0000883984
2009-03-31
0000883984
2008-12-31
0000883984
2009-01-01
2009-03-31
0000883984
2008-01-01
2008-03-31
0000883984
2007-12-31
0000883984
2008-03-31
0000883984
2009-04-10
0000883984
2008-06-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
ICU MEDICAL INC
0000883984
10-Q
2009-03-31
false
--12-31
Yes
Yes
Accelerated Filer
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD>
<BODY>
<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
1: Basis of Presentation:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>The accompanying unaudited interim condensed
consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America and
pursuant to the rules and regulations of the Securities and Exchange
Commission (“SEC”) and reflect all adjustments, consisting of only normal
recurring adjustments, which are, in the opinion of management, necessary for a
fair statement of the consolidated results for the interim periods presented.
Results for the interim period are not necessarily indicative of results for the
full year. Certain information and footnote disclosures normally included in
annual consolidated financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to such
rules and regulations. The condensed consolidated financial statements
should be read in conjunction with the consolidated financial statements and
notes thereto included in the Company’s </FONT><FONT style="FONT-SIZE: 10pt"
size=2>Annual Report on Form 10-K filed with the SEC for the year ended
December 31, 2008</FONT><FONT style="FONT-SIZE: 10pt" size=2>.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>ICU Medical, Inc. (the “Company”), a Delaware
corporation, operates principally in one business segment engaged in the
development, manufacturing and marketing of disposable medical devices. The
Company’s devices are sold principally to distributors and medical product
manufacturers throughout the United States and internationally. All subsidiaries
are wholly or majority owned and included in the consolidated financial
statements. All intercompany balances and transactions have been
eliminated.</FONT></P></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD>
<BODY>
<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
4:</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>
</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>Fair Value
Measurement</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt"
size=2>:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The Company’s investment
securities, which are considered “available for sale” and trading consist
principally of corporate preferred stocks and federal-tax-exempt state and
municipal government debt. The Company has $61.7 million of its
investment securities as Level 2 assets, which are pre-refunded municipal
securities and have observable inputs. The Company has $11.7 million invested in
“auction rate securities” and $0.4 million in put option assets related to the
auction rate securities as Level 3 assets due to the unobservable inputs caused
by the lack of liquidity in the recent auctions. The valuation of these
securities was based on quotes received from our brokers which were derived from
their internal models combined with internally developed discount factors.
In determining a discount factor for each auction rate security, the model
weights various factors, including assessments of credit quality, duration,
insurance wraps, discount rates, overall capital market liquidity and comparable
securities, if any. They are carried at fair value.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The following table
provides the assets and liabilities carried at fair value measured on a
recurring basis as of March 31, 2009:</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P>
<DIV align=center>
<TABLE style="WIDTH: 90.02%; BORDER-COLLAPSE: collapse" cellSpacing=0
cellPadding=0 width="90%" border=0>
<TBODY>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in"
vAlign=bottom width="28%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 67.76%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="67%" colSpan=11>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>Fair value measurements at March 31,
2009 using</FONT></B></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in"
vAlign=bottom width="28%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>Total carrying<BR>value at<BR>March 31,
2009</FONT></B></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.76%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>Quoted prices<BR>in active<BR>markets for<BR>identical<BR>assets (level 1)</FONT></B></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.76%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>Significant<BR>other<BR>observable<BR>inputs (level 2)</FONT></B></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.76%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.68%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>Significant<BR>unobservable<BR>inputs (level 3)</FONT></B></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in"
vAlign=bottom width="28%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Available for sale
securities</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>61,738</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.44%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 14.16%; PADDING-TOP: 0in"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>—</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.44%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 14.16%; PADDING-TOP: 0in"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>61,738</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.44%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 14.24%; PADDING-TOP: 0in"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>—</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in"
vAlign=bottom width="28%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Trading
securities</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>—</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>—</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.68%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="15%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in"
vAlign=bottom width="28%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>73,838</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>—</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>61,738</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.24%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR></TBODY></TABLE></DIV>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>The following tables summarize the change in the
fair values for Level 3 items for the quarter ended March 31,
2009:</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.75in"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman"
size=2>Level 3 changes in fair value (pre-tax):</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<TABLE style="MARGIN-LEFT: 0.75in; WIDTH: 85.74%; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="85%" border=0>
<TBODY>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.46%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>Quarter ended<BR>March 31, 2009</FONT></B></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Beginning
balance</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>15,925</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.5%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.92%; PADDING-TOP: 0in"
vAlign=bottom width="16%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Transfer into Level
3</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.46%; PADDING-TOP: 0in"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>—</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Sales</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 16.46%; PADDING-TOP: 0in"
vAlign=bottom width="16%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>(3,825</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>)</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Unrealized holding
loss, included in other comprehensive income</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.46%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>—</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Ending
balance</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.5%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.92%; PADDING-TOP: 0in"
vAlign=bottom width="16%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR></TBODY></TABLE>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>The Company has agreements in place with Morgan
Stanley & Co. (“Morgan”) and UBS AG (“UBS”) that permit the Company to
require Morgan and UBS to purchase the Company’s auction rate securities at par
value plus accrued interest. As of March 31, 2009, the Company has
$11.7 million in auction rate securities. There was less than $0.1 million
in declines in the market values of the Company’s auction rate securities in the
quarter ended March 31, 2009.</FONT></P></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD>
<BODY>
<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
5: Inventories:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>Inventories consisted of the following:</FONT></P>
<P style="MARGIN: 0in 0in 0pt 45pt; TEXT-INDENT: -45pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P>
<TABLE style="MARGIN-LEFT: 0.75in; WIDTH: 85.74%; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="85%" border=0>
<TBODY>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>Marc h 31, 2009</FONT></B></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>December 31, 2008</FONT></B></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Raw
