Estate of Harriet R. Mellinger, Deceased, Hugh V. Hunter and Wells Fargo Bank, Co-Executors - Page 10




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          Year  Net Sales  Net Sales     Net    Earnings    Total                     
          End     Retail     Catalog  Earnings  Per Share   Assets    Equity          
          1990 $98,573,000*           $4,242,000  $.50    $35,031,000 $21,855,000     
          1991  70,938,000 $43,196,0005,197,000   .58     39,935,00026,992,000        
          1992  71,320,000 45,710,000 5,073,000   .57     45,790,00032,304,000        
          1993  73,202,000 55,314,000 4,737,000   .53     50,838,00036,615,000        
          *Total Net Sales for 1990                                                   
               At the valuation date, FOH had one class of stock                      
          outstanding that traded on the NYSE, and those shares were                  
          unregistered with the SEC.  Additionally, on the valuation date,            
          the average price of FOH stock on the NYSE was $6.9375 per share.           
          Economic Conditions at the Valuation Date                                   
               At the valuation date, the American economy was experiencing           
          a transition from recession to a recovery.  The United States               
          gross domestic product (GDP) grew 2.1 percent in 1992 following             
          the 1991 recession.  Economic improvements had generally been               
          fueled by low interest rates, increasing corporate profits and              
          strong productivity growth.  Despite these positive factors,                
          structural problems, including excessive debt, corporate                    
          restructuring and related uncertainties regarding job growth,               
          overvalued real estate, weak banks, defense spending reductions,            
          and consumer confidence continued to hamper the strength and                
          speed of the recovery.                                                      
               A survey of economists by the Wall Street Journal in early             
          1993 revealed a consensus estimate of 3-percent GDP growth rate             
          for 1993, with 2.8-percent growth rate expected in the first                





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