================================================================================

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

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

                                    FORM 10-Q



              |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For The Quarterly Period Ended March 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 Number 0-29048


                           ACCENT COLOR SCIENCES, INC.
             (Exact name of registrant as specified in its charter)

          Connecticut                                06-1380314
   (State or other jurisdiction of                (I.R.S. Employer
   incorporation or organization)                 Identification No.)

           800 Connecticut Boulevard, East Hartford, Connecticut 06108
               (Address of principal executive office) (Zip Code)

       Registrant's telephone number, including area code: (860) 610-4000

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.                Yes |X| No |_|

     The number of shares  outstanding  of the  registrant's  common stock as of
April 30, 2001 was 27,163,007.



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<PAGE>

                           ACCENT COLOR SCIENCES, INC.

                                    FORM 10-Q

                  For The Quarterly Period Ended March 31, 2001

                                      INDEX

Part I.  Financial Information



Item 1.    Financial Statements.............................................   3

Item 2.    Management's Discussion and Analysis of Financial Condition and
           Results of Operations......... ..................................   9


Part II.  Other Information


Item 1.    Legal Proceedings................................................  12

Item 2.    Changes in Securities and Use of Proceeds........................  12

Item 3.    Defaults Upon Senior Securities..................................  12

Item 4.    Submission of Matters to a Vote of Security Holders..............  12

Item 5.    Other Information................................................  12

Item 6.    Exhibits and Reports on Form 8-K.................................  12



Signatures .................................................................  13

                                       2

<PAGE>


                           ACCENT COLOR SCIENCES, INC.
                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>


                                                                           March 31,              December 31,
                                                                            2001                     2000
                                                                           ----                      ----
                                                                           (unaudited)
<S>                                                                     <C>                       <C>
Assets
Current assets:
  Cash and cash equivalents                                             $    934,709              $  1,089,488
  Accounts receivable                                                        172,071                   915,405
  Inventories (Note 3)                                                       453,813                   682,682
  Prepaid expenses and other current assets                                   94,123                   122,725
                                                                        ------------              ------------

     Total current assets                                                  1,654,716                 2,810,300

Fixed assets, net                                                            696,243                   758,999
Other assets, net                                                             89,651                    77,171
                                                                        ------------              ------------

     Total assets                                                       $  2,440,610              $  3,646,470
                                                                        ============              ============
Liabilities and Shareholders' Equity (Deficit)
Current liabilities:
  Obligations under capital leases                                      $     44,134              $     53,052

  Short-term debt  (Notes 4 and 6)                                         2,500,000                 2,500,000
  Accounts payable                                                           733,924                   870,237
  Accrued expenses                                                         1,161,710                 1,441,733
                                                                        ------------              ------------

     Total current liabilities                                             4,439,768                 4,865,022
                                                                        ------------              ------------

Obligations under capital leases                                              58,774                    70,068
Other long-term liabilities                                                  122,083                   126,059
                                                                        ------------              ------------

     Total non-current liabilities                                           180,857                   196,127
                                                                        ------------              ------------

     Total liabilities                                                     4,620,625                 5,061,149
                                                                        ------------              ------------


Mandatorily redeemable convertible preferred stock (Note 5)                2,378,494                 2,378,494
                                                                        ------------              ------------

Shareholders' equity  (deficit)
     Common stock, no par value, 50,000,000 shares                        51,388,957                51,383,707
      authorized, 27,163,181 shares issued and outstanding
    Accumulated deficit                                                  (55,947,466)              (55,176,880)
                                                                        ------------              ------------

     Total shareholders' equity (deficit)                                 (4,558,509)               (3,793,173)
                                                                        ------------              ------------


     Total liabilities, convertible preferred stock and
     shareholders' equity (deficit)                                     $  2,440,610              $  3,646,470
                                                                        ============              ============
</TABLE>

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


                                       3
<PAGE>

                           ACCENT COLOR SCIENCES, INC.
                 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
                                                                   Three months ended March 31,
                                                                  2001                   2000
                                                                  ----                   ----
<S>                                                            <C>                   <C>
Revenue (Note 2)                                               $    558,209          $  1,146,026
Costs and expenses:
  Costs of production                                               559,752             1,253,598
  Research and development                                          244,316               682,329
  Marketing, general and administrative                             532,196               734,674
                                                               ------------          ------------

                                                                  1,336,264             2,670,601
                                                               ------------          ------------

Other (income) expense:
  Interest expense (Note 4)                                           4,273                97,199
  Interest income                                                   (11,742)              (25,461)
                                                               ------------          ------------
                                                                     (7,469)               71,738
                                                               ------------          ------------

Net loss                                                           (770,586)           (1,596,313)
                                                               ------------          ------------


Net loss applicable to common stock                            $   (770,586)         $ (1,596,313)
                                                               ============          ============

Net loss (basic and diluted) per common share:                 $       (.03)         $       (.07)
                                                               ============          ============

Weighted average common shares
  Outstanding                                                    27,163,181            21,816,455
                                                               ============          ============
</TABLE>

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


                                       4
<PAGE>

                           ACCENT COLOR SCIENCES, INC.
                 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>


                                                                          Three months ended March 31,
                                                                           2001                  2000
                                                                           ----                  ----
<S>                                                                    <C>                 <C>
Cash flows from operating activities:
  Net loss                                                             $  (770,586)        $(1,596,313)
  Adjustments  to  reconcile  net loss to net cash used
     in operating activities:
     Depreciation and amortization                                         107,557             191,753
     Expense  related to stock,  warrants  and  options
       granted                                                               1,274              24,801
     Gain on disposal of fixed assets                                         (636)                 --
  Changes in assets and liabilities:
     Accounts receivable                                                   743,334             (51,581)
     Inventories                                                           143,477            (570,436)
     Prepaid expenses and other assets                                      28,602                 788
     Accounts payable and accrued expenses                                (416,336)            578,084
     Customer advances and deposits                                             --             245,000
     Deferred revenue                                                           --            (213,000)
                                                                       -----------         -----------

     Net cash (used in) operating activities                              (163,314)         (1,390,904)
                                                                       -----------         -----------

Cash flows from investing activities:
  Proceeds from sale of fixed assets                                        51,540                  --
  Purchases of fixed assets                                                 (9,856)             (5,300)
  Cost of patents                                                          (12,937)                 --
                                                                       -----------         -----------

       Net cash provided by (used in) investing
          activities                                                        28,747              (5,300)
                                                                       -----------         -----------

Cash flows from financing activities:
  Payment of capital lease obligations                                     (20,212)            (18,241)
  Net benefit from issuance of preferred stock                                  --             (18,351)
                                                                       -----------         -----------
         Net cash used in financing activities                             (20,212)            (36,592)
                                                                       -----------         -----------
   Net decrease in cash and cash equivalents                              (154,779)         (1,432,796)
   Cash and cash equivalents at beginning of period                      1,089,488           2,573,764
                                                                       -----------         -----------
   Cash and cash equivalents at end of period                          $   934,709         $ 1,140,968
                                                                       ===========         ===========

Supplemental disclosure
  Cash paid for:
     Interest                                                          $     4,273         $    64,482
                                                                       ===========         ===========

  Non-cash activities:
     Demonstration unit assembled from inventory                       $    85,392         $        --
                                                                       ===========         ===========
</TABLE>

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


                                       5
<PAGE>

                           ACCENT COLOR SCIENCES, INC.

             STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
                                                     Common Stock                          Accumulated
                                                       Shares              Amount            Deficit              Total
                                                       ------              ------            -------              -----
<S>                                                    <C>                <C>              <C>                 <C>
December 31, 1999                                      21,072,578         49,147,942       $(53,298,443)       $ (4,150,501)

Conversion of
mandatorily
   redeemable convertible preferred stock               5,643,746          1,845,909                 --           1,845,909
Common stock issued to service provider                    10,000              4,844                 --               4,844
Exercise of  stock options                                436,857             95,562                 --              95,562
Adjustment due to cancellation of options                      --            289,450                 --             289,450
Net loss                                                       --                 --         (1,878,437)         (1,878,437)
                                                     ------------       ------------       ------------        ------------

December 31, 2000                                      27,163,181       $ 51,383,707        (55,176,880)         (3,793,173)

Adjustment due to cancellation of options                      --              5,250                 --               5,250
Net loss                                                       --                 --           (770,586)           (770,586)
                                                     ------------       ------------       ------------        ------------
March 31, 2001 (unaudited)                             27,163,181       $ 51,388,957       $(55,947,466)       $ (4,558,509)
                                                     ============       ============       ============        ============
</TABLE>

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


                                       6
<PAGE>

                           ACCENT COLOR SCIENCES, INC.

                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. Interim Condensed Financial Statements

In the opinion of the Company,  the accompanying  unaudited  condensed financial
statements  contain  all  adjustments,   consisting  only  of  normal  recurring
adjustments,  necessary to present fairly its financial position as of March 31,
2001 and the results of  operations  and cash flows for the three  months  ended
March 31, 2001 and 2000.  The December  31, 2000 balance  sheet has been derived
from the Company's  audited  financial  statements  at that date.  These interim
condensed  financial  statements should be read in conjunction with Management's
Discussion  and  Analysis and  financial  statements  included in the  Company's
Annual Report for the year ended December 31, 2000.

The  results of  operations  for the three  months  ended March 31, 2001 are not
necessarily indicative of the results to be expected for the full year.

2. Summary of Significant Accounting Policies

Significant  accounting  policies followed in the preparation of these financial
statements are as follows:

Use of Estimates

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

Revenue Recognition

Revenue  is  generally  recognized  upon  product  shipment.   The  Company  has
established warranty policies that, under specific conditions,  enable customers
to return  products.  The Company  provides  reserves for potential  returns and
allowances  and warranty costs at the time of revenue  recognition.  As of March
31, 2001 and  December  31,  2000,  the Company  has accrued  warranty  costs of
$116,123 and $176,457, respectively.

3. Inventories

Inventories are stated at the lower of cost or market. Cost is determined by the
first-in, first-out method.

Inventories consist of the following:


                                          March 31,      December 31,
                                            2001            2000
                                            ----            ----
                                           (unaudited)

     Raw materials and components         $378,623       $559,393
     Work-in-process                         6,941         10,000
     Finished goods                         68,249        113,289
                                          --------       --------

                                          $453,813       $682,682
                                          ========       ========
4. Modification of Debt Terms

On August 2, 1999, the Company and IBM Corporation  entered into an agreement to
defer the  interest  payments  owed by the  Company  to IBM  arising  out of the
original  Loan  Agreement  between the two companies  dated July 21, 1998.  This
modification provided that the interest payments of approximately $63,000 due on
the first day of each quarter  during 1999 be deferred  until December 31, 2000.
During 2000 the Company paid its interest  payments for each quarter as required
by the original Loan  Agreement.  As of December 31, 2000 the Company was unable
to repay the loan and the deferred interest from 1999,  therefore IBM granted an
extension  until June 30, 2001. In lieu of interest  payments,  IBM has received
discounts on their purchases of ink and spare parts (see Note 6).


                                       7
<PAGE>

                           ACCENT COLOR SCIENCES, INC.

                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

5.  Mandatorily Redeemable Convertible Preferred Stock

Mandatorily   redeemable  convertible  preferred  stock  consists  of  Series  B
Convertible Preferred Stock ("Series B Stock" and Series C Convertible Preferred
Stock (`Series C Stock").

As of March 31, 2001,  there were 2,666,670  shares of common stock reserved for
issuance  pursuant to the conversion of the  outstanding  958 shares of Series B
Stock.

On  December  7, 1999,  the Company  completed  an offering of 33,589  shares of
Series C Stock.  The shares of stock  were sold at a purchase  price of $100 per
share. The Company's net proceeds from this issuance were $2,894,822. Additional
issuance  costs of $88,964 were incurred in the year 2000. The Series C Stock is
convertible  at any time into shares of the  Company's  common  stock at a fixed
conversion  price of $0.40 per share.  As of March 31,  2001,  there were 15,115
shares of Series C Stock that have been converted to 3,778,750  shares of common
stock. As of March 31, 2001, the Company has reserved 4,618,500 shares of common
stock for issuance  pursuant to the conversion of the remaining 18,474 shares of
Series C Stock that are outstanding.

Series C Stock holders are entitled to receive cumulative dividends at a rate of
8% per year of the  initial  purchase  price of $100 per share but only upon the
occurrence  of a Liquidation  Event,  provided that any such dividend is coupled
with an  equivalent  ratable  dividend to the  holders of the Series B Stock.  A
"Liquidation  Event" is defined  to  include a merger  (except a merger in which
Accent Color is the surviving entity), consolidation, dissolution, winding up or
sale of substantially all of the assets of the company, unless the holders of at
least 75% of the Series B and Series C Stocks  determine  that any such event is
not a Liquidation Event.

A  reconciliation  of  mandatorily   redeemable   convertible   preferred  stock
outstanding is as follows:

<TABLE>
<CAPTION>
                                                Series B Stock                     Series C Stock                   Total
                                                --------------                     --------------                   -----
                                             Shares          Amount             Shares            Amount
                                             ------          ------             ------            ------
<S>                                           <C>         <C>                    <C>          <C>               <C>
December 31, 1999                             1,628       $ 1,418,545            33,589       $ 2,894,822       $ 4,313,367

Series B Stock conversions                     (670)         (583,799)               --                --          (583,799)

Series C Stock conversions                       --                --           (15,115)       (1,262,110)       (1,262,110)

Issuance costs for Series C Stock                --                --                --           (88,964)          (88,964)
                                        -----------       -----------       -----------       -----------       -----------
December 31, 2000 and
March 31, 2001 (unaudited)                      958       $   834,746            18,474       $ 1,543,748       $ 2,378,494
                                        ===========       ===========       ===========       ===========       ===========
</TABLE>

6.  Subsequent Events

The  Company has  reached a  settlement  agreement  with IBM  providing  for the
termination of the Loan Agreement,  Promissory  Note and Stock Purchase  Warrant
and Registration Rights Agreement as of May 10, 2001. To fully satisfy the loan,
the  Settlement  Agreement  requires the Company to pay IBM $450,000 by June 30,
2001.  In addition,  the Company will transfer  specific  inventory to IBM which
will continue to be warehoused by the Company,  the Company will give IBM direct
access to vendors and, if  necessary,  act as an  intermediary  with vendors for
IBM.  Also, the Company  granted to IBM an  irrevocable,  perpetual,  worldwide,
non-exclusive, non-transferable, fully paid up and royalty free license to make,
have made on its behalf,  use and sell the  products  and  devices.  The Product
Purchase Agreement signed by the Company and IBM in April, 1996, as amended,  is
not affected by the settlement agreement.


                                       8
<PAGE>

                           ACCENT COLOR SCIENCES, INC.

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

RESULTS OF OPERATIONS
--------------------------------------------------------------------------------

Quarter Ended March 31, 2001 compared to Quarter Ended March 31, 2000.

