Herbert V. Kohler, Jr., et al. - Page 6

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          four divisions and generated 70 to 75 percent of the company’s              
          revenues and profits annually in the years leading up to and                
          including 1998.  Kitchen and Bath is a full line plumbing                   
          products business that manufactures sinks, lavatories, toilets,             
          bathtubs, faucets, cabinetry, tile and other products.  The                 
          second largest division is Power Systems, which generated 15 to             
          20 percent of Kohler’s revenues and profits annually in the years           
          leading up to and including 1998.  Power Systems manufactures and           
          sells small gas engines that power lawn, garden, and turf                   
          equipment, as well as small industrial equipment, generators, and           
          automatic transfer switches and switchgear.                                 
               The Interiors division, the third largest, manufactures and            
          sells home furnishings and was responsible for 6 percent of                 
          Kohler’s revenues and profits annually in the years leading up to           
          and including 1998.  The smallest division is Hospitality, which            
          owns and operates a resort, a spa, and several golf courses.  The           
          Hospitality division generated about 4 percent of Kohler’s                  
          revenues and profits annually in the years leading up to and                
          including 1998.                                                             
               All four divisions focus on maintaining the standard of                
          quality and remaining on the leading edge of processing and                 
          product design.  Kohler’s stated mission is to improve the level            
          of gracious living and to develop products and services that fit            







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