material</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>14,696</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="16%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,531</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Work in
process</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,449</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,577</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Finished
goods</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="16%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>4,551</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="18%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,822</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Total</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="14%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>21,696</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="16%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>17,930</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman"
size=2></FONT> </P></TD></TR></TBODY></TABLE></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD>
<BODY>
<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
6: Property and Equipment:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>Property and equipment consisted of the
following:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<TABLE style="MARGIN-LEFT: 0.75in; WIDTH: 85.74%; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="85%" border=0>
<TBODY>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>March 31, 2009</FONT></B></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman"
size=1></FONT></B> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman"
size=1>December 31, 2008</FONT></B></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Machinery and
equipment</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>51,147</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="16%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>50,337</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Land, building and
building improvements</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>48,547</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>48,715</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Molds</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in"
vAlign=bottom width="16%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>18,300</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>16,791</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Computer equipment
and software</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>9,973</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>9,890</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Furniture and
fixtures</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in"
vAlign=bottom width="16%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>1,972</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>1,983</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Construction in
progress</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,917</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>3,479</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="16%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="18%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Total property and
equipment, cost</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman"
size=2>132,856</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman"
size=2>131,195</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Accumulated
depreciation</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="16%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman"
size=2>(64,069</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0.375pt; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>)</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid"
vAlign=bottom width="18%" bgColor=#cceeff colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman"
size=2>(61,298</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0.375pt; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>)</FONT></P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%">
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="16%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none"
vAlign=bottom width="18%" colSpan=2>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0%>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P></TD></TR>
<TR>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in"
vAlign=bottom width="59%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Net property and
equipment</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="14%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>68,787</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in"
vAlign=bottom width="2%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman" size=2></FONT> </P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="1%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>$</FONT></P></TD>
<TD
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double"
vAlign=bottom width="16%" bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2>69,897</FONT></P></TD>
<TD
style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in"
vAlign=bottom width=0% bgColor=#cceeff>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt"
face="Times New Roman"
size=2></FONT> </P></TD></TR></TBODY></TABLE></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD>
<BODY>
<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
8:</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>
</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>Income
Taxes:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>Income taxes were acc</FONT><FONT
style="FONT-SIZE: 10pt" size=2>rued at an estimated annual effective tax rate of
36% in the first quarter of 2009 compared to 34% in the first quarter of 2008.
The effective tax rate differs from that computed at the federal statutory rate
of 35% principally because of the effect of foreign and state income taxes, tax
credits, tax exempt income and deductions for domestic production
activities.</FONT></P></BODY></HTML>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
9: Major Customer:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>The Company had revenues equal to 10% or more of
total revenues from one customer, Hospira, Inc. Such revenues were 71% and
66% of total revenue for the quarters ended March 31, 2009 and 2008,
respectively. As of March 31, 2009 and December 31, 2008, the
Company had accounts receivable from Hospira of 62% and 66%, of consolidated
accounts receivable, respectively.</FONT></P></BODY></HTML>
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<BODY>
<DIV style="FONT-FAMILY: Times New Roman">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align=left><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
10: Commitments and Contingencies:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align=left><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"
align=left><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>In an
action filed July 6, 2006 entitled <U>Medegen MMS, Inc. v. ICU
Medical, Inc.</U> filed in the United States District Court for the Central
District of California, Medegen alleged that ICU Medical infringed one of its
patents by offering for sale and selling the CLC2000 and TEGO. Medegen sought
monetary damages and injunctive relief. In March 2007, Medegen withdrew its
action as to the TEGO. On June 21, 2007, the Court issued an order
interpreting certain terms and phrases of Medegen’s patent in a manner that we
believe supported our position. On September 14, 2007, the Court issued an
order granting our summary judgment motion of non-infringement and On
October 19, 2007, entered judgment of non-infringement, dismissing
Medegen’s case with prejudice. On October 19, 2007, the Court also
dismissed, without prejudice, our counterclaims that the asserted patent is
invalid and unenforceable due to inequitable conduct by Medegen before the
United States Patent and Trademark Office. Medegen has appealed the Court’s
claim construction and summary judgment orders. By decision issued in
November 2008, the Federal Circuit reversed the order granting summary
judgment and remanded the case to the District Court. The Company intends to
defend itself against Medegen’s claims in this action. The outcome of this
action is uncertain, therefore no accrual has been recorded.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT
style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT> </P></DIV>
<DIV>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"
align=left><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The
Company is from time to time involved in various other legal proceedings, most
of which are routine litigation, in the normal course of business. In the
opinion of management, the resolution of the other legal proceedings in which
the Company is involved will not likely have a material adverse impact on the
Company’s financial position or results of operations.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"
align=left><FONT style="FONT-SIZE: 10pt" face="Times New Roman"
size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>In the normal course of business, the Company has
agreed to indemnify officers and directors of the Company to the maximum extent
permitted under Delaware law and to indemnify customers as to certain
intellectual property matters related to sales of the Company’s products.