Total Net Sales.  Total net sales were $558,000 for the three months ended March
31, 2001 compared to $1,146,000  for the three months ended March 31, 2000.  The
Company did not ship any  Truecolor  printing  systems  during the quarter ended
March  31,  2001 due to a lack of new  orders  for  Truecolor  Systems  from its
remaining OEM customer, IBM. IBM experienced disappointing sales results in 2000
and began 2001 with a substantial inventory of Truecolor Systems.  Consequently,
the  Company has focused its  energies  during the past  quarter on  development
projects and the sale of consumables  and spare parts.  Development  revenue was
47% of total net sales while sales of  consumables  and spare parts  represented
53% of total net sales.

Backlog.  The Company  measures  backlog based on purchase orders or commitments
for consumables and spare parts that have not yet been shipped.  As of March 31,
2001, the Company had a backlog for the year 2001 of  approximately  $149,000 as
compared  to over $10  million  at March 31,  2000.  The  decline  in backlog is
attributable  to the  absence of new orders for  Truecolor  Systems  offset only
slightly by ongoing development projects.

Development  Projects.  The Company was engaged in two development  projects for
the three months ended March 31, 2001 which generated revenue of $261,000. There
was no comparable activity for the three months ended March 31, 2000.

Consumables  and Spare  Parts  Sales.  Consumables  and spare  parts  sales were
$297,000 for the three months ended March 31, 2001  compared to $432,000 for the
three months ended March 31, 2000. There have been no new printer  installations
in 2001, therefore the need for consumables has decreased by 31%.

Costs of  Production.  Costs of  production  were  $560,000 for the three months
ended March 31, 2001 as compared to $1,254,000  for the three months ended March
31,  2000.  This  decrease of 55% was  attributed  to the  cessation  of printer
production  in 2001 due to the lack of orders for new  printers  as of March 31,
2001.

Research and Development  Expenses.  Research and development expenses primarily
consist of the cost of personnel and  equipment  needed to conduct the Company's
research and development  efforts,  including  manufacturing  prototype systems.
Research and development expenses were $244,000 for the three months ended March
31,  2001,  a decrease of 64% as compared to $682,000 for the three months ended
March  31,  2000.  The  decrease  in  research  and  development  was  primarily
attributable to a reduction in payroll,  the related  decrease in costs due to a
reduction in  personnel  and a reduction  of outside  design  work.  The Company
focused its energies on development projects that were funded.

Marketing,   General  and  Administrative  Expenses.   Marketing,   general  and
administrative  expenses were $532,000 for the three months ended March 31, 2001
as compared to $735,000 for the three months ended March 31, 2000. This decrease
of 28% was due to a reduction in payroll related costs.

Interest Expense and Other (Income) Expense. Interest expense was $4,000 for the
three  months  ended March 31, 2001 as compared to $97,000 for the three  months
ended March 31,  2000.  Interest  income was $12,000 for the three  months ended
March 31, 2001 as compared to $25,000 for the three months ended March 31, 2000.
In 2001 the Company  stopped  paying  interest on the loan to IBM thus causing a
decrease of 96% in interest expense. In lieu of interest payments,  IBM received
discounts on their purchases of ink and spare parts.  Interest income  decreased
by 52%  primarily  because  the  Company  utilized  its  existing  cash  to fund
operations as it worked to develop additional industrial printing opportunities.


                                       9
<PAGE>

                           ACCENT COLOR SCIENCES, INC.

LIQUIDITY AND CAPITAL RESOURCES
--------------------------------------------------------------------------------

During the latter part of 2000, the Company  responded to the slow growth in the
market for Truecolor  Systems and  indications  that it would not receive orders
for new Truecolor Systems in the foreseeable future during 2001 by concentrating
its focus on  opportunities  in the field of  industrial  printing.  The initial
development contracts which the Company has succeeded in obtaining,  such as its
contract with Philip Morris, only slightly offset the loss of revenue associated
with the  cessation  of any new orders for  Truecolor  Systems.  The Company has
reduced its  personnel  and  production  costs  previously  associated  with the
manufacture of Truecolor  Systems but maintains a substantial  engineering group
for the development of industrial printing applications,  the costs of which, to
date,  have been only  partially  covered  by  industrial  printing  development
project revenues.

The Company  cannot sustain its operations  without  additional  capital and has
been  actively  seeking  opportunities  for  additional  capital or a  strategic
partnering  relationship  or the  sale  of part  or all of its  operations.  The
Company has worked  extensively with its investment  bankers and advisors and is
in direct  discussion with third parties who may have an interest in some or all
of the Company's  technology and  operations.  These  discussions  are on-going.
However,  while the Company  believes that they have identified  parties with an
interest  in a portion  of its  business,  it has  received  no  commitments  or
statements of intent regarding any additional funding, strategic relationship or
sale. The Company believes that its settlement  agreement with IBM (discussed in
footnote 6 of the financial  statements  and a copy which is filed as an exhibit
to this report)  concerning its  indebtedness to IBM has improved its ability to
seek additional funding or structure an alternative arrangement but there can be
no assurance that any  additional  capital or  alternative  arrangement  will be
obtained or concluded.

The Company's need for funding is acute as it attempts to establish new lines of
business in addition to its remaining  activities  associated with the installed
base of Truecolor  Systems.  The Company is working diligently to secure funding
or a transaction which will, under the  circumstances,  best serve the interests
of the Company's creditors, customers, employees and shareholders.

Operating  activities consumed $163,000 in cash during the first quarter of 2001
as compared to  $1,391,000  consumed by  operations  during the first quarter of
2000. This decrease in cash utilized was primarily attributed to a reduced level
of business activity.

Capital  expenditures  were $10,000 for the first quarter of 2001 as compared to
$5,300 for the first quarter of 2000.  Capital  expenditures have been kept to a
minimum. The Company has no significant capital expenditure commitments at March
31, 2001.

As of March 31, 2001,  the  Company's  primary  source of liquidity was cash and
cash equivalents  totaling $935,000.  Based on the current operating plan of the
Company,  the primary requirements for cash through the remainder of this second
quarter  of 2001 will be to fund  operating  losses and for debt  repayment  and
supplier  payments.  The Company's  currently  anticipated levels of revenue and
cash flow are subject to many uncertainties and cannot be assured. The amount of
funds required by the Company will depend on many factors, including engineering
and development requirements. The inability to obtain additional financing or to
generate  sufficient cash from operations will require the Company to reduce its
activities, or otherwise to curtail or discontinue its operations.

The Company's  current funds and anticipated  revenues during the second quarter
of 2001 are not  expected  to be  sufficient  to support its  business  plan and
sustain  its  current  operations.  The  Company  is  committed  under  its loan
settlement agreement with IBM to pay IBM $450,000 by June 30, 2001. Based on its
current operating plan, the Company anticipates that additional  financing or an
alternative  transaction  will be  required  in order to finance and sustain its
operations beyond the second quarter of 2001.


                                       10
<PAGE>

                          ACCENT COLOR SCIENCES, INC.


FORWARD-LOOKING STATEMENTS
--------------------------------------------------------------------------------

The foregoing  statements and analysis  contain  forward-looking  statements and
information  including  information  with  respect  to the  Company's  plans and
strategy for its business. Such forward-looking  statements are made pursuant to
the "safe harbor"  provisions of Section 21E of the  Securities  Exchange Act of
1934,  as  amended,  which  were  enacted  as  part  of the  Private  Securities
Litigation  Reform  Act of 1995.  Forward-looking  statements  contained  in the
foregoing analysis include marketing, revenue and expenditure expectations,  and
other strategies and anticipated  events.  Without  limiting the foregoing,  the
words "believes",  "anticipates", "plans", "expects" and similar expressions are
intended to identify forward-looking statements. There are a number of important
factors that could cause actual events or the Company's actual results to differ
materially  from  those  indicated  by such  forward-looking  statements.  These
factors  include,   without  limitation,   (i)  the  need  to  secure  strategic
relationships,  additional  capital and/or an alternative  transaction such as a
sale of a portion of its business in order to sustain operations;  (ii) pursuant
to our  agreement  with  our  secured  lender  (IBM)  the  need to  satisfy  the
conditions set forth in the Settlement  Agreement dated May 10, 2001 including a
payment  to IBM of  $450,000  by June 30,  2001;  (iii)  the  level of  customer
acceptance  of the  Company's  products  and the  dependence  of the  Company on
additional  orders from  current  customers;  (iv) the ability of the Company to
raise  capital  sufficient  to  support  its  business  plan;  (v) the rights of
customers  of the Company to modify or cancel  orders under the terms of related
product purchase  agreements;  (vi) the dependence of the Company on third party
suppliers  for certain key  technology  elements;  (vii) the  dependence  of the
Company on third  party  marketing,  distribution  and  support,  including  the
control by the Company's OEM customers  over the timing of the  introduction  of
its  products  and the need for the  Company to complete  and satisfy  extensive
testing  requirements  of its products on a timely  basis;  (viii) the potential
fluctuations  in the Company's  quarterly  results of  operations;  and (ix) the
ability of the Company to identify and procure  additional  industrial  printing
opportunities. Further information on factors that could cause actual results to
differ from those  anticipated  is detailed in the  Company's  Annual Report for
2000 on Form 10-K as filed with the  Securities  and  Exchange  Commission.  Any
forward-looking  information  contained  herein should be considered in light of
these factors.


                                       11
<PAGE>

                          ACCENT COLOR SCIENCES, INC.


Part II.  Other Information

Item 1.  Legal Proceedings

The Company is not a party to any material legal proceedings.

Item 2.  Changes in Securities and Use of Proceeds

None.

Item 3.  Defaults Upon Senior Securities

None.

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

None.

Item 5.  Other Information
None.

Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits

The  financial  statements as set forth under Item 1 of this report on Form 10-Q
are incorporated herein by reference.

10.34  IBM Settlement Agreement as of May 10, 2001(filed herewith).

(b) Reports filed on Form 8-K

There were no reports on form 8-K filed during the quarter ended March 31, 2001.


                                       12
<PAGE>

SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                      ACCENT COLOR SCIENCES, INC.


      Dated May 14, 2001          By: /s/ Charles E. Buchheit
            -------------------       ---------------------------------------
                                             Charles E. Buchheit
                                      President and Chief Executive Officer



                                  By:/s/ Ronald C. Derby
                                     ----------------------------------------
                                               Ronald C. Derby
                                          Chief Financial Officer
                                    (Principal Financial and Accounting Officer)



                                       13
<PAGE>

May 10, 2001
                              Settlement Agreement

     This Settlement  Agreement is entered into this 20th day of April,  2001 by
and between Accent Color Sciences,  Inc., a Connecticut  corporation  having its
principal  place  of  business  at 800  Connecticut  Boulevard,  East  Hartford,
Connecticut  06108  (hereafter,   "ACS")  and  International   Business  Machine
Corporation, a New York corporation, with its principal place of business at New
Orchard Road, Armonk, New York 10504 ("IBM").

                                    Recitals

     Whereas ACS is in the business of developing and selling a certain printing
system (the "Truecolor System") to IBM;

     And Whereas the parties  also  entered  into a Loan  Agreement,  Promissory
Note, Stock Purchase Warrant and Registration Rights Agreement,  all on or about
July 21, 1998;

     And  Whereas  the  parties  now  wish  to  terminate  the  Loan  Agreement,
Promissory Note and Stock Purchase  Warrant and  Registration  Rights  Agreement
between them and enter into this Settlement  Agreement,  specifying their rights
and obligations going forward;


     Now Therefore,  in consideration of the covenants set forth below and other
good and valuable consideration,  the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree as follows:


                                       14
<PAGE>

1.   Definitions.

1.1  "Loan  Agreement"  shall mean the Loan Agreement,  Promissory  Note,  Stock
     Purchase Warrant and Registration Rights Agreement between the parties, all
     executed on or about July 21, 1998.  Loan Agreement  shall also include any
     other agreements ancillary to the agreements listed above.

1.2  "Product  Purchase  Agreement"  shall mean the Product  Purchase  Agreement
     entered into by the parties on or about April 11,  1996,  as amended by the
     parties from time to time.

1.3  "Truecolor  System" means the printing  system  manufactured by ACS, as set
     forth in greater detail in the Product Purchase Agreement.

2.   Payment to IBM.

     No later than June 30,  2001,  ACS shall pay to IBM Four  Hundred and Fifty
     Thousand Dollars ($450,000).  This payment shall be in full satisfaction of
     any and all amounts due to IBM under the Loan Agreement. All obligations of
     ACS under the Loan  Agreement  shall be deemed  satisfied  and paid in full
     upon payment of the $450,000.

3.   Hold Inventory for Use by IBM.

3.1  ACS shall hold its  entire  inventory  of  components,  parts and  supplies
     intended for use in the Truecolor Systems for inspection by representatives
     of IBM, who shall specify therefrom the items  (hereinafter  referred to as
     "Inventory")  to be listed on Exhibit A, which the  parties  shall sign and
     attach to this Agreement. Items not placed on Exhibit A shall not be deemed
     Inventory pursuant to this Agreement and may be disposed of by ACS.

3.2  For a period of three (3) years from the date of this Settlement, ACS shall
     hold the Inventory at ACS's  facility in East  Hartford,  Connecticut at no
     charge to IBM. Title to the Inventory shall remain with ACS until the items
     are released by ACS pursuant to IBM's  written  instructions.  Any items of
     Inventory  released to IBM pursuant to such written  instructions  shall be
     provided to IBM at no cost,  except that IBM shall be  responsible  for the
     cost of any reasonable  packing and shipping charges.  If at the end of the
     three year period any items of Inventory still remain in ACS's  possession,
     ACS  shall so  notify  IBM.  If IBM  decides  to  acquire  any of the items
     remaining  in  Inventory,  IBM  shall  provide  ACS with  written  shipping
     instructions


                                       15
<PAGE>

     and ACS shall ship to IBM the items of Inventory  specified by IBM no later
     than  thirty  (30)  days   following   ACS's  receipt  of  IBM's   shipping
     instructions.   If,  however,   IBM  does  not  provide  written   shipping
     instructions  to ACS within thirty (30) days following IBM's receipt of the
     notice, then ACS may dispose of the Inventory as it wishes, with no further
     liability  for the Inventory to IBM.

3.3  ACS  shall not be  liable  to IBM for any  damage or loss to the  Inventory
     while the Inventory is in ACS's control and possession;  provided, however,
     that ACS shall use reasonable care in holding the Inventory.

3.4  IBM shall  reimburse ACS for any property taxes paid by ACS with respect to
     the Inventory,  provided ACS shall present IBM with evidence of payment and
     the  allocation  of such taxes  between the  Inventory  and other  personal
     property of ACS in form and substance reasonably satisfactory to IBM.


