Estate of Ross H. Freeman, Deceased, Dennis Hersey, Executor - Page 13

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               Approach                           Indicated Value                     
               Capitalization of 1989 earnings    $1.87                               
               Capitalization of revenues         1.75                                
               Price/book value                   1.48                                
          Without explaining the weight to be given to each approach, other           
          than stating that the most weight should be given to 1989                   
          earnings, less weight should be given to price/book value, and              
          the least value should be given to revenues, Klemm opined that              
          the publicly traded equivalent value of the shares on a per-share           
          basis, as of October 22, 1989, was $1.70                                    
               Klemm then applied two discounts to the $1.70 per-share                
          value.  He first applied a 20-percent discount to reflect the               
          minority position that an owner of the shares would have.  He               
          then applied a 25-percent discount to reflect the lack of an                
          established market for the shares.                                          
               Taking into account the two discounts that he had applied,             
          Klemm concluded that the fair market value of the shares, on a              
          minority interest basis, was $729,000, or $1.02 per share.                  
               In his interview with Bernard V. Vonderschmitt, president of           
          the corporation, Klemm did not inquire as to whether, on                    
          October 22, 1989, the corporation had any plans for a public                
          offering of stock.  He did not consider the potential for a                 
          public offering in valuing the shares.                                      
          Value of the Shares                                                         
               The fair market value of the shares, on a per-share basis,             
          was $4.20 on October 22, 1989.                                              




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