Bernice M. and Stanley M. Ulanoff - Page 12




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          established market.  Grossman suggested that a reasonable                   
          comparison of the products available in the polyethylene industry           
          in 1981 and the polystyrene industry in 1982 with the Sentinel              
          EPE and EPS recyclers, respectively, reveals that the Sentinel              
          recyclers had very little commercial value and were similar to              
          comparable products available on the market in component form.              
          For these reasons, Grossman opined that the Sentinel EPE and EPS            
          recyclers did not justify the "one-of-a-kind" pricetag that they            
          carried.                                                                    
               Specifically, Grossman reported that there were several                
          machines on the market as early as 1981 that were functionally              
          equivalent to, and significantly less expensive than, both the              
          Sentinel EPE and EPS recyclers.  These machines included: (1) The           
          Japan Repro recycler, available in 1981 for $53,000; (2) the                
          Buss-Condux Plastcompactor, available before 1981 for $75,000;              
          (3) Foremost Machine Builders' "Densilator", available from 1978-           
          1981 for $20,000; and (4) the Midland Ross Extruder, available in           
          1980 and 1981 for $120,000.  Grossman observed that all of these            
          machines were "widely available".                                           
               Grossman's opinion regarding the Sentinel EPS recycler was             
          based on personal examination of such recycler, as well as the              
          descriptions thereof that were set forth in the writings of other           
          professionals.  Although Grossman did not observe the Sentinel              
          EPS recycler in actual operation, he examined both the Sentinel             
          EPS recycler and the Japan Repro recycler and found that the                



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