                                       16
<PAGE>

4.   IBM's Right to Purchase under ACS's Contracts with Suppliers.

4.1  ACS represents that the only formal written vendor contract it has in place
     relating to  Truecolor  Systems is a contract  entered into between ACS and
     Spectra Inc.  ("Spectra")  dated January 8, 1996 (hereafter  referred to as
     the "Spectra Agreement")

4.2  ACS agrees to take one or more of the following actions with respect to the
     Spectra Agreement at the election of IBM from time to time: =

     a.   ACS will use its reasonable  best efforts to authorize IBM to purchase
          products  pursuant to the  Spectra  Agreement  the  Spectra  Agreement
          directly from Spectra, subject to any necessary approval of Spectra to
          such arrangement;

     b.   ACS shall serve as a middleman  and process  orders  under the Spectra
          Agreement as IBM shall  require from time to time,  in which event IBM
          shall  reimburse  ACS for the cost of any products so  purchased  from
          Spectra  through ACS as  incurred  and for ACS's  reasonable  costs of
          shipping any such products to IBM; and

     c.   ACS will assign its rights under the Spectra Agreement to IBM, subject
          to any necessary approval of Spectra,  and take all actions reasonably
          required of it by IBM to permit IBM to deal directly with Spectra with
          respect  to  products  associated  with  Truecolor  Systems  on  terms
          specified in the Spectra  Agreement or as otherwise  negotiated by IBM
          directly with Spectra.

4.3  ACS will  honor the open  purchase  orders  listed in  Exhibit  B, and will
     continue to process  purchase  orders  received from IBM until IBM can make
     arrangements to purchase components, parts and supplies directly from ACS's
     suppliers.

5.   Additional Orders for Truecolor Systems.


                                       17
<PAGE>

5.1  The parties  acknowledge that as of the date of this Settlement  Agreement,
     there are no pending  orders from IBM for Truecolor  Systems.  In the event
     that IBM desires  additional  Truecolor Systems,  however,  IBM shall order
     them from ACS.

6.   Non-exclusive License of Intellectual Property to IBM.

6.1  Patents.  Subject to the terms of this Agreement,  ACS hereby grants to IBM
     and IBM accepts:

     a.   An irrevocable, perpetual, worldwide, non-exclusive, non-transferable,
          fully  paid up and  royalty  free  license  to make,  have made on its
          behalf,  use and sell the  products  and  devices  and/or  utilize the
          design, concepts and applications reflected in the following patents:

          1.   # 5,602,624 (allowed 2/11/97).

          2.   # 5,729,817 (allowed 3/17/98)

          3.   # 5, 793,397 (allowed 8/11/98)

          4.   # 6,072,587 (allowed 6/6/00)

          5.   # 6,196,662 (allowed 3/6/01)

     b.   An irrevocable, perpetual, worldwide, non-exclusive, non-transferable,
          fully  paid up and  royalty  free  license  to make,  have made on its
          behalf,  use and sell the  products  and  devices  and/or  utilize the
          design,  concepts and applications  reflected in the patents resulting
          from  any  ACS  patent  applications  pending  as of the  date of this
          Settlement or filed within one hundred twenty (120) days following the
          date of this Settlement.

     c.   IBM shall have the right to sublicense the patents  referenced in this
          Section 6.1 to third parties for the sole purpose of using those third
          parties  to  provide  products  to IBM  and to  others  (but  only  if
          providing products to others is reasonably  necessary in order for the
          third parties to provide products to IBM). IBM shall provide to ACS in
          writing on  January  2nd of each year the names and  addresses  of all
          sublicensees, and a copy of the sublicense agreement.

6.2  IBM shall have the right to sue a third  party for patent  infringement  in
     IBM's name.


                                       18
<PAGE>

6.3  Other Intellectual Property.

     a.   Subject to the terms of this  Agreement,  ACS hereby  grants to IBM an
          irrevocable,  perpetual, worldwide,  non-exclusive,  non-transferable,
          fully  paid  up and  royalty  free  license  to use  the  intellectual
          property listed on Exhibit C.

     b.   In addition,  IBM shall have the right to sublicense the  intellectual
          property  listed in Exhibit C, or any of it, to third  parties for the
          sole purpose of using those third  parties to provide  products to IBM
          and to others (but only if providing  products to others is reasonably
          necessary in order for the third parties to provide  products to IBM).
          IBM shall  provide to ACS in  writing on January  2nd of each year the
          names and addresses of all sublicensees,  and a copy of the sublicense
          agreement.

7.   Mutual Releases.

7.1  Release by ACS. ACS, for and in consideration of this Settlement  Agreement
     and  the  sum of One  Dollar  ($1.00),  the  receipt  of  which  is  hereby
     acknowledged,  has remised,  released and forever discharged,  and by these
     presents does for itself and its  successors,  remise,  release and forever
     discharge IBM, its employees,  officers, directors and agents (hereinafter,
     collectively  "IBM") and its  successors of and from all, and all manner of
     action and actions,  cause and causes of actions,  suits, debts, dues, sums
     of  money,  accounts,  bonds,  bills,  specialties,  covenants,  contracts,
     agreements,  promises, trespasses, damages, judgements,  executions, claims
     and demands  whatsoever,  in law and equity which against IBM ACS ever had,
     now has, or which it or its successors  can, shall or may have for, upon or
     by reason of any matter,  cause or thing  whatsoever  from the beginning of
     the world to the day of the date of these presents; provided, however, that
     ACS does not release IBM of the following obligations:

     a.   Any obligations of IBM created by this Settlement Agreement;

     b.   Any obligations of IBM contained in the Product Purchase Agreement;

     c.   Reimbursement  by IBM for ACS's costs of  personnel  dedicated  to IBM
          matters in the agreed amount of Thirty Five Thousand Dollars ($35,000)
          for March 2001 and Thirty Five Thousand ($35,000) for April 2001; and


                                       19
<PAGE>

     d.   Any amounts  due to ACS under open or  fulfilled  purchase  orders for
          inks, parts and supplies.

7.2  Release by IBM. IBM, for and in consideration of this Settlement  Agreement
     and  the  sum of One  Dollar  ($1.00),  the  receipt  of  which  is  hereby
     acknowledged,  has remised,  released and forever discharged,  and by these
     presents does for itself and its  successors,  remise,  release and forever
     discharge ACS, its employees,  officers, directors and agents (hereinafter,
     collectively  "ACS") and its  successors of and from all, and all manner of
     action and actions,  cause and causes of actions,  suits, debts, dues, sums
     of  money,  accounts,  bonds,  bills,  specialties,  covenants,  contracts,
     agreements,  promises, trespasses, damages, judgements,  executions, claims
     and demands  whatsoever,  in law and equity which against ACS IBM ever had,
     now has, or which it or its successors  can, shall or may have for, upon or
     by reason of any matter,  cause or thing  whatsoever  from the beginning of
     the world to the day of the date of these presents; provided, however, that
     IBM does not release ACS of the following  obligations:

     a.   Any  obligations of ACS created by this Settlement  Agreement;  and

     b.   Any obligations of ACS contained in the Product Purchase Agreement.

8.   Miscellaneous.

8.1  Notices.  Any notice,  demand or request  required or permitted to be given
     under this Agreement shall be either  hand-delivered or deposited,  postage
     prepaid,  in the U.S.  mail,  certified or  registered  mail,  addressed as
     follows:

     If to ACS:

     Accent Color Sciences, Inc.
     800 Connecticut Boulevard
     East Hartford, Connecticut 06108
     Attention:        Charles E. Buchheit


                                       20
<PAGE>

     If to IBM:

     International Business Machine Corporation
     6300 Diagonal Highway
     Boulder, Colorado 80301
     Attention: Gary Lorgan

     Changes to the  foregoing  individuals  or addresses  may be made by notice
     similarly given.

8.2  Choice of Law and Venue.  This  Agreement  shall be governed by the laws of
     the State of Connecticut, without regard to its choice of law provisions

8.3  Entire  Agreement.  This Agreement is the entire agreement  between IBM and
     ACS with respect to the matters set forth above.  All other  understandings
     (including but not limited to Loan  Agreement),  arrangements,  promises or
     representations  are replaced by this  Agreement and may not be relied upon
     by either party. This Agreement may only be modified by a written amendment
     signed by both parties.

8.4  Force  Majeur.  Neither  party  shall be liable  for  delay in  performance
     hereunder  due to forces  beyond its control,  including but not limited to
     acts of  God,  fires,  strikes  or  other  labor  disputes,  acts of war or
     intervention by any governmental authority, and each party shall take steps
     to minimize any such delay.

8.5  Termination for Breach. This Agreement may be terminated by either party on
     thirty (30) days  written  notice in the event of a material  breach by the
     other  party;  provided,  however,  that if the  breaching  party cures the
     breach within the 30-day period,  the Agreement  shall remain in full force
     and effect.

8.6  Contract  Interpretation.  Both parties have had an  opportunity  to review
     this Agreement with their  respective legal counsel and have negotiated the
     terms of this Agreement to their satisfaction.  In interpreting the meaning
     of any provision of this  Agreement,  the parties request that the tribunal

                                       21
<PAGE>

8.7  No Waiver.  The waiver of any breach of this Agreement by the non-breaching
     party shall not  constitute  a waiver of any other  breach or of any future
     breach of the same obligation.

8.8  Benefits.  This Agreement shall be binding upon and inure to the benefit of
     the parties hereto and to their respective successors and assigns.


     To signify their  acceptance of the terms and  conditions  set forth above,
the  parties  have  caused  their  authorized  representatives  to execute  this
Agreement as follows:


International Business Machine Corporation    Accent Color Sciences, Inc.



By: /s/ Gary P. Lorgan                        By: /s/ Charles E. Buchheit
   -----------------------------------            -----------------------------
    Gary P. Lorgan                                Charles E. Buchheit

Title: Director, Business Alliances            Title: President and CEO
        and Procurement

Date:  May 10, 2001                            Date:  May 11, 2001
       ------------                                   ------------


                                       22
<PAGE>

Exhibit A
                                      Inks

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

 IBM Part No.           ACS Part No.          Color              Quantity
-------------------------------------------------------------------------------
 1402850                ACS2569               Green 569U               5
-------------------------------------------------------------------------------
 1402851                ACS2003               Magenta                  5
-------------------------------------------------------------------------------
 1402853                ACS2354               Green 354U               1
-------------------------------------------------------------------------------
 1402854                ACS2005               Warm Red                 4
-------------------------------------------------------------------------------
 1402855                ACS2010               Violet                   3
-------------------------------------------------------------------------------
 1402858                ACS2021               Orange 21                1
-------------------------------------------------------------------------------
 1402871                ACS2609               Maroon 871               2
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
PH7          7112-002   ASSY, 256 PRINTHEAD      A         40 EA          1    81000    6561       0       0     87561
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       8211-001   ASSY, RESERVOIR MODULE   C         13 EA          1  35468.8 2872.97       0       0  38341.78
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       3688-002   BELT,PVC UL MAIN TRANPRT A         36 EA          1    30600  2478.6       0       0   33078.6
-----------------------------------------------------------------------------------------------------------------------
PH1          7112-002   ASSY, 256 PRINTHEAD      A          9 EA          1    18225 1476.23       0       0  19701.23
-----------------------------------------------------------------------------------------------------------------------
LOC2FLR      2774       FILTER, ELEMENT, RSRVR   C        136 EA          1  15327.2  1241.5       0       0   16568.7
-----------------------------------------------------------------------------------------------------------------------
9B1          2809       CABLE, SNSR, TEMP        C        120 EA          1    10224  828.14       0       0  11052.14
-----------------------------------------------------------------------------------------------------------------------
16A2         7999-003   ASSY, INTERCONNECT BOARD C         14 EA          1     8400   680.4       0       0    9080.4
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       8013-001   ASSY, DRIVE ROLL,XPRT    C         16 EA          1     7600   615.6       0       0    8215.6
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       7235-001   FAN, 5.7 WATT, 130CFM    C        185 EA          1     7400   599.4       0       0    7999.4
-----------------------------------------------------------------------------------------------------------------------
PH7          7724-002   ASSY,HEAD      INTERFACE C         55 EA          1  7301.25   591.4       0       0   7892.65
                        BOARD
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       7706-001   ROLLER, HEATED RETAINED  C         30 EA          1     7125  577.13       0       0   7702.13
-----------------------------------------------------------------------------------------------------------------------
PH4          6750-003   PLATE,   INSULATING  256 A        358 EA          1   6676.7  540.81       0       0   7217.51
                        JET
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       3215-009   ASSY,CNTRL PANEL 586     C          2 EA          1     6378  516.62       0       0   6894.62
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       23
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
MRB          7112-002   ASSY, 256 PRINTHEAD      A          3 EA          1     6075  492.08       0       0   6567.08
-----------------------------------------------------------------------------------------------------------------------
17A3         5850-002   ASSY,     MOTOR     STEP C        190 EA          1     6061  490.94       0       0   6551.94
                        CARRIAGE
-----------------------------------------------------------------------------------------------------------------------
PH5          7051-002   ASSY,PURGE HEATER        A        200 EA          1  1485.02  120.29    1005    3015    5625.3
-----------------------------------------------------------------------------------------------------------------------
PH1          7326-004   BEZEL, PRINTHEAD 256     C        182 EA          1   5177.9  419.41       0       0   5597.31
-----------------------------------------------------------------------------------------------------------------------
17A3         8770-001   ASSY,HALOGEN HEATER 230V C         30 EA          1     5100   413.1       0       0    5513.1
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       8870-001   ASSY, INPUT LOOP MOTOR   C         11 EA          1     4763   385.8       0       0    5148.8
-----------------------------------------------------------------------------------------------------------------------
16A1         8021-001   ASSY, PLATEN,REAR        C         43 EA          1  4569.18   370.1       0       0   4939.28
-----------------------------------------------------------------------------------------------------------------------
17A3         8301-001   ASSY, IGUS TRACK W/BRKTS C        232 EA          1  4354.64  352.73       0       0   4707.37
-----------------------------------------------------------------------------------------------------------------------
PH4          7639-001   MOUNT, 300 DPI DROOL CUP A        541 EA          1     4328  350.57       0       0   4678.57
-----------------------------------------------------------------------------------------------------------------------
5A7          7993-001   MOTOR/CONTROL/5A SERVO   C         18 EA          1   4260.6  345.11       0       0   4605.71
-----------------------------------------------------------------------------------------------------------------------
150000       2101-007   ASSY, UMBILICAL HTR      C        109 EA          1  4118.02  333.56       0       0   4451.58
-----------------------------------------------------------------------------------------------------------------------
15A4         7726-002   ASSY,HEAD      AMPLIFIER C         88 EA          1  4116.64  333.45       0       0   4450.09
                        BOARD
-----------------------------------------------------------------------------------------------------------------------
17A3         8771-001   ASSY,HALOGEN HEATER 240V C         23 EA          1   3765.1  304.97   74.27   89.96    4234.3
-----------------------------------------------------------------------------------------------------------------------
16A1         6725-003   TUBE, INK PURGE,256 PH   A         19 EA          1     3705  300.11       0       0   4005.11
-----------------------------------------------------------------------------------------------------------------------
70           5378-002   ASSY, TOOL BELT REP      C          8 EA          1  3191.49  258.51   107.2   321.6   3878.81
-----------------------------------------------------------------------------------------------------------------------
6B5          3653       SCSI, PCA, CONFIGURED    C         14 EA          1     3290  266.49   65.66  196.98   3819.13
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       7658-001   RLR, IDLER,EXTRUDED      A         37 EA          1   3526.1  285.61       0       0   3811.71
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       7660-001   RLR, EXTRUDED,URETHANE   A         29 EA          1  3502.33  283.69       0       0   3786.02
-----------------------------------------------------------------------------------------------------------------------
5B6          8910-001   MOTOR/CNTR/5A            C         13 EA          1  3077.36  249.27       0       0   3326.63
                        SERVO/ILOOP
-----------------------------------------------------------------------------------------------------------------------
10B3         6667-002   FITTING, UMB BANJO MOD   C        441 EA          1  2888.55  233.97       0       0   3122.52
-----------------------------------------------------------------------------------------------------------------------
7B1          8947-001   ASSY,300DPI   PRTHD-TEST C          1 EA          1  2364.42  191.52  108.88  326.63   2991.44
                        VE
-----------------------------------------------------------------------------------------------------------------------
9B6          7912-001   SNSR,     PHOTO     PROX A         72 EA          1  2499.84  202.49       0       0   2702.33
                        10-30VDC
-----------------------------------------------------------------------------------------------------------------------
16A1         8019-001   ASSY, PLATEN,FRONT       C         22 EA          1  2337.72  189.36       0       0   2527.08
-----------------------------------------------------------------------------------------------------------------------
FLOOR3       7780-001   AC-DC POWER MODULE, LV   A          1 EA          1   2187.1  177.16       0       0   2364.26
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       7937-001   CABLE, SIGNAL 1          C        235 EA          1   1950.5  157.99       0       0   2108.49
-----------------------------------------------------------------------------------------------------------------------
15B2         5100-002   LEADSCREW & NUT, 6 PITCH C         13 EA          1     1885  152.69       0       0   2037.69
-----------------------------------------------------------------------------------------------------------------------
PH5          7637-002   PLATE, 300 DPI PH        C        100 EA          1     1865  151.07       0       0   2016.07
-----------------------------------------------------------------------------------------------------------------------
11B7         7659-001   RLR, PIVOT ARM,URETHANE  C         16 EA          1  1852.32  150.04       0       0   2002.36
-----------------------------------------------------------------------------------------------------------------------
16A3         7962-001   MACHINE PROCESSOR        A          2 EA          1     1836  148.72       0       0   1984.72
-----------------------------------------------------------------------------------------------------------------------
6C6          8086-001   ASSY,LIN.    ACT.   BELT A         16 EA          1     1764  142.88       0       0   1906.88
                        STEER
-----------------------------------------------------------------------------------------------------------------------
3C3          9024-001   KIT, LABELS IM, VE       C         94 EA          1    15.04    1.22  472.35 1417.05   1905.66
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       24
<PAGE>


