647,129          48,804            0            695,933

Cash and cash equivalents:
 Beginning of period                                           309,648         (96,241)                        213,407
                                                           -----------     -----------   ----------        -----------
 End of period                                             $   956,777     $   (47,437)  $        -        $   909,340
                                                           ===========     ===========   ==========        ===========
</TABLE>

                                      26
<PAGE>

Coyne International Enterprises Corp. and Subsidiaries

Consolidating Statement of Cash Flows
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                Year ended October 31, 1999
                                                                ----------------------------------------------------------
                                                                    Parent       Subsidiary   Consolidating   Consolidated
                                                                   Company       Guarantors    Adjustments       Totals
                                                                -------------  -------------  -------------  -------------
<S>                                                             <C>            <C>            <C>            <C>
Cash flows from operating activities:
 Net income (loss)                                               $  (951,265)   $   592,225    $  (592,223)   $  (951,265)
 Adjustments to reconcile net income (loss) to net
  cash provided by (used in) operating activities:
    Depreciation of property, plant and equipment                  3,702,041        328,832                     4,030,873
    Amortization of capitalized leases                             1,073,401                                    1,073,401
    Amortization of acquisition intangibles                          690,849         10,576                       701,425
    Amortization of deferred financing costs                         355,249                                      355,249
    Provision for deferred income taxes                             (125,000)                                    (125,000)
    Changes in operating assets and operating liabilities:
     Accounts receivable                                          (1,230,560)    (1,325,363)                   (2,555,923)
     Inventories                                                    (962,978)       437,976                      (525,002)
     Rental merchandise in service                                   599,936       (100,718)                      499,218
     Prepaid expenses and other assets                            (1,159,382)       (22,447)     1,290,471        108,642
     Accounts payable, accrued expenses, other liabilities        (3,055,870)       947,403       (698,246)    (2,806,713)
                                                                ------------   ------------   ------------   ------------
    Net cash provided by (used in) operating activities           (1,063,579)       868,484              0       (195,095)
                                                                ------------   ------------   ------------   ------------

Cash flows from investing activities:
 Purchase of property, plant and equipment                        (7,521,270)      (192,123)                   (7,713,393)
 Acquisition of business, net of cash acquired                    (1,467,052)                                  (1,467,052)
                                                                ------------   ------------   ------------   ------------
    Net cash used in investing activities                         (8,988,322)      (192,123)             0     (9,180,445)
                                                                ------------   ------------   ------------   ------------

Cash flows from financing activities:
 Proceeds from long-term borrowings                               50,558,770                                   50,558,770
 Payments under long-term obligations                            (41,549,085)                                 (41,549,085)
  Other                                                             (494,234)                                    (494,234)
                                                                ------------   ------------   ------------   ------------
    Net cash provided by (used in) operating activities            8,515,451              0              0      8,515,451
                                                                ------------   ------------   ------------   ------------
    Net increase (decrease) in cash                               (1,536,450)       676,361              0       (860,089)

Cash and cash equivalents:
 Beginning of period                                               1,294,046       (220,550)                    1,073,496
                                                                ------------   ------------   ------------   ------------
 End of period                                                   $  (242,404)   $   455,811    $        -     $   213,407
                                                                ============   ============   ============   ============
</TABLE>

                                      27
<PAGE>
Coyne International Enterprises Corp and Subsidiaries

Index to Exhibits
(Item 14(a)(3))

   Exhibit No.                             Description
-----------------    ---------------------------------

(a)  Exhibits

2.1            Articles of Merger of Clean Towel Services, Inc. into Coyne
               International Enterprises Corp.

2.2            Plan of Merger Clean Towel Services, Inc. into Coyne
               International Enterprises Corp.

2.4            Certificate of Merger of Midway-CTS Buffalo, Ltd. into Coyne
               International Enterprises Corp. Pursuant to Section 905 of the
               Business Corporation Law.

2.5            Plan to Merge Midway-CTS Buffalo into Coyne International
               Enterprises Corp. Pursuant to Section 905 of the Business
               Corporation Law.

