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All historical information remains the same (through Year X-1).

Use this new set of assumptions:

Revenue growth:

30% Year XE

30% Year X+1E

1% improvement in Gross Margin for Year X E (from year X-1). No further change in the Gross Margin for Year X+1.

1% improvement in Selling in Year XE. Same level in Year X+1E.

G&A remains constant on a common size basis.

$10,000 increase in R&D in X E.

Same R&D level in Year X+1 E.

Basic Shares outstanding 3,000,000.

A new section of the existing plant is constructed for $300,000. This new construction is depreciated over 30 years using the straight line method. All other depreciation remains the same for the years X E and X+1 E.

The plant is financed with a $300,000 10 year bond with a fixed interest payment of 10% annually.

The Company, for the first time, grants 500,000 options to various members of management with an exercise price of $1.00. These options are granted on the first day of Year X E.

There are no other options, warrants or convertible securities.

The average stock price for Year X E and Year X+1 E is projected to be $5.00.

All other interest payments, interest income and tax rates remain the same.

Vae thic ast af anvemptions far Year XF and X+1R : Your Name Here Vae thic ast af anvemptions far Year XF and X+1R : Your Name Here

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