<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
15A2         8692-002   ASSY, HEAD DRIVER BOARD  C          6 EA          1  1737.66  140.75       0       0   1878.41
-----------------------------------------------------------------------------------------------------------------------
9C7          6805-005   ASSY, REGULATOR BOARD,VE C         13 EA          1  1621.49  131.34       0       0   1752.83
-----------------------------------------------------------------------------------------------------------------------
PH1          7325-002   CLAMP, PRINTHEAD CLAMP   C        422 EA          1  1607.82  130.23       0       0   1738.05
-----------------------------------------------------------------------------------------------------------------------
9A5          4112       ASSY, SWITCH, E-STOP     C         38 EA          1   1592.2  128.97       0       0   1721.17
-----------------------------------------------------------------------------------------------------------------------
11B3         7228-001   BRUSH, STATIC 1/2, MOD.  C        242 EA          1     1573  127.41       0       0   1700.41
-----------------------------------------------------------------------------------------------------------------------
PH4          6821-002   ASSY, DROOL CUP W/HEATER A         32 EA          1   579.14   46.91     268     804   1698.05
-----------------------------------------------------------------------------------------------------------------------
15B4         5688-002   ASSY, LUNG PUMP          C          7 EA          1  1536.71  124.47       0       0   1661.18
-----------------------------------------------------------------------------------------------------------------------
50000000     8700-001   FILTER, EMI, 3PH, 36 AMP C          6 EA          1   1455.6   117.9       0       0    1573.5
-----------------------------------------------------------------------------------------------------------------------
6A7          5391       TOOL,  SHAFT  ARM,  BELT A         20 EA          1     1400   113.4       0       0    1513.4
                        REP
-----------------------------------------------------------------------------------------------------------------------
CUST-RTN     6463-002   ASSY, IF CARD,VE         C          1 EA          1     1380  111.78       0       0   1491.78
-----------------------------------------------------------------------------------------------------------------------
50000000     8701-001   FILTER, EMI, 3PH, 50 AMP C          4 EA          1  1290.64  104.54       0       0   1395.18
-----------------------------------------------------------------------------------------------------------------------
4A1          7939-001   CABLE, POWER 3           C        236 EA          1   1227.2    99.4       0       0    1326.6
-----------------------------------------------------------------------------------------------------------------------
10C6         7452-001   LABEL,SELF-LAMINATE,LASERA      30582             1  1223.28   99.09       0       0   1322.37
-----------------------------------------------------------------------------------------------------------------------
100000       5983-001   PULLEY, MOD,3mmP, .31 ID C         87 EA          1     1218   98.66       0       0   1316.66
-----------------------------------------------------------------------------------------------------------------------
PH6          6824-001   CUP, DROOL               A        205 EA          1  1200.69   97.26       0       0   1297.94
-----------------------------------------------------------------------------------------------------------------------
11A2         3034       BRG, BALL                C        218 EA          1     1199   97.12       0       0   1296.12
-----------------------------------------------------------------------------------------------------------------------
3A4          5390       BRKT, FLOAT, BELT REP.   A         23 EA          1     1196   96.88       0       0   1292.88
-----------------------------------------------------------------------------------------------------------------------
REC-INS      3099-002   ASSY, PCB BAIL SENSOR    C         29 EA          1   1183.2   95.84       0       0   1279.04
-----------------------------------------------------------------------------------------------------------------------
1500         2611       ENCODER,  HIGH  RES  500 C          5 EA          1     1150   93.15       0       0   1243.15
                        RPM
-----------------------------------------------------------------------------------------------------------------------
80           7144-003   ASSY, SSR BOARD          C          5 EA          1   1131.1   91.62       0       0   1222.72
-----------------------------------------------------------------------------------------------------------------------
9B5          8293-001   SNSR,               BELT C        185 EA          1  1119.25   90.66       0       0   1209.91
                        STEERING,90DEG
-----------------------------------------------------------------------------------------------------------------------
7A2          5379-002   TOOL, SHAFT, BELT REP    A         19 EA          1     1102   89.26       0       0   1191.26
-----------------------------------------------------------------------------------------------------------------------
10000000     246        STANDOFF, PC BOARD 25MM  A        958 EA          1   1101.7   89.24       0       0   1190.94
-----------------------------------------------------------------------------------------------------------------------
PH1          8945-001   BRKT, BELT CURL, VE      C        268 EA          1   1098.8      89       0       0    1187.8
-----------------------------------------------------------------------------------------------------------------------
11A3         4809       SWITCH, INTERLOCK, SPST  C        137 EA          1  1059.01   85.78       0       0   1144.79
-----------------------------------------------------------------------------------------------------------------------
16A2         8119-001   PWR SPLY,COMPUTER 300W   C         13 EA          1     1053   85.29       0       0   1138.29
-----------------------------------------------------------------------------------------------------------------------
4A5          4329-002   SCSI   CABLE   40'   M/M C          3 EA          1     1041   84.32       0       0   1125.32
                        PLENUM
-----------------------------------------------------------------------------------------------------------------------
6B2          7428-001   TOOL, PLCC EXTRACTION    C         52 EA          1   1037.4   84.03       0       0   1121.43
-----------------------------------------------------------------------------------------------------------------------
400          8240-002   ASSY, BASIN MOTOR SENSOR C          7 EA          1  1033.55   83.72       0       0   1117.27
-----------------------------------------------------------------------------------------------------------------------
LOC2B4       255        TUBING, SILICONE, CLEAR, C       9795 IN         12  1020.31   82.65       0       0   1102.96
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       25
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
FLOOR4       8285-001   BACWARD CURVED IMPELLAR  C         13 EA          1     1014   82.13       0       0   1096.13
-----------------------------------------------------------------------------------------------------------------------
5C6          5381       TOOL,MOUNT    XPORT,BELT A         19 EA          1      969   78.49       0       0   1047.49
                        REP
-----------------------------------------------------------------------------------------------------------------------
1000000      6387-001   SCREW, BASE LEVELING     C        121 EA          1   937.75   75.96       0       0   1013.71
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       9076-001   ASSY,HEATED  ROLLER  FRU C          2 EA          1   739.09   59.87   50.25  150.75    999.95
                        VE
-----------------------------------------------------------------------------------------------------------------------
3A4          5386       BRKT, LOCK, BELT REP.    A         19 EA          1      912   73.87       0       0    985.87
-----------------------------------------------------------------------------------------------------------------------
6A5          2109       ASSY, RLR, MOUNT         C         23 EA          1      851   68.93       0       0    919.93
-----------------------------------------------------------------------------------------------------------------------
9A6          4496       HTR,1"WX20"L,120V/240V   A         54 EA          1   843.48   68.32       0       0     911.8
-----------------------------------------------------------------------------------------------------------------------
9C4          7617-001   SIMM, 16MB DENSITRON     C         21 EA          1      840   68.04       0       0    908.04
-----------------------------------------------------------------------------------------------------------------------
30           7110-001   ASSY, OUTPUT MOTOR       C          4 EA          1      834   67.55       0       0    901.55
-----------------------------------------------------------------------------------------------------------------------
6B7          3699-002   ASSY, FAN,12VDC          C         48 EA          1   822.72   66.64       0       0    889.36
-----------------------------------------------------------------------------------------------------------------------
11C3         7811-001   ASSY,  LIGHT PRINTER     C         32 EA          1   314.27   25.46   188.8  358.72    887.25
-----------------------------------------------------------------------------------------------------------------------
400          8306-001   ASSY,BASIN         VALVE C         20 EA          1    814.2   65.95       0       0    880.15
                        BLK/PIST
-----------------------------------------------------------------------------------------------------------------------
4000         8230-002   ASSY, BASIN HEATER       C         29 EA          1   812.58   65.82       0       0     878.4
-----------------------------------------------------------------------------------------------------------------------
5B5          7354-001   WHEEL, SMALL ENCODER     C         69 EA          1   790.05   63.99       0       0    854.04
-----------------------------------------------------------------------------------------------------------------------
6000000      4081       PULLEY,   3/8P   48G,3/4 C         26 EA          1    782.6   63.39       0       0    845.99
                        BORE
-----------------------------------------------------------------------------------------------------------------------
9C5          7336-001   ASSY, LASER, TOF         C         17 EA          1      765   61.97       0       0    826.97
-----------------------------------------------------------------------------------------------------------------------
PH5          8884-001   THERMISTOR,100K,PHEAD    C        218 EA          1      763    61.8       0       0     824.8
-----------------------------------------------------------------------------------------------------------------------
PH2          3518       SCREW,  CAPTIVE,   M6X35 A        136 EA          1    761.6   61.69       0       0    823.29
                        SST
-----------------------------------------------------------------------------------------------------------------------
3000         3091-002   GUIDE,  EDGE,   PARALLEL C         41 EA          1   748.25   60.61       0       0    808.86
                        ROD
-----------------------------------------------------------------------------------------------------------------------
5C6          5380       TOOL,CENTER    LINK,BELT A         21 EA          1      714   57.83       0       0    771.83
                        REP
-----------------------------------------------------------------------------------------------------------------------
500          8319-002   ASSY, BASIN LINKAGE      C         21 EA          1   711.06    57.6       0       0    768.66
-----------------------------------------------------------------------------------------------------------------------
6000         8479-001   TOOL, TEMP WAND          C         30 EA          1    146.7   11.88  150.75  452.25    761.58
-----------------------------------------------------------------------------------------------------------------------
LOC2D1       6341-001   GUAGE,     FORCE    BELT A          5 EA          1   704.25   57.04       0       0    761.29
                        TENSION
-----------------------------------------------------------------------------------------------------------------------
PH5          6264-001   SPACER, HIB NYLON        A       1087 EA          1   689.16   55.82       0       0    744.98
-----------------------------------------------------------------------------------------------------------------------
3000         8136-001   ROD,PARALLEL GUIDE,VE    A         34 EA          1      680   55.08       0       0    735.08
-----------------------------------------------------------------------------------------------------------------------
5B3          4083       BELT,   TIMING,    3/8P, C         70 EA          1      665   53.87       0       0    718.87
                        64GRV
-----------------------------------------------------------------------------------------------------------------------
PH2          8677-001   WEDGE, UMBILICAL BLOCK   C        573 EA          1   658.95   53.37       0       0    712.32
-----------------------------------------------------------------------------------------------------------------------
17A1         8212-002   ASSY, RESERVOIR PCB      C          3 EA          1    630.6   51.08       0       0    681.68
-----------------------------------------------------------------------------------------------------------------------
10000        7977-001   PULLEY, MOD,3/8P,10 GRV  A         31 EA          1      620   50.22       0       0    670.22
-----------------------------------------------------------------------------------------------------------------------
5A5          8977-001   BLOCK, HEATED UMBILICAL  C         10 EA          1      620   50.22       0       0    670.22
-----------------------------------------------------------------------------------------------------------------------
300000       8303-001   SHAFT, LOOP ROLLERS      A         31 EA          1      620   50.22       0       0    670.22
-----------------------------------------------------------------------------------------------------------------------
LOC2F7       8639-001   BRUSH,STATIC,OUTPUT      C         22 EA          1   616.88   49.97       0       0    666.85
                        PAPER
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       26
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
3C4          8144-001   PULLEY,VE           INPT C         22 EA          1    611.6   49.54       0       0    661.14
                        LOOP,68GRV
-----------------------------------------------------------------------------------------------------------------------
8B6          8885-002   ASSY,   HEAD   PWR   BRD C          2 EA          1   479.76   38.86    26.8    80.4    625.82
                        CONFIG
-----------------------------------------------------------------------------------------------------------------------
6000         5382       TOOL, HANDLE, BELT REP.  A         19 EA          1      570   46.17       0       0    616.17
-----------------------------------------------------------------------------------------------------------------------
CABINET      5025       Q-SEAL                   A       5258 EA       1000   562.61   45.57       0       0    608.18
-----------------------------------------------------------------------------------------------------------------------
LOC2G5       4328-002   CABLE,   37  SUB-D   40' C          3 EA          1      555   44.96       0       0    599.96
                        PLENU
-----------------------------------------------------------------------------------------------------------------------
5A6          5360       GUIDE, PAPER RLR SCREW   A         41 EA          1   551.45   44.67       0       0    596.12
-----------------------------------------------------------------------------------------------------------------------
6A2          6985-001   ASSY, AIR PUMP           C          4 EA          1      550   44.55       0       0    594.55
-----------------------------------------------------------------------------------------------------------------------
PH1          7638-002   ASSY, PLATE 300 DPI PH   C          7 EA          1   307.94   24.94   58.63  175.88    567.38
-----------------------------------------------------------------------------------------------------------------------
3C1          6934-002   SNSR, REFLECTIVE ARRAYED C          7 EA          1   498.75    40.4       0       0    539.15
-----------------------------------------------------------------------------------------------------------------------
11A4         5650-004   ASSY,    TOP   OF   FORM C          5 EA          1    498.1   40.35       0       0    538.45
                        SENSORS
-----------------------------------------------------------------------------------------------------------------------
8C4          8955-001   SNSR, CURRENT 50A CONFIG C          5 EA          1      475   38.48    1.48     2.8    517.75
-----------------------------------------------------------------------------------------------------------------------
PH4          6663-002   STUD, 10-32 HYDROLIC     C        236 EA          1      472   38.23       0       0    510.23
-----------------------------------------------------------------------------------------------------------------------
PH6          8130-001   BRACKET, HIB TOP         A         97 EA          1   470.45   38.11       0       0    508.56
-----------------------------------------------------------------------------------------------------------------------
PH3          6501-002   PIN    DOWEL,1/8X7/8   L A        512 EA          1   465.92   37.74       0       0    503.66
                        W/LED
-----------------------------------------------------------------------------------------------------------------------
5A2          7646-001   WHEEL, ENCODER,300 DPI   C         17 EA          1      442    35.8       0       0     477.8
-----------------------------------------------------------------------------------------------------------------------
3000000      6257-001   SHAFT, OUTLOOP DRIVE     A         20 EA          1      440   35.64       0       0    475.64
-----------------------------------------------------------------------------------------------------------------------
4B2          8123-002   HARN, PURGE TUBE,PWR     C         64 EA          1    435.2   35.25       0       0    470.45
-----------------------------------------------------------------------------------------------------------------------
1500         8676-001   ASSY,       PLATEN,FRONT C          3 EA          1      432   34.99       0       0    466.99
                        SENSOR
-----------------------------------------------------------------------------------------------------------------------
9B2          3146       BRUSH, ANTI-STATIC       C         42 EA          1    430.5   34.87       0       0    465.37
-----------------------------------------------------------------------------------------------------------------------
9B2          8207-001   RLY/PW/12VDC/30AMP/DPSTNDC          8 EA          1      420   34.02       0       0    454.02
-----------------------------------------------------------------------------------------------------------------------
16A2         7802-002   ASSY, ISA  CARD          C          2 EA          1   414.74   33.59       0       0    448.33
-----------------------------------------------------------------------------------------------------------------------
PH6          6821-003   ASSY, DROOL CUP W/HEATER A          8 EA          1   158.82   12.86      67     201    439.69
-----------------------------------------------------------------------------------------------------------------------
9000         7618-001   FAN, DENSITRON           C          9 EA          1      405   32.81       0       0    437.81
-----------------------------------------------------------------------------------------------------------------------
900          8926-001   ASSY, PURGE FIXTURE PCB  C         10 EA          1      400    32.4       0       0     432.4
-----------------------------------------------------------------------------------------------------------------------
6C3          8028-001   HOUSING,BRG,BELT         A         49 EA          1   397.39   32.19       0       0    429.58
                        STEERING
-----------------------------------------------------------------------------------------------------------------------
15C3         8675-001   ASSY, PLATEN,REAR,SENSOR C          3 EA          1   394.26   31.94       0       0     426.2
-----------------------------------------------------------------------------------------------------------------------
7000         6926-001   BLOCK, CAM TOP           A         57 EA          1   390.45   31.63       0       0    422.08
-----------------------------------------------------------------------------------------------------------------------
7000         6924-001   BLOCK, CAM BOTTOM        A         57 EA          1   390.45   31.63       0       0    422.08
-----------------------------------------------------------------------------------------------------------------------
PH7          7640-002   ASSY, 300 DPI DROOL CUP  A         10 EA          1   266.22   21.56    33.5   100.5    421.78
-----------------------------------------------------------------------------------------------------------------------
PH5          8332-001   STANDOFF F-F M4X22MM LG  A        265 EA          1    386.9   31.34       0       0    418.24
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       27
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
LOC2A3       5385       ASSY, LOCK MNT,BELT REP. A          4 EA          1   261.56   21.19    33.5   100.5    416.75
-----------------------------------------------------------------------------------------------------------------------
FLOOR        4393       WASHER,  SHLDR,  INSLTNG C       1000 EA          1      380   30.78       0       0    410.78
                        #4
-----------------------------------------------------------------------------------------------------------------------
100          3038-002   ROLLER, BELT BACK-UP     A         44 EA          1      374   30.29       0       0    404.29
-----------------------------------------------------------------------------------------------------------------------
PH6          8129-002   BRKT, HIB BOTTOM         C         70 EA          1    367.5   29.77       0       0    397.27
-----------------------------------------------------------------------------------------------------------------------
16A1         8020-001   ASSY, PLATEN,FRONT,BTM   C          3 EA          1   360.78   29.22       0       0       390
-----------------------------------------------------------------------------------------------------------------------
LOC2A4       5384       PIN,               QUICK A         19 EA          1   354.16   28.69       0       0    382.85
                        DISCONNECT,3.5
-----------------------------------------------------------------------------------------------------------------------
1100         8141-001   SPACER,.5IDX.62OD,.O94LG A        166 EA          1   345.28   27.97       0       0    373.25
-----------------------------------------------------------------------------------------------------------------------
LOC2A4       5392       PIN,QUICK     DISCONNECT A         19 EA          1   325.85   26.39       0       0    352.24
                        2"LG
-----------------------------------------------------------------------------------------------------------------------
5000         8710-001   CKT BRKR/30A/4POLE/400V  C          5 EA          1    322.2    26.1       0       0     348.3
-----------------------------------------------------------------------------------------------------------------------
16A1         8022-001   ASSY, PLATEN,REAR,BTM    C          3 EA          1   318.78   25.82       0       0     344.6
-----------------------------------------------------------------------------------------------------------------------
10000000     2102       FITG,    CONN(MOD),    M A         18 EA          1   316.26   25.62       0       0    341.88
                        1/8TBG
-----------------------------------------------------------------------------------------------------------------------
LOC2D3       3678       O-RING, UMBILICAL        C        142 EA          1    312.4    25.3       0       0     337.7
-----------------------------------------------------------------------------------------------------------------------
3A5          8534-001   SHAFT, BELT TENSION TOOL A         25 EA          1      300    24.3       0       0     324.3
-----------------------------------------------------------------------------------------------------------------------
10A2         295        FITTING,             TEE C        310 EA          1    297.6   24.11       0       0    321.71
                        1/8X1/16X1/8
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       6542-001   ROD, DANCER              C         23 EA          1    294.4   23.85       0       0    318.25
-----------------------------------------------------------------------------------------------------------------------
10B4         8151-001   PULLEY, OUTPUT MOTOR     C         21 EA          1      294   23.81       0       0    317.81
-----------------------------------------------------------------------------------------------------------------------
CUST-RTN     8692-002   ASSY, HEAD DRIVER BOARD  C          1 EA          1   289.61   23.46       0       0    313.07
-----------------------------------------------------------------------------------------------------------------------
8000000      8484-001   BRKT, PURGE TUBE,TOP     A         24 EA          1   286.08   23.17       0       0    309.25
-----------------------------------------------------------------------------------------------------------------------
11C5         8043-001   GUIDE,URETH    RL   FIXD A         31 EA          1   283.65   22.98       0       0    306.63
                        PAPER
-----------------------------------------------------------------------------------------------------------------------
8A3          9140-001   SHIELD,             TEMP C         99 EA          1   282.15   22.85       0       0       305
                        SENSOR,PURGE
-----------------------------------------------------------------------------------------------------------------------
9B6          7576-001   FUSE/4A/250/.25X1.25/SB  C        426 EA          1   281.16   22.77       0       0    303.93
-----------------------------------------------------------------------------------------------------------------------
PH5          8961-001   TIE,   CABLE   3.625",HI C        500 EA          1   280.55   22.72       0       0    303.27
                        TEMP
-----------------------------------------------------------------------------------------------------------------------
9B2          2677       BRUSH, STATIC,WIRE, 1/2  C         28 EA          1    278.6   22.57       0       0    301.17
-----------------------------------------------------------------------------------------------------------------------
1000         7699-001   ROLLER, STUD MOUNT PINCH C         21 EA          1    268.8   21.77       0       0    290.57
-----------------------------------------------------------------------------------------------------------------------
8B2          8889-001   FRU,UMBILICAL            C          5 EA          1   265.42    21.5       0       0    286.92
                        FITTINGS,VE
-----------------------------------------------------------------------------------------------------------------------
9B4          7949-001   ASSY, SNSR ROLLER SPEED  C         20 EA          1      260   21.06       0       0    281.06
-----------------------------------------------------------------------------------------------------------------------
3A3          8846-001   ASSY,SILICONE NIP RLR RH C          7 EA          1      259   20.98       0       0    279.98
-----------------------------------------------------------------------------------------------------------------------
PH5          8171-002   COVER, PRINTHEAD HIB     C        114 EA          1    256.5   20.78       0       0    277.28
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       28
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
7A5          7978-001   SHAFT, DANCER,RLR        A         16 EA          1      256   20.74       0       0    276.74
-----------------------------------------------------------------------------------------------------------------------
70000        6925-001   BLOCK, CAM MIDDLE        A         37 EA          1   253.45   20.53       0       0    273.98
-----------------------------------------------------------------------------------------------------------------------
6C2          4082       PULLEY,     3/8P,15G,5/8 C         23 EA          1   251.16   20.34       0       0     271.5
                        BORE
-----------------------------------------------------------------------------------------------------------------------
500          7539-001   CKT BRKR/DUAL 20A HI     C          8 EA          1   249.76   20.23       0       0    269.99
-----------------------------------------------------------------------------------------------------------------------
