Morehouse Industries, FULLERTON

Nature of Business: Manufactures industrial equipment and engineered products

Total Employees: 67

In Orange County: 67

Stock Listing in The Times: On Western OTC as “MorhseInd”

Ticker Symbol: “MIXS”

Friday’s Close: $1.25

One-week Change: Up $0.13

Analyst Review: “The interesting thing about Morehouse Industries is that they have been able to come back from the dust. Jim Swartwout took over as chairman two years ago and revitalized this 50-year-old company. He has given them guidance and an acquisition strategy, and the shareholders are being rewarded for it. Morehouse acquired GST Industries last year--they make remote-controlled fire-fighting equipment. GST was making a good profit, and the acquisition had advantages for both the buyer and the seller. It is rare that a company that has been on the ropes in the past is able to to make an acquisition instead of being acquired themselves. Morehouse is a nice, solid money-making company that is going to grow with good acquisitions.”

--Mark Matheson, director of research, Cruttenden & Co., Irvine

Sales and Profits

Dollar amounts in millions.

Fiscal year ending Aug. 31 Aug. 31 Aug. 31 2 Qtrs. 2 Qtrs. 1989 1990 1991 1991 1992 Net Sales $3.9 $3.3 $3.6 $1.9 $3.2 Net Profit (Loss) ($.416) ($1.2) $.193 $.079 $.224

Corporate Outlook: “Morehouse Industries is committed to building value and liquidity for its shareholders. We will build value by profitably increasing sales volume via internal growth--developing new products and services--and by acquisitions of fundamentally good companies without exorbitant leverage. Liquidity will be achieved by building the number of shares and shareholders and getting the company on the standard NASDAQ list.”

--James R. Swartwout, chairman/CEO

RETURN ON STOCKHOLDER INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Aug. 31 Aug. 31 Aug. 31 2 Qtrs. 1989 1990 1991 1991 52-Week High $1.13 $1.25 $1.13 $0.63 52-Week Low $0.63 $0.38 $0.19 $0.19 Book Value Per Share $0.87 $0.56 $0.62 $0.62 Price Per Share $0.75 $0.38 $0.88 $0.19 Net Earnings (Loss) Per Share ($0.11) ($0.30) $0.05 $0.02 Price-to-Earnings Ratio N/A N/A 18:1 5:1 Avg. Return on Investor Equity N/A N/A 8% 7% 17%

Fiscal year ending 2 Qtrs. 1992 52-Week High $1.63 52-Week Low $0.88 Book Value Per Share $0.67 Price Per Share $1.13 Net Earnings (Loss) Per Share $0.06 Price-to-Earnings Ratio 9:1 Avg. Return on Investor Equity N/A

Information, write Morehouse Industries Inc.: 1600 W. Commonwealth Ave., Fullerton, Calif. 92633. (714) 738-5000

Source: Morehouse Industries Inc.