There is no maximum limit on the indemnification that may be required under
these agreements. Although we can provide no assurances, the Company has
never incurred, nor do we expect to incur, any liability for
indemnification. Except for indemnification agreements, the Company does
not have any “off balance sheet arrangements”.</FONT></P></DIV></BODY></HTML>
7873000
37595000
14777612
0
0
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<BODY>
<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
2:</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>
</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>New
Accounting Pronouncements:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>In April 2009, the Financial Accounting
Standards Board (“FASB”) issued FSP SFAS 141(R)-1, “Accounting for Assets
Acquired and Liabilities Assumed in a Business Combination That Arise from
Contingencies”, to amend the provisions related to the initial recognition and
measurement, subsequent measurement and disclosure of assets and liabilities
arising from contingencies in a business combination under SFAS 141(R). Under
the new guidance, assets acquired and liabilities assumed in a business
combination that arise from contingencies should be recognized at fair value on
the acquisition date if fair value can be determined during the measurement
period. If fair value cannot be determined, companies should typically account
for the acquired contingencies using existing guidance. The Company
adopted FAS 141(R) and FSP SFAS 141(R)-1 on January 1, 2009. The adoption
did not have a material effect on the Company’s financial position or results of
operations.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>In April 2009, the FASB issued FSP SFAS
157-4, “Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly” which provides additional guidance for estimating fair
value in accordance with FASB Statement No. 157, “Fair Value Measurements”,
when the volume and level of activity for the asset or liability have
significantly decreased. This FSP also includes guidance on identifying
circumstances that indicate a transaction is not orderly</FONT><FONT
style="FONT-SIZE: 10pt" size=2>. </FONT><FONT style="FONT-SIZE: 10pt"
size=2>This pronouncement is effective for periods ending after June 15,
2009. The Company’s management does not expect this pronouncement to have
a material effect on the Company’s financial position and results of
operations.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>In April 2009, the FASB issued FSP SFAS 115-2
and SFAS 124-2, “Recognition and Presentation of Other-Than-Temporary
Impairments”, to amend the other-than-temporary impairment guidance in debt
securities </FONT><FONT style="FONT-SIZE: 10pt" size=2>to be based on intent to
sell instead of ability to hold the security</FONT><FONT style="FONT-SIZE: 10pt"
size=2> and to improve the presentation and disclosure of other-than-temporary
impairments on debt and equity securities in the financial statements.
This pronouncement is effective for periods ending after June 15,
2009. The Company’s management does not expect this pronouncement to have
a material effect on the Company’s financial position and results of
operations.</FONT></P></BODY></HTML>
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<BODY>
<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
7: Net Income Per Share:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>Net income per share is computed by dividing net
income by the weighted average number of common shares outstanding. Diluted net
income per share is computed by dividing net income by the weighted average
number of common shares outstanding plus dilutive securities. Dilutive
securities are outstanding common stock options (excluding stock options with an
exercise price in excess of the average market value for the period), less the
number of shares that could have been purchased with the proceeds from the
exercise of the options, using the treasury stock method, and were 133,463 and
624,129 for the quarters ended March 31, 2009 and 2008, respectively.
Options that are anti-dilutive because their exercise price exceeded the average
market price of the common stock for the period approximated 1,135,000 and
1,397,000 for the quarters ended March 31, 2009 and 2008,
respectively.</FONT></P></BODY></HTML>
No
279719052
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<P style="MARGIN: 0in 0in 0pt"><B><FONT
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note
3: Restricted Cash / Intangible Assets</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2></FONT> </P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>In February 2009, the Company acquired a
small manufacturing and distribution company based in Germany for approximately
$5.7 million, which was reflected as restricted cash of $6.0 million at
December 31, 2008. The Company recorded $6.1 million in intangible
assets, which includes $3.8 million for customer contracts, $0.4 million for
trademarks and $1.9 million of goodwill. Of the total amount of goodwill,
$1.4 million is expected to be deductible for tax purposes. The
Company also recorded a deferred tax liability of $1.4 million as a result of
this transaction.</FONT></P></BODY></HTML>