30000000     6812-003   PLATE, REGULATOR         A         15 EA          1    247.5   20.05       0       0    267.55
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       9056-001   TUBING,   SHRINK,   .375 C        960 IN         12      236   19.12       0       0    255.12
                        BLUE
-----------------------------------------------------------------------------------------------------------------------
10000        6666-003   FITTING,UMBILICAL,BASE   C         47 EA          1      235   19.04       0       0    254.04
-----------------------------------------------------------------------------------------------------------------------
LOC2A3       7338-001   TUBING,  SILICONE  1/16" C      15636 IN         12   234.54      19       0       0    253.54
                        ID
-----------------------------------------------------------------------------------------------------------------------
10000        8873-001   PULLEY, MOD,3mmP X .25ID C         20 EA          1      232   18.79       0       0    250.79
-----------------------------------------------------------------------------------------------------------------------
7000         6343-001   CHANNEL, FORCE GAUGE     A         29 EA          1      232   18.79       0       0    250.79
-----------------------------------------------------------------------------------------------------------------------
70000        6344-001   CHANNEL,   FORCE  GAUGE, A         29 EA          1      232   18.79       0       0    250.79
                        MTG
-----------------------------------------------------------------------------------------------------------------------
4000         8222-002   ASSY, BASIN LED          C         30 EA          1    229.8   18.61       0       0    248.41
-----------------------------------------------------------------------------------------------------------------------
6A6          5358       GUIDE, PAPER ROLLER      A         25 EA          1   228.75   18.53       0       0    247.28
-----------------------------------------------------------------------------------------------------------------------
60000        8976-001   BLOCK, PURGE FIXTURE MTG C          3 EA          1    223.5    18.1       0       0     241.6
-----------------------------------------------------------------------------------------------------------------------
3B1          8847-001   ASSY,  SILICONE  NIP RLR C          6 EA          1      222   17.98       0       0    239.98
                        LH
-----------------------------------------------------------------------------------------------------------------------
300          6390-001   ASSY, RLR, MOUNT, LEFT   C          6 EA          1      222   17.98       0       0    239.98
-----------------------------------------------------------------------------------------------------------------------
9C5          7884-001   RLY/SS/10A/240V/PF240D25 C         19 EA          1    216.6   17.54       0       0    234.14
-----------------------------------------------------------------------------------------------------------------------
300          7859-001   PLATE, GUIDE,DANCER      A         34 EA          1    215.9   17.49       0       0    233.39
-----------------------------------------------------------------------------------------------------------------------
PH3          8150-001   ASSY, 6IN UMBILICAL HTR  C         11 EA          1    214.5   17.37       0       0    231.87
-----------------------------------------------------------------------------------------------------------------------
90           2596       FAN,   24V,100  CFM,BALL C          8 EA          1    213.6    17.3       0       0     230.9
                        BRG
-----------------------------------------------------------------------------------------------------------------------
11A3         5497       BRG, SPH, .5 ID  .875 OD A         27 EA          1   213.03   17.26       0       0    230.29
-----------------------------------------------------------------------------------------------------------------------
11A6         8848-001   BELT, TMG NO-SLIDE,56"   C         13 EA          1   211.64   17.14       0       0    228.78
-----------------------------------------------------------------------------------------------------------------------
9A2          8984-001   FUSE/5A/250V/5x20/UL,CSA C         36 EA          1   203.04   16.45       0       0    219.49
-----------------------------------------------------------------------------------------------------------------------
400          8305-001   ASSY, BASIN TOP COVER    C         21 EA          1   199.92   16.19       0       0    216.11
-----------------------------------------------------------------------------------------------------------------------
8000000      7153-001   BAR, INSULATOR           A         21 EA          1    197.4   15.99       0       0    213.39
-----------------------------------------------------------------------------------------------------------------------
4000         8839-001   FRU,RES MOTOR SENSOR VE  C         25 EA          1    196.5   15.92       0       0    212.42
-----------------------------------------------------------------------------------------------------------------------
5B3          8133-001   BELT,TIMING,3MMPX157GX9MMC         43 EA          1   191.78   15.53       0       0    207.31
-----------------------------------------------------------------------------------------------------------------------
10B7         7979-001   SPACER, DANCER BEARING   A         34 EA          1    183.6   14.87       0       0    198.47
-----------------------------------------------------------------------------------------------------------------------
LOC2G7       444        3 1/2" FLOPPY DRIVE      C          4 EA          1      180   14.58       0       0    194.58
-----------------------------------------------------------------------------------------------------------------------
70000        7154-001   ANGLE, MOUNT             A         26 EA          1   177.06   14.34       0       0     191.4
-----------------------------------------------------------------------------------------------------------------------
PH3          7113-001   ASSY, CUP/BLOCK HEATER   C         19 EA          1   174.42   14.13       0       0    188.55
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       29
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
7B3          5387       LOCK, BELT REP.          A         19 EA          1   173.85   14.08       0       0    187.93
-----------------------------------------------------------------------------------------------------------------------
8A5          3548       ADHESIVE, LOCTITE, 609   A          8 EA          1   172.56   13.98       0       0    186.54
-----------------------------------------------------------------------------------------------------------------------
3B2          8480-001   WAND, TEMP               A         72 EA          1    169.2   13.71       0       0    182.91
-----------------------------------------------------------------------------------------------------------------------
9A7          7952-002   ASSY, TEMP SENSOR        C         20 EA          1      167   13.53       0       0    180.53
-----------------------------------------------------------------------------------------------------------------------
800000       7860-001   SPACER, DANCER SHAFT     A         34 EA          1    163.2   13.22       0       0    176.42
-----------------------------------------------------------------------------------------------------------------------
10A1         7470-001   SCREW,SHS      .25X.38LG A        100 EA          1      163    13.2       0       0     176.2
                        SHLDR
-----------------------------------------------------------------------------------------------------------------------
PH3          8934-001   FITTING,SWIVEL     ELBOW C         87 EA          1   161.17   13.05       0       0    174.22
                        MALE
-----------------------------------------------------------------------------------------------------------------------
PH5          6825-001   BLOCK, CUP MOUNT         A        129 EA          1    158.8   12.86       0       0    171.66
-----------------------------------------------------------------------------------------------------------------------
10A5         5395       SPRING, COMP. 12.9 LB    A         99 EA          1   147.51   11.95       0       0    159.46
-----------------------------------------------------------------------------------------------------------------------
500          7538-001   CKT,BRKR/DUAL 15A        C          5 EA          1    147.5   11.95       0       0    159.45
-----------------------------------------------------------------------------------------------------------------------
PH4          6753-002   WSHR, INSUL, .2IDX.5OD   A        115 EA          1   143.75   11.64       0       0    155.39
-----------------------------------------------------------------------------------------------------------------------
PH1          6499-003   BLOCK,         PRINTHEAD C         13 EA          1   141.05   11.43       0       0    152.48
                        MANIFOLD
-----------------------------------------------------------------------------------------------------------------------
100          2947       RING, TOLERANCE, 45 X 10 A         70 EA          1      140   11.34       0       0    151.34
-----------------------------------------------------------------------------------------------------------------------
10A1         6071-001   SPHERE, FORCE DIAL, 1"   A         28 EA          1    135.8      11       0       0     146.8
-----------------------------------------------------------------------------------------------------------------------
9A5          4378       SWITCH,     THERMAL,125C C         32 EA          1   135.36   10.96       0       0    146.32
                        OPEN
-----------------------------------------------------------------------------------------------------------------------
8B3          5389       LEVER, LOCK, BELT REP.   A         20 EA          1      135   10.94       0       0    145.94
-----------------------------------------------------------------------------------------------------------------------
9A1          6016-001   SWITCH,     THERMAL,135C C         21 EA          1    132.3   10.72       0       0    143.02
                        OPEN
-----------------------------------------------------------------------------------------------------------------------
100          2946       RING, TOLERANCE, 77 X 12 A         29 EA          1    130.5   10.57       0       0    141.07
-----------------------------------------------------------------------------------------------------------------------
LOC2D3       3673       O-RING, PEEK FITTING     C        514 EA          1    128.5   10.41       0       0    138.91
-----------------------------------------------------------------------------------------------------------------------
PH5          8329-001   CON/PLUG/1X5/.1"/DC/MO/CGA        167 EA          1   125.25   10.15       0       0     135.4
-----------------------------------------------------------------------------------------------------------------------
LOC2B2       4792       RLY/SS/3-32VDC/25AAC/SPNDC          8 EA          1   120.48    9.76       0       0    130.24
-----------------------------------------------------------------------------------------------------------------------
96JET13      6662-002   PLUG 10-32 SLOTTED SS    C         46 EA          1   119.14    9.65       0       0    128.79
-----------------------------------------------------------------------------------------------------------------------
30000        7703-001   RING, INT RETAIN, 3.062  A         95 EA          1   117.61    9.53       0       0    127.14
-----------------------------------------------------------------------------------------------------------------------
CABINET      5024       Q-TAPE, 3"               A      53592 IN       2160   117.11    9.49       0       0    126.59
-----------------------------------------------------------------------------------------------------------------------
9A4          8626-001   CAP./120KUF/50V/ALUM     C          5 EA          1    115.3    9.34       0       0    124.64
-----------------------------------------------------------------------------------------------------------------------
11A4         5857-001   SWITCH, MOMENTARY ACTION C         14 EA          1   115.08    9.32       0       0     124.4
-----------------------------------------------------------------------------------------------------------------------
7B3          6543-001   DISC, SENSOR TARGET      A          6 EA          1   115.02    9.32       0       0    124.34
-----------------------------------------------------------------------------------------------------------------------
11A2         3096       COLLAR, #CL-8-F          A         77 EA          1   112.42    9.11       0       0    121.53
-----------------------------------------------------------------------------------------------------------------------
PH5          8637-001   BRKT,MINI      UMBILICAL C         62 EA          1    111.6    9.04       0       0    120.64
                        GUIDE
-----------------------------------------------------------------------------------------------------------------------
PH6          7316-001   MOUNT,HEATER DROOL CUP   A        111 EA          1   110.33    8.94       0       0    119.27
-----------------------------------------------------------------------------------------------------------------------
9B3          8713-001   FUSE/20A/32V/.25X1.25/SB C        114 EA          1   109.44    8.86       0       0     118.3
-----------------------------------------------------------------------------------------------------------------------
9A2          9064-001   FUSE/1.0A/250V/SB/TR5    C        206 EA          1   105.06    8.51       0       0    113.57
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       30
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
100000       6767-001   TOOL,   WRENCH   1/2"  x A         18 EA          1   104.94     8.5       0       0    113.44
                        9/16"
-----------------------------------------------------------------------------------------------------------------------
4A2          9003-001   HANDLE, PURGE FIXTURE    C         10 EA          1    104.5    8.46       0       0    112.96
-----------------------------------------------------------------------------------------------------------------------
16A1         7961-001   FILTER, AIR INLET CM     C         38 EA          1    102.6    8.31       0       0    110.91
-----------------------------------------------------------------------------------------------------------------------
10C3         961        LABEL, SELF LAMINATING   A       3414 EA          1   102.42     8.3       0       0    110.72
-----------------------------------------------------------------------------------------------------------------------
8A5          3029       ADHESIVE,          #222, A          5 OZ          1    101.7    8.24       0       0    109.94
                        REMOVABLE
-----------------------------------------------------------------------------------------------------------------------
600          8068-001   WAVE                     A        412 EA          1    98.06    7.94       0       0       106
                        SPRING,.531ID,.734OD
-----------------------------------------------------------------------------------------------------------------------
4A3          8833-001   HARN, LOAD RESISTOR, VE  C         11 EA          1     97.9    7.93       0       0    105.83
-----------------------------------------------------------------------------------------------------------------------
9B7          7880-001   FUSE/5A/250V/TR5/UL-CSA  C        171 EA          1    96.44    7.81       0       0    104.26
-----------------------------------------------------------------------------------------------------------------------
100000000    6286-002   KEY, 3/32 SQ. X 1/2"     A         60 EA          1       96    7.78       0       0    103.78
-----------------------------------------------------------------------------------------------------------------------
7B6          8124-001   BRKT, PURGE TUBE SAFETY  A         19 EA          1    95.95    7.77       0       0    103.72
-----------------------------------------------------------------------------------------------------------------------
90000        8711-001   CKT BRKR/50A/3POLE/240V  C          2 EA          1    95.92    7.77       0       0    103.69
-----------------------------------------------------------------------------------------------------------------------
10A4         8269-001   RING, INNER              A         24 EA          1    95.76    7.76       0       0    103.52
-----------------------------------------------------------------------------------------------------------------------
4B4          9059-001   HARN, TOF VE-HC2         C         12 EA          1    94.56    7.66       0       0    102.22
-----------------------------------------------------------------------------------------------------------------------
6A2          6986-001   ASSY, PURGE VALVE        C          2 EA          1       93    7.53       0       0    100.53
-----------------------------------------------------------------------------------------------------------------------
10A5         7989-001   BEARING, BALL            A         29 EA          1       87    7.05       0       0     94.05
-----------------------------------------------------------------------------------------------------------------------
8C2          8836-001   TUBING,NORPRENE,1/8ID,CRMC       1815 IN         12    86.21    6.98       0       0      93.2
-----------------------------------------------------------------------------------------------------------------------
LOC2A2       6984-001   FILTER, ELEMENT, AIR     C         10 EA          1       86    6.97       0       0     92.97
-----------------------------------------------------------------------------------------------------------------------
PH2          3205       FITTING, BARB, 1/16 ID   C        278 EA          1     85.9    6.96       0       0     92.86
-----------------------------------------------------------------------------------------------------------------------
PH2          296        FITTING, TEE, 1/16" ID   C        108 EA          1    84.24    6.82       0       0     91.06
-----------------------------------------------------------------------------------------------------------------------
8C2          8837-001   TUBING,NORPRENE,1/8ID,BLKC       2187 IN         12    83.84    6.79       0       0     90.63
-----------------------------------------------------------------------------------------------------------------------
10A5         8152-001   PULLEY, OUTPUT ROLLER    C          3 EA          1     83.4    6.76       0       0     90.16
-----------------------------------------------------------------------------------------------------------------------
100          2671       BRG,  NDL,  RLR,45 ID,62 A          4 EA          1    79.12    6.41       0       0     85.53
                        OD
-----------------------------------------------------------------------------------------------------------------------
PH2          4284-003   CABLE, UMBILICAL POWER   A         84 EA          1    78.96     6.4       0       0     85.36
-----------------------------------------------------------------------------------------------------------------------
10B3         8270-001   CLUTCH, DC ROLLER        A         19 EA          1    76.38    6.19       0       0     82.57
-----------------------------------------------------------------------------------------------------------------------
11C4         7959-001   ACTUATOR, MAG POSITION   C         35 EA          1    76.16    6.17       0       0     82.33
-----------------------------------------------------------------------------------------------------------------------
LOC2J2       3674       PEEK, FITTING            C          5 EA          1       75    6.08       0       0     81.08
-----------------------------------------------------------------------------------------------------------------------
8B2          9083-001   BRKT, DROOL CUP ADAPTER  C         10 EA          1       75    6.08       0       0     81.08
-----------------------------------------------------------------------------------------------------------------------
4000         9073-001   FRU, RSRVR TEMP SENSOR   C          3 EA          1    75.01    6.08       0       0     81.08
-----------------------------------------------------------------------------------------------------------------------
15C2         7593-001   0000255 TUBING 45IN FRU  C         16 EA          1       75    6.08       0       0     81.08
-----------------------------------------------------------------------------------------------------------------------
100          7985-001   SPACER,DANCER      GUIDE A         34 EA          1     74.8    6.06       0       0     80.86
                        PLATE
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       31
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
9B7          7580-001   FUSE/10A/250/.25X1.25/SB C        156 EA          1    73.32    5.94       0       0     79.26
-----------------------------------------------------------------------------------------------------------------------
100000000    5518       LATCH, PAPER GUIDE       A         25 EA          1     72.5    5.87       0       0     78.37
-----------------------------------------------------------------------------------------------------------------------
11A3         5357-003   BRUSH,   VE  DANCER  RLR C         10 EA          1     71.1    5.76       0       0     76.86
                        STAT
-----------------------------------------------------------------------------------------------------------------------
100          3095-002   COLLAR,MOD CL-8-F .5ID   A          6 EA          1    69.54    5.63       0       0     75.17
-----------------------------------------------------------------------------------------------------------------------
10A1         1948       SPRING,    EXT,    ASSOC C         44 EA          1    67.32    5.45       0       0     72.77
                        SPRING
-----------------------------------------------------------------------------------------------------------------------
100000       6766-001   TOOL, 5/16 NUT DRIVER    A         18 EA          1     63.9    5.18       0       0     69.08
-----------------------------------------------------------------------------------------------------------------------
10B3         8981-001   FITTING,ADJUST      BARB C         10 EA          1       63     5.1       0       0      68.1
                        ELBOW
-----------------------------------------------------------------------------------------------------------------------
CUST-RTN     7325-002   CLAMP, PRINTHEAD CLAMP   C         16 EA          1    60.96    4.94       0       0      65.9
-----------------------------------------------------------------------------------------------------------------------
50000        2266       TERM,FEM,QIK             A        532 EA          1    60.12    4.87       0       0     64.99
                        DISC,16-14WG
-----------------------------------------------------------------------------------------------------------------------
5000         8783-001   KIT,AUTOTHREAD SW VE FRU C          6 EA          1    58.62    4.75       0       0     63.37
-----------------------------------------------------------------------------------------------------------------------
11C3         7958-001   SNSR, MAGNETIC POSITION  C         18 EA          1    56.61    4.59       0       0      61.2
-----------------------------------------------------------------------------------------------------------------------
1000         3696       BRG, BALL, HI-TEMP       A          5 EA          1    56.25    4.56       0       0     60.81
-----------------------------------------------------------------------------------------------------------------------
PH2          5175       BSHG, DRILL 5/16 P-TYPE  A         22 EA          1    56.03    4.54       0       0     60.57
-----------------------------------------------------------------------------------------------------------------------
LOC2K2       8452-002   TUBING,SILICONE,CLEAR    C        522 IN         12    55.72    4.51       0       0     60.24
-----------------------------------------------------------------------------------------------------------------------
10A2         3204       O-RING, VITON 008        C        730 EA          1    55.48    4.49       0       0     59.97
-----------------------------------------------------------------------------------------------------------------------
6B3          521        CONN,   MINIFIT,   MALE, A        129 EA          1    54.83    4.44       0       0     59.27
                        HSG,
-----------------------------------------------------------------------------------------------------------------------
600          8069-001   WSHR, LRG OD,#8          A        996 EA          1    54.78    4.44       0       0     59.22
-----------------------------------------------------------------------------------------------------------------------
16A1         8751-001   FILTER, OUTPUT LOOP      C         19 EA          1    51.78    4.19       0       0     55.97
-----------------------------------------------------------------------------------------------------------------------
10A2         3001       SPACER,     .5    IDX.62 C         24 EA          1    50.88    4.12       0       0        55
                        OD.25LG
-----------------------------------------------------------------------------------------------------------------------
40000        3714       LABEL, .378 X .375       A       4984 EA          1    49.84    4.04       0       0     53.88
-----------------------------------------------------------------------------------------------------------------------
LOC2E3       8911-001   TOOL, BULB INSTALL,VE    C          9 EA          1     47.7    3.86       0       0     51.56
-----------------------------------------------------------------------------------------------------------------------
8A5          3547       ADHESIVE, LOCTITE, 545   A          2 EA          1    47.02    3.81       0       0     50.83
-----------------------------------------------------------------------------------------------------------------------
10C5         8481-001   LABEL, TEMP,30-90 C      A         39 EA          1     46.8    3.79       0       0     50.59
-----------------------------------------------------------------------------------------------------------------------
10C5         8482-001   LABEL, TEMP,90-120 C     A         39 EA          1     46.8    3.79       0       0     50.59
-----------------------------------------------------------------------------------------------------------------------
PH2          3206       FITTING, BARB, 1/8 ID    C        154 EA          1    46.35    3.75       0       0     50.11
-----------------------------------------------------------------------------------------------------------------------
PH3          5581-001   SPRING, EXTENSION        C         88 EA          1    45.76    3.71       0       0     49.47
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       3065       BELT, TIMING, 3/8P, 100' A        156 IN         12    45.24    3.66       0       0      48.9
-----------------------------------------------------------------------------------------------------------------------
10A6         7619-001   BATTERY, DENSITRON       C          3 EA          1       45    3.65       0       0     48.65
-----------------------------------------------------------------------------------------------------------------------
9A2          4309       FUSE/8A/250V/.25         C         72 EA          1    44.64    3.62       0       0     48.26
                        x1.25/FB
-----------------------------------------------------------------------------------------------------------------------
5C4          871        TERM, RING TNG, #4 STUD, A        230 EA          1    44.37    3.59       0       0     47.96
-----------------------------------------------------------------------------------------------------------------------
LOC2K3       6889-001   POST,LATCHING            A         65 EA          1     44.2    3.58       0       0     47.78
                        AMP787003-3
-----------------------------------------------------------------------------------------------------------------------
9B3          8386-001   SURGE LIMITER/15AMPS     C         16 EA          1     43.2     3.5       0       0      46.7
-----------------------------------------------------------------------------------------------------------------------
8A6          8834-001   ADHESIVE, LOCTITE 680    C          5 EA          1     43.2     3.5       0       0      46.7
-----------------------------------------------------------------------------------------------------------------------
PH4          6752-001   PUSHNUT,1/8              A        192 EA         50     42.2    3.42       0       0     45.62
                        SHAFT,18-8SST
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       32
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
LOC2F5       8616-001   CASTER,2.5"DX1.125"W     C          8 EA          1     41.6    3.37       0       0     44.97
                        150#
-----------------------------------------------------------------------------------------------------------------------
11A4         5859-001   SWITCH, MOUNTING NUT     A         59 EA          1     41.3    3.35       0       0     44.65
-----------------------------------------------------------------------------------------------------------------------
