Advanced Delivery and Chemical Systems Nevada, Inc. - Page 10

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          patent lawsuit at $1 million and the cost of defending a patent             
          lawsuit at $2 million.2                                                     
               Over the years from its founding in 1988 until the October             
          1997 acquisition by ATMI, management of ADCS, of petitioner, of             
          Holdings LLC and Operating LLC, and of ADCS-Limited generally               
          maintained a policy of funding their activities and growth with             
          internally generated funds, and they did not seek or obtain                 
          outside long-term financing to fund research and development of             
          new products, corporate moves, new plant and office construction,           
          or working capital.  With the exception of the $72,000 bank loan            
          obtained in 1990, all of the growth and expansion of ADCS, of               
          petitioner, and of the affiliated companies was financed with               
          funds raised within the affiliated companies.                               
               During the calendar years of 1996 and 1997, Siegele was paid           
          by ADCS-Limited a salary of approximately $2 million.  Other                
          senior management personnel of ADCS-Limited and of the affiliated           
          companies also were paid, apparently by ADCS-Limited, annual                
          salaries of approximately $300,000 each.                                    
               For each of the 1996 and 1997 calendar years, a consolidated           
          income statement of ADCS, of petitioner, of the affiliated                  
          limited liability companies, and of ADCS-Limited reflected sales            

               2  In 1999, ATMI paid approximately $2.7 million in                    
          connection with patent litigation relating to the business                  
          activities of petitioner and of its affiliated companies.                   

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