3.1            Amended and Restated Articles of Incorporation of the Company*

3.2            Amended and Restated Bylaws of the Company**


<PAGE>

3.3       Articles of Incorporation of Blue Ridge Textile Manufacturing, Inc.**

3.4       Bylaws of Blue Ridge Textile Manufacturing, Inc.**

3.5       Articles of Incorporation of Ohio Garment Rental, Inc.**

3.6       Bylaws of Ohio Garment Rental, Inc.**

4.1       Indenture, dated as of June 26, 1998, by and among the Company, Blue
          Ridge Textile Manufacturing, Clean Towel Service, Inc., Ohio Garment
          Rental, Inc. and Midway-CTS Buffalo, Ltd., as guarantors, and IBJ
          Schroder Bank & Trust Company, as trustee**

4.2       Form of 113% Senior Subordinated Note due 2008**

10.1      Amended and Restated Financing Agreement, dated as of June 26, 1998,
          between the Company, Blue Ridge Textile Manufacturing, Inc., Clean
          Towel Service, Inc., Midway-CTS Buffalo, Ltd., Ohio Garment Rental,
          Inc. (collectively, the "Borrowers") and NationsBank, N.A. (the
          "Lender")**

10.2      Revolving Credit Note, dated as of June 26, 1998, between the
          Borrowers and the Lender**

10.3      Capital Expenditure Note, dated as of June 26, 1998, between the
          Borrowers and the Lender**

10.4      Acquisition Loan Note, dated as of June 26, 1998, between the
          Borrowers and the Lender**

10.5      Lease Purchase Agreement, dated as of December 1, 1994, between the
          Erie County Industrial Development Agency and Midway-CTS Buffalo,
          Ltd.**

10.6      Form of the $2,600,000 Industrial Development Revenue Bond issued by
          the Erie County Industrial Development Agency**

10.7      Lessee Guaranty Agreement, dated as of December 1, 1994 between
          Midway-CTS Buffalo, Ltd. and Key Bank of New York**

10.8      Purchase Agreement, dated as of June 23, 1998, by and among the
          Company, Blue Ridge Textile Manufacturing, Inc., Clean Towel Service,
          Inc., Midway-CTS Buffalo, Ltd., Ohio Garment Rental, Inc., NationsBank
          Montgomery Securities LLC and First Union Capital Markets, a division
          of Wheat First Securities, Inc.**

10.9      Registration Rights Agreement, dated as of June 26, 1998, by and among
          the Company, Blue Ridge Textile Manufacturing, Inc., Clean Towel
          Service, Inc., Ohio Garment Rental, Inc., Midway- CTS Buffalo, Inc.,
          NationsBank Montgomery Securities LLC and First Union Capital Markets,
          a division of Wheat First Securities, Inc.**


<PAGE>

10.10     Promissory Note dated September 27, 1994 from J. Stanley Coyne payable
          to the Company and related Mortgage Deed**

10.11     First Amendment to Amended and Restated Financing and Security
          Agreement***

10.12     Second Amendment to Amended and Restated Financing and Security
          Agreement***

10.13     Third Amendment to Amended and Restated Financing and Security
          Agreement

10.14     Fourth Amendment to Amended and Restated Financing and Security
          Agreement

10.15     Fifth Amendment to Amended and Restated Financing and Security
          Agreement

10.16     Sixth Amendment to Amended and Restated Financing and Security
          Agreement

21        Subsidiaries of the Company



*   Incorporated by reference to Amendment No. 2 of the Company's Registration
Statement on Form S-4 (Registration No. 333-60247), as amended, filed with the
Securities and Exchange Commission on October 27, 1998.

**  Incorporated by reference to Amendment No. 1 of the Company's Registration
Statement on Form S-4 (Registration No. 333-60247), as amended, filed with the
Securities and Exchange Commission on August 5, 1998.

*** Incorporated by reference to the Company's Annual Report on Form 10-K for
the fiscal year ending October 31, 1999.