9B4          2115       RLY/SS/5A/CX240D5        C          5 EA          1     40.5    3.28       0       0     43.78
-----------------------------------------------------------------------------------------------------------------------
9B7          2640       FUSE/10A/250V/.25X1.2/F/UC        190 EA          1       38    3.08       0       0     41.08
-----------------------------------------------------------------------------------------------------------------------
6B4          8147-001   FITTING,        BULKHEAD C         73 EA          1    37.23    3.02       0       0     40.25
                        1/8-1/8
-----------------------------------------------------------------------------------------------------------------------
10A2         8024-001   SCREW, SHS,3/8X.625LG    A         36 EA          1    37.08       3       0       0     40.08
-----------------------------------------------------------------------------------------------------------------------
PH6          7210-001   CON/PLUG/1X2/.1"/DC/MO/CGA        367 EA          1     36.7    2.97       0       0     39.67
-----------------------------------------------------------------------------------------------------------------------
600          8070-001   SCREW, PHP,M4X10MM       A        649 EA          1    36.34    2.94       0       0     39.29
-----------------------------------------------------------------------------------------------------------------------
8A3          8975-001   ASSY, FIXTURE THERMISTOR C         10 EA          1     36.2    2.93       0       0     39.13
-----------------------------------------------------------------------------------------------------------------------
9B7          8753-001   FUSE/2A/250V/TR5/FAST    C         70 EA          1    35.42    2.87       0       0     38.29
-----------------------------------------------------------------------------------------------------------------------
PH5          7044-001   CON/PSK/22-24/MO/C-GRID  A        588 EA          1    35.28    2.86       0       0     38.14
-----------------------------------------------------------------------------------------------------------------------
LOC2FLR      6070-001   BOX,SUPERSTRUCTURE       A        219 EA          1    35.04    2.84       0       0     37.88
                        MAILER
-----------------------------------------------------------------------------------------------------------------------
LOC2E3       8944-001   SWITCH, THERMAL,95C,MOD  C          3 EA          1     34.5    2.79       0       0     37.29
-----------------------------------------------------------------------------------------------------------------------
150          252        TUBING, URETHANE, RED,   C       3408 IN         12    34.08    2.76       0       0     36.84
-----------------------------------------------------------------------------------------------------------------------
PH5          7034-001   SPACER,                  A         22 EA          1    32.56    2.64       0       0      35.2
                        .25IDX.37ODX.38LG
-----------------------------------------------------------------------------------------------------------------------
PH4          6770-001   WASHER, BEVEL NO.8 SS    A        120 EA          1     32.4    2.62       0       0     35.02
-----------------------------------------------------------------------------------------------------------------------
9C5          7952-001   ASSY, TEMP SENSOR        C          4 EA          1    31.88    2.58       0       0     34.46
-----------------------------------------------------------------------------------------------------------------------
8B2          9055-001   SPACER,.192IDX5/16ODX3/8LC         10 EA          1       31    2.51       0       0     33.51
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       1036       TUBING, SHRINK, .250"    A       1303 IN         12     30.4    2.46       0       0     32.87
-----------------------------------------------------------------------------------------------------------------------
6B3          541        TERMINAL, MALE 24-18AWG  A        752 EA          1    30.08    2.44       0       0     32.52
-----------------------------------------------------------------------------------------------------------------------
PH3          8935-001   ASSY, PH BODY THERMISTOR C          2 EA          1     8.74    0.71    5.36   16.08     30.89
-----------------------------------------------------------------------------------------------------------------------
96JET12      2641       FUSE/.5A/250V/TR5        C         71 EA          1    26.98    2.19       0       0     29.17
-----------------------------------------------------------------------------------------------------------------------
96JET13      582        HSG,   MINIFIT   FEMALE, A        154 EA          1    25.87     2.1       0       0     27.97
                        4POS
-----------------------------------------------------------------------------------------------------------------------
40           8540-001   ASSY, THERMISTOR         C          1 EA          1    24.98    2.02       0       0        27
-----------------------------------------------------------------------------------------------------------------------
30           5519       ASSY, GUIDE, PAPER, RLR  A          1 EA          1    12.38       1    3.35   10.05     26.78
-----------------------------------------------------------------------------------------------------------------------
10B3         7702-001   RING, EXT RETAIN, 1.772  A         92 EA          1    23.64    1.92       0       0     25.56
-----------------------------------------------------------------------------------------------------------------------
10A2         8628-001   SCREW, PPH,10-24 X 5/8"  C         72 EA          1    20.88    1.69       0       0     22.57
-----------------------------------------------------------------------------------------------------------------------
10A2         3000       RING, RETAINING, 5555-50 C         84 EA          1    20.16    1.63       0       0     21.79
-----------------------------------------------------------------------------------------------------------------------
8A1          8970-001   TUBING, .06 SILICONE,28" C          6 EA          1     19.2    1.56       0       0     20.76
-----------------------------------------------------------------------------------------------------------------------
5000         8909-001   FUSE, THERMAL 144 DEG    C          5 EA          1     19.1    1.55       0       0     20.65
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       33
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
5000         2835       CON/TERMBLOCK/8/14-AWG   A         39 EA          1    18.72    1.52       0       0     20.24
-----------------------------------------------------------------------------------------------------------------------
8A4          1690       COMPOUND, THERMAL        C          9 EA          1    18.45    1.49       0       0     19.94
-----------------------------------------------------------------------------------------------------------------------
10A2         3089       SCREW,  THUMB,  10-32  X A        100 EA          1    17.63    1.43       0       0     19.06
                        1/2
-----------------------------------------------------------------------------------------------------------------------
5B2          5832       BELT,TIMING              C          5 EA          1    17.45    1.41       0       0     18.86
                        3mmPx113Gx9mm
-----------------------------------------------------------------------------------------------------------------------
LOC2F5       8618-001   LEVELING PAD,3/8X16,4"   C          8 EA          1    16.88    1.37       0       0     18.25
-----------------------------------------------------------------------------------------------------------------------
9A2          7798-001   FUSE/4A/250V/TR5/TIME-LAGC         41 EA          1    16.81    1.36       0       0     18.17
-----------------------------------------------------------------------------------------------------------------------
8B2          8973-001   SPACER,                  C          6 EA          1     16.8    1.36       0       0     18.16
                        .25IDX.37ODX.56LG
-----------------------------------------------------------------------------------------------------------------------
10B7         8051-001   BRG, BALL,HI-TEMP        C          2 EA          1    16.66    1.35       0       0     18.01
-----------------------------------------------------------------------------------------------------------------------
FLOOR4       1034       TUBING, SHRINK, .125"    A       1064 IN         12    16.05     1.3       0       0     17.35
-----------------------------------------------------------------------------------------------------------------------
11A4         5858-001   SWITCH, LENS BLUE        A         18 EA          1     15.3    1.24       0       0     16.54
-----------------------------------------------------------------------------------------------------------------------
15C2         1038       TUBING, SHRINK, .375"    A        587 IN         12    15.29    1.24       0       0     16.52
-----------------------------------------------------------------------------------------------------------------------
17A2         8798-001   CASTER, FRAME, VE        C          1 EA          1    15.14    1.23       0       0     16.37
-----------------------------------------------------------------------------------------------------------------------
PH4          6760-002   O-RING,TEFLON -007       C         53 EA          1       15    1.21       0       0     16.21
-----------------------------------------------------------------------------------------------------------------------
500          8971-001   RETAINER, BRG, RSRVR MTR C          1 EA          1    14.75    1.19       0       0     15.94
-----------------------------------------------------------------------------------------------------------------------
11A3         5554       RING, EXT,RETAIN, 1/2"   A        142 EA          1    13.92    1.13       0       0     15.04
-----------------------------------------------------------------------------------------------------------------------
LOC2I3       8224-001   WASHER, TAB              A         10 EA          1     13.7    1.11       0       0     14.81
-----------------------------------------------------------------------------------------------------------------------
PH5          8673-001   WASHER,  CONICAL  SPRING C        196 EA          1    13.33    1.08       0       0     14.41
                        M3
----------------------------------------------------------------------------------------------------------------------
LOC2F5       8617-001   CASTER,2"DIA.X1"WIDE 90# C          5 EA          1     12.8    1.04       0       0     13.84
-----------------------------------------------------------------------------------------------------------------------
5C1          2669       SEAL, OIL, V-RING        A          4 EA          1    11.76    0.95       0       0     12.71
-----------------------------------------------------------------------------------------------------------------------
10A2         8253-001   SCREW, PPH 10-24 X 1.5"  A         72 EA          1     10.8    0.87       0       0     11.67
-----------------------------------------------------------------------------------------------------------------------
9A3          2495       RING, "0", RESERVOIR     C        117 EA          1    10.76    0.87       0       0     11.64
-----------------------------------------------------------------------------------------------------------------------
8A2          8647-001   TAPE,  TEFLON  1/4"  MIL C       2225 IN        520    10.27    0.83       0       0      11.1
                        GRD
-----------------------------------------------------------------------------------------------------------------------
4A3          8974-001   CABLE,PURGE      FIXTURE C         10 EA          1       10    0.81       0       0     10.81
                        POWER
-----------------------------------------------------------------------------------------------------------------------
1000         4395       INSULATOR, HEAT SINK     C         26 EA          1     8.06    0.65       0       0      8.71
-----------------------------------------------------------------------------------------------------------------------
5C4          522        CONN,   MINIFIT,   MALE, A         72 EA          1      7.2    0.58       0       0      7.78
                        HSG,
-----------------------------------------------------------------------------------------------------------------------
10A1         6539-001   BRG, NON-METALLIC .5 ID  A          2 EA          1     7.12    0.58       0       0       7.7
-----------------------------------------------------------------------------------------------------------------------
10B4         8980-001   WASHER,          CONICAL C         70 EA          1     6.86    0.56       0       0      7.42
                        SPRING,M4
-----------------------------------------------------------------------------------------------------------------------
10B6         7275-001   BRG,NYLINER,.25ID,.3125ODC         45 EA          1     6.75    0.55       0       0       7.3
-----------------------------------------------------------------------------------------------------------------------
8B5          2230       RLR,  IDLER PIVOT,  .325 C          1 EA          1     6.18     0.5       0       0      6.68
                        ID
-----------------------------------------------------------------------------------------------------------------------
9B4          7879-001   FUSE/6.3A/250V/TR5/UL-CSAC         20 EA          1        6    0.49       0       0      6.49
-----------------------------------------------------------------------------------------------------------------------
150          254        TUBING, URETHANE, GREEN, C        599 IN         12     5.99    0.49       0       0      6.48
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       34
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
9B7          7277-001   FUSE/2A/250V/TR5/TIME-LAGC         16 EA          1     5.28    0.43       0       0      5.71
-----------------------------------------------------------------------------------------------------------------------
CABINET      6736-001   LABEL,WEB        PRINTER A         97 EA          1     4.85    0.47       0       0      5.32
                        UNCRATE
-----------------------------------------------------------------------------------------------------------------------
CABINET      6735-001   LABEL, FORK HERE         A         88 EA          1      4.4    0.43       0       0      4.83
-----------------------------------------------------------------------------------------------------------------------
CABINET      6738-001   LABEL, PUSH/DO NOT PUSH  A         88 EA          1      4.4    0.43       0       0      4.83
-----------------------------------------------------------------------------------------------------------------------
10B2         8255-001   SCREW, SHSET,M3X6MM      A         40 EA          1     4.36    0.35       0       0      4.72
-----------------------------------------------------------------------------------------------------------------------
CABINET      6737-001   LABEL, NO FORK THIS SIDE A         82 EA          1      4.1     0.4       0       0       4.5
-----------------------------------------------------------------------------------------------------------------------
LOC2I3       6759-001   O-RING, VITON DASH 011   C         38 EA          1     3.61    0.29       0       0       3.9
-----------------------------------------------------------------------------------------------------------------------
PH5          7133-001   WASHER, FLANGED, BRASS   A          2 EA          1      3.5    0.28       0       0      3.78
-----------------------------------------------------------------------------------------------------------------------
PH2          3237-002   WIRE/22AWG/7X30/WHT/TEFLNC        214 IN         12     3.44    0.28       0       0      3.72
-----------------------------------------------------------------------------------------------------------------------
10B3         7990-001   PIN, SPRING 1/8DIA X 1/2 A         83 EA          1     3.24    0.26       0       0       3.5
-----------------------------------------------------------------------------------------------------------------------
10A3         3411       PIN, ROLL,1/4" X 1-1/2"  A         21 EA          1     3.12    0.25       0       0      3.38
-----------------------------------------------------------------------------------------------------------------------
PH2          5263       NUTLOCK, M4 HEX          A        122 EA          1     2.44     0.2       0       0      2.64
-----------------------------------------------------------------------------------------------------------------------
LOC2E1       1041       TUBING, SHRINK, .750"    A         51 IN         12     2.38    0.19       0       0      2.57
-----------------------------------------------------------------------------------------------------------------------
9B6          7881-001   FUSE/6.3A/250V/5X20/IEC  C          9 EA          1     1.62    0.13       0       0      1.75
-----------------------------------------------------------------------------------------------------------------------
4A4          540        TERMINAL,         FEMALE A         43 EA          1     1.55    0.13       0       0      1.67
                        24-18AWG
-----------------------------------------------------------------------------------------------------------------------
6C3          8029-001   PIN, ROLL,5/64X.375LG    A         32 EA          1     0.64    0.05       0       0      0.69
-----------------------------------------------------------------------------------------------------------------------
3B4          8516-001   ASSY,      GND      STRP A          1 EA          1     0.59    0.05       0       0      0.64
                        1/4X1/4X6"
-----------------------------------------------------------------------------------------------------------------------
10B2         7350-001   BAG,  ZIP-PRESS,   2MIL, A         20 EA        100     0.34    0.03       0       0      0.37
                        2X3
-----------------------------------------------------------------------------------------------------------------------
PH3          8960-001   ASSY, HIB JUMPER         C          1 EA          1     0.24    0.02       0       0      0.26
-----------------------------------------------------------------------------------------------------------------------
MRB          7235-001   FAN, 5.7 WATT, 130CFM    C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       8876-001   CRATE,SHIPPING,PWR/CNTRL C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          2611       ENCODER,  HIGH  RES  500 C          0 EA          1        0       0       0       0         0
                        RPM
-----------------------------------------------------------------------------------------------------------------------
MRB          7326-004   BEZEL, PRINTHEAD 256     C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     9064-001   FUSE/1.0A/250V/SB/TR5    C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       8878-001   CRATE,SHIPPING,PNTR,FORK C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
11C2         7913-001   ASSY, LOOP SENSOR OPTO   C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          8885-002   ASSY,   HEAD   PWR   BRD C          0 EA          1        0       0       0       0         0
                        CONFIG
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     2230       RLR,  IDLER PIVOT,  .325 C          0 EA          1        0       0       0       0         0
                        ID
-----------------------------------------------------------------------------------------------------------------------
10B4         9072-001   KIT,  LABELS IR  SENSORS C          0 EA          1        0       0       0       0         0
                        VE
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     8829-001   ASSY, VT MOTOR           C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
SUBINFLR     7660-001   RLR, EXTRUDED,URETHANE   A          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       35
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
15B1         254        TUBING, URETHANE, GREEN, C          0 IN         12        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          7620-001   BOARD,         PROCESSOR C          0 EA          1        0       0       0       0         0
                        DENSITRO
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     7620-001   BOARD,         PROCESSOR C          0 EA          1        0       0       0       0         0
                        DENSITRO
-----------------------------------------------------------------------------------------------------------------------
9000         7620-001   BOARD,         PROCESSOR C          0 EA          1        0       0       0       0         0
                        DENSITRO
-----------------------------------------------------------------------------------------------------------------------
FLOOR3       8829-001   ASSY, VT MOTOR           C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
9C2          7724-002   ASSY,HEAD      INTERFACE C          0 EA          1        0       0       0       0         0
                        BOARD
-----------------------------------------------------------------------------------------------------------------------
MRB          7615-001   HARD     DRIVE     2.1GB A          0 EA          1        0       0       0       0         0
                        DENSITRO
-----------------------------------------------------------------------------------------------------------------------
SUBFLOOR     1036       TUBING, SHRINK, .250"    A          0 IN         12        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       8829-001   ASSY, VT MOTOR           C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
400000       7338-001   TUBING,  SILICONE  1/16" C          0 IN         12        0       0       0       0         0
                        ID
-----------------------------------------------------------------------------------------------------------------------
16A3         1036       TUBING, SHRINK, .250"    A          0 IN         12        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          7726-002   ASSY,HEAD      AMPLIFIER C          0 EA          1        0       0       0       0         0
                        BOARD
-----------------------------------------------------------------------------------------------------------------------
SUBIN1       3001       SPACER,     .5    IDX.62 C          0 EA          1        0       0       0       0         0
                        OD.25LG
-----------------------------------------------------------------------------------------------------------------------
8A4          8864-001   TOOL, AMP BOARD REMOVAL  C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
ESA          1334       WIRE, HOOKUP 16AWG BLK   A          0 IN         12        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
PH6          7338-001   TUBING,  SILICONE  1/16" C          0 IN         12        0       0       0       0         0
                        ID
-----------------------------------------------------------------------------------------------------------------------
MRB          7802-002   ASSY, ISA  CARD          C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     9075-001   FRU, IR SENSOR           C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          7724-002   ASSY,HEAD      INTERFACE C          0 EA          1        0       0       0       0         0
                        BOARD
-----------------------------------------------------------------------------------------------------------------------
PH1          6504-003   ASSY, PLATE PRINTHEAD    C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
8A1          8743-001   BRUSH,INPUT MOD,NIP      C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
10A4         4393       WASHER,  SHLDR,  INSLTNG C          0 EA          1        0       0       0       0         0
                        #4
-----------------------------------------------------------------------------------------------------------------------
15C4         8333-001   ASSY,256       PRINTHEAD C          0 EA          1        0       0       0       0         0
                        300DPI
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     4792       RLY/SS/3-32VDC/25AAC/SPNDC          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
15A4         8333-001   ASSY,256       PRINTHEAD C          0 EA          1        0       0       0       0         0
                        300DPI
-----------------------------------------------------------------------------------------------------------------------
9B5          4909       CABLE,SNSR,TEMP,         C          0 EA          1        0       0       0       0         0
                        INFRARED
-----------------------------------------------------------------------------------------------------------------------
150000       8946-001   ASSY,240DPI   PRTHD-TEST C          0 EA          1        0       0       0       0         0
                        VE
-----------------------------------------------------------------------------------------------------------------------
PH5          8326-002   BLOCK,         UMBILICAL C          0 EA          1        0       0       0       0         0
                        JUNCTION
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       36
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
FG-SPARE     8946-001   ASSY,240DPI   PRTHD-TEST C          0 EA          1        0       0       0       0         0
                        VE
-----------------------------------------------------------------------------------------------------------------------
800          9061-001   SIMM, 64MB MACH PROC     C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          8692-002   ASSY, HEAD DRIVER BOARD  C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       8333-001   ASSY,256       PRINTHEAD C          0 EA          1        0       0       0       0         0
                        300DPI
-----------------------------------------------------------------------------------------------------------------------
MRB          8019-001   ASSY, PLATEN,FRONT       C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          6463-002   ASSY, IF CARD,VE         C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     8947-001   ASSY,300DPI   PRTHD-TEST C          0 EA          1        0       0       0       0         0
                        VE
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     6387-001   SCREW, BASE LEVELING     C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
1000         8146-001   FITTING, T 1/8" TUBING   C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
16A2         6847-007   ASSY, INK PURGE DRAIN    C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          2101-007   ASSY, UMBILICAL HTR      C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          8211-001   ASSY, RESERVOIR MODULE   C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          8976-001   BLOCK, PURGE FIXTURE MTG C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          3215-009   ASSY,CNTRL PANEL 586     C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          8301-001   ASSY, IGUS TRACK W/BRKTS C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          6805-005   ASSY, REGULATOR BOARD,VE C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
1000         3034       BRG, BALL                C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FLOOR1       7112-002   ASSY, 256 PRINTHEAD      A          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
15A2         7078-001   ASSY, DANCER ROLLER      C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
6A5          8919-001   MACH PROCESSOR, CONFIG   C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          7949-001   ASSY, SNSR ROLLER SPEED  C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     6934-002   SNSR, REFLECTIVE ARRAYED C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     6899-001   FILTER, 25 UM INLINE     C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
10A1         6899-001   FILTER, 25 UM INLINE     C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     8971-001   RETAINER, BRG, RSRVR MTR C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
CUST-RTN     6760-002   O-RING,TEFLON -007       C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
MRB          8150-001   ASSY, 6IN UMBILICAL HTR  C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     8743-001   BRUSH,INPUT MOD,NIP      C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     9061-001   SIMM, 64MB MACH PROC     C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
SUBA5        6804-003   ASSY,    VACUUM-PRESSURE C          0 EA          1        0       0       0       0         0
                        REG
-----------------------------------------------------------------------------------------------------------------------
FG-SPARE     6804-003   ASSY,    VACUUM-PRESSURE C          0 EA          1        0       0       0       0         0
                        REG
-----------------------------------------------------------------------------------------------------------------------
MRB          8336-001   ASSY,256       PRINTHEAD C          0 EA          1        0       0       0       0         0
                        240DPI
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       37
<PAGE>

<TABLE>
<CAPTION>
                              Components and Parts
-----------------------------------------------------------------------------------------------------------------------
Stock ID     Part ID    Description              AC       On  UOM     Cost/    Matl    Matl     Labor   Labor    Total
                                                         Hand         Comv     Val      O/H      Val     O/H     Value
----------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                      <C>       <C><C>         <C><C>      <C>       <C>     <C>    <C>
FG-SPARE     6803-003   ASSY, REGULATOR MENISCUS C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
150          6803-003   ASSY, REGULATOR MENISCUS C          0 EA          1        0       0       0       0         0
-----------------------------------------------------------------------------------------------------------------------
16A1         8336-001   ASSY,256       PRINTHEAD C          0 EA          1        0       0       0       0         0
                        240DPI
-----------------------------------------------------------------------------------------------------------------------
7000000      4081       PULLEY,   3/8P   48G,3/4 C          0 EA          1        0       0       0       0         0
                        BORE
-----------------------------------------------------------------------------------------------------------------------
15B4         8336-001   ASSY,256       PRINTHEAD C          0 EA          1        0       0       0       0         0
                        240DPI
-----------------------------------------------------------------------------------------------------------------------
7000000      4082       PULLEY,     3/8P,15G,5/8 C          0 EA          1        0       0       0       0         0
                        BORE
-----------------------------------------------------------------------------------------------------------------------
SUBT4        7373-001   BELT,         STRETCHED, C          0 EA          1        0       0       0       0         0
                        TRANSPRT
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       38
<PAGE>

                                    Exhibit B

                    Open Purchase Orders as of Agreement Date
<TABLE>
<CAPTION>
                                                         QTY    QTY   QTY     QTY              UNIT              TOTAL
   PO #      DL    PART NO.   ISSUE DATE   DEL. DATE     ORD    REC   INV.    DUE             PRICE              $ DUE
-----------------------------------------------------------------------------------------------------------------------
<S>          <C>  <C>         <C>          <C>            <C>    <C>    <C>     <C>         <C>               <C>
MM9392A      04   00001P5486  2000-06-06   2000-09-18     8      6      8       2            $274.22           $548.44

MH9394A      03   00001P5488  2000-06-06   2000-08-21     4      2      4       2             455.05            910.10

MH9398A      03   00001P5491  2000-06-02   2001-08-21     8      6      8       2             421.17            842.34

MRC829A      01   00024H7051  2001-01-12   2000-05-28     4      0      0       4           1,048.41          4,193.64

HRN578A      01   00024H6779  2001-02-06   2001-05-21     1      0      0       1             352.18            352.18

MRN579A      01   00024H6874  2001-02-06   2001-05-21     1      0      0       1             628.64            628.64

MRV111A      01   00024H6631  2001-02-08   2001-05-24     2      0      0       2             169.67            339.34

MRV112A      01   00024H6650  2001-02-08   2001-05-24     3      0      0       3           1,035.04          3,105.12

MRV113A      01   00024H6692  2001-02-08   2001-06-11     2      0      0       2               3.86              7.72

MRV114A      01   00024H6925  2001-02-08   2001-05-24     69     0      0       69              2.85            196.65

MRV115A      01   00024H7051  2001-02-08   2001-05-24     8      0      0       8           1,048.41          8,387.28

MRX132A      01   00024H6631  2001-02-20   2001-06-04     2      0      0       2             169.67            339.34

MRX135A      01   00024H6893  2001-02-20   2001-06-04     6      0      0       6             329.85          1,979.10

MRX142A      01   00024L3469  2001-02-20   2001-05-14     12     0      0       12             94.79          1,137.48

MVF026A      01   00024H7052  2001-04-03   2001-07-16     1      0      0       1             809.77            809.77

MVF042A      01   00024L3468  2001-04-03   2001-07-16     3      0      0       3           1,760.93          5,282.79

MVK822A      01   00001P5705  2001-04-12   2001-09-03     7      0      0       7              19.90            139.30

MVL114A      01   00024H6631  2001-04-12   2001-07-30     1      0      0       1             169.67            169.67

MVL116A      01   00024H7068  2001-04-12   2001-07-30     1      0      0       1              91.95             91.95

MVL126A      01   00024L3468  2001-04-18   2001-07-30     2      0      0       2           1,760.93          3,521.86

MVN096A      01   00024H6692  2001-04-19   2001-08-06     2      0      0       2               3.86              7.72

MVN097A      01   00024H7052  2001-04-19   2001-08-06     5      0      0       5             809.77          4,048.85

MVN108A      01   00024L3449  2001-04-19   2001-08-06     2      0      0       2             106.45            212.90

MVN109A      01   00024L3452  2001-04-19   2001-08-06     2      0      0       2              68.76            137.52

MVN110A      01   00024L3468  2001-04-19   2001-08-06     3      0      0       3           1,760.93          5,282.79

MVN219A      01   00038L1642  2001-04-19   2001-08-06     5      0      0       5              51.41            257.05

MVR192A      01   00001P5442  2001-04-26   2001-07-16     30     0      0       30              1.14             34.20

MVR934A      01   00024H6660  2001-04-26   2001-08-13     3      0      0       3              81.98            245.94

MVR935A      01   00024H6735  2001-04-26   2001-08-13     1      0      0       1           1,721.26          1,721.26

MVR956A      01   00024L3449  2001-04-26   2001-08-13     2      0      0       2             106.45            212.90
</TABLE>



                                       39
<PAGE>

<TABLE>
<CAPTION>
                                                         QTY    QTY   QTY     QTY              UNIT              TOTAL
   PO #      DL    PART NO.   ISSUE DATE   DEL. DATE     ORD    REC   INV.    DUE             PRICE              $ DUE
-----------------------------------------------------------------------------------------------------------------------
<S>          <C>  <C>         <C>          <C>            <C>    <C>    <C>     <C>         <C>               <C>
MV0059A      01   00024H6674  2001-02-22   2001-06-08     15     0      0       15            112.27          1,684.05

MV2729A      01   00024H6650  2001-03-01   2001-06-18     1      0      0       1           1,035.04          1,035.04

MV2739A      01   00024L3468  2001-03-01   2001-06-18     1      0      0       1           1,760.93          1,760.93

MV5014A      01   00024H6746  2001-03-08   2001-06-25     10     0      0       10             27.33            273.30

MV5021A      01   00024L3468  2001-03-08   2001-07-02     1      0      0       1           1,760.93          1,760.93

MV6630A      01   00002N7625  2001-03-15   2001-07-03     4      0      0       4              14.56             58.24

MV6876A      01   00011L6505  2001-03-15   2001-07-03     1      0      0       1           4,485.13          4,485.13

MV7124A      01   00024H6735  2001-03-15   2001-07-03     1      0      0       1           1,721.26          1,721.26

MV7125A      01   00024H6925  2001-03-15   2001-07-03     237    0      0       237             2.85            675.45

MV7126A      01   00024H7052  2001-03-15   2001-07-10     1      0      0       1             809.77            809.77

MV7145A      01   00024L3468  2001-03-15   2001-07-03     1      0      0       1           1,760.93          1,760.93

MV9025A      01   00002N8133  2001-03-22   2001-07-09     1      0      0       1             384.16            384.16
-------                                                   ------------------------------------------------------------

     42                                                   474    14     20      460                         $61,553.03

</TABLE>


                                       40
<PAGE>

                                   Exhibit C


                       List of Other Intellectual Property

The  items  listed  in  Section  II  -  Access  to  Technical   Information  and
Intellectual  Property in the Amendment to the April 1996 Agreement  dated April
23, 1996.


                                       41