Operating and Stockholder Information of ROBERTSON TOOL COMPANY

operatons 1998 1999sales 48.5 49.1COGS 32.6 33.1SGA 10.7 11.1depreciation 2 2.3interest expenses 0.4 0.7income before tax 2.8 1.9taxes 1.1 0.8net income 1.7 1.1

percentage of salesCOGS 0.67 0.67SGA 0.22 0.23operating income 0.066 0.053

Stockholder Information $ $EPS 2.91 1.88DPS 1.6 1.6book value per share 49.4 49.68market price 33-34 35-48P/E 11-16- 10-26-shares outstanding 584000 584000

BALANCE SHEET OF ROBERTSON Tool company, 2002Million Dollar

ASSETscash 1A/R 8inventories 18other 1current assets 28

net plant & equipement 19total assets 47

collection period 53dys days of inventory 173 days sales/total assets 1.176596dabt as percentage os capital 0.27907total assets/net worth 1.516129

PRO-FORMA FOR ROBERSON TOOL BY Messrs, Vincent & RuddActual FORECASTS

2002 2003 2004CoGS % of sales 0.69 0.68 0.67S&GA % sales 0.22 0.21 0.2

growth of sales 0.059675

sales 55.3 58.6 62.09693COGS 38.157 39.848 41.60494S&GA 12.166 12.306 12.41939depreciation 2.1 2.3 2.5EBIT 2.877 4.146 5.5726tax@40% 1.1508 1.6584 2.22904EBIAT 1.7262 2.4876 3.34356Interest 0.8Adjustment of Interest (0.8 million) 1.2462 2.0076 2.86356Net Plant & Equipment in beginning of the year 19 20.7Capital Expenses 4 3.5Depreciation 2.3 2.5net plat at the end of the year 20.7 21.7

Five Year Forecast of Monmouth Inc exluding Roberson Tool2003 2004

net income (million dollar) 11 11.9shares outstanding (million) 4.21 4.21EPS 2.612827 2.826603

NWC of Robertson 2002 2003 2004non cash CA 27CL 4NWC 23 12.91637 13.68715NWC to sales 0.220416 projected to reduce to comparable companies (BBB) Inve/sales to 13% + its own other CA to sales as the Inventory for Robertson is higherchange of NWC -10.08363 0.770778other Non cash WC 5 (9-4)sales for 2002 55.3other Non cash WC/sales 0.090416comparable comp. Inve/sales 0.13total 0.220416WACCdebt 0.28equity 0.72 0.066667cost of debt 0.066667 BBB after tax Kcost of debt at present of Robertson (.8/12) 0.066667 same to BBB firmrisk premium 0.06tax 0.4risk free 0.041 30yr TBbeta 1 as of BBBcost of equity 0.101WACC 0.08392

Terminal Growth rate 0.02

FREE CASH FLOW OF Robertson Tool 2002 2003 2004sales 55.3 58.6 62.09693COGS 38.157 39.848 41.60494S&GA 12.166 12.306 12.41939depreciation 2.1 2.3 2.5EBIT 2.877 4.146 5.5726tax@40% 1.1508 1.6584 2.22904EBIAT 1.7262 2.4876 3.34356add Depreciation 2.1 2.3 2.5cash flow from operation 3.8262 4.7876 5.84356Less increase NWC -10.08363 0.770778less capex 4 3.5free cash flow (FCF) 10.87123 1.572782

10.87123 1.572782Terminal valuePV at WACC Rate 10.02955 1.338672PV of terminal valueTotal PV 61.46104Debt outstanding 12Value of equity 49.46104Outstanding shares 0.584Per share of Robertson 84.69356 At 2% Terminal Growth Rate, Price per share= $84.69

Maximum No. of Share Calculation 2003 2004

1 projected net income of Monmouth given 11 11.92 projected net income after tax of Roberson 2.0076 2.86356

3 projected Monmouth net income cmbined (1+2) 13.0076 14.763564 projected Monmouth EPS without Robertson given 2.61 2.83

5 4.983755 5.2168066 Monmouth shares current have (No) given 4.21 4.21

7 0.773755 1.006806

8 No.of Robertson shares outstanding 0.584 0.584

9 1.324923 1.723982

10 24 31.79814 41.37558

Max no. of shares of Monmouth shares after merger without diluting Monmouth EPS (3/4)

Max no. of shares of Monmouth can be issued to Robertson without diluting its EPS (5-6)

No of Monmouth shares that could be offered for one share of Robertson without diluting Monmouth's EPS (Exchange ratio)

If Monmouth Share as $24, the Exchange ratio translates into price per share of Robertson stock.

11

May be exchange ratio will be between 2.15 to 2.35 t make price more than $50 as suggested by Simmons

Million Dollar2000 2001 200253.7 54.8 55.335.9 37.2 37.911.5 11.9 12.3

2.4 2.3 2.10.8 0.8 0.83.1 2.6 2.21.2 1 0.91.9 1.6 1.3

0.67 0.68 0.690.21 0.22 0.22

0.073 0.062 0.054

$ $ $3.25 2.74 2.23

1.6 1.6 1.651.33 52.47 53.1

29-41 25-33 23-329-13- 9-12- 10-14-

584000 584000 584000

Liabilities A/P 2other 2current liabilities 4long term debt 12 0.066667

net worth 31

total 47

2005 2006 2007 to Infinity0.66 0.65 0.650.19 0.19 0.19

Million Dollar2007

65.80253 69.72926 73.8903243.42967 45.32402 48.0287112.50248 13.24856 14.03916

2.7 2.9 2.97.170379 8.256682 8.9224512.868152 3.302673 3.5689814.302228 4.954009 5.353471

3.822228 4.474009 4.87347121.7 22.6 23.5

3.6 3.8 2.92.7 2.9 2.9

22.6 23.5 23.5

2005 2006 200712.8 13.8 154.21 4.21 4.21

3.04038 3.27791 3.562945

2005 2006 2007

14.50392 15.36944 16.2866projected to reduce to comparable companies (BBB) Inve/sales to 13% + its own other CA to sales as the Inventory for Robertson is higher

0.816774 0.865514 0.917164

6

0.04same to BBB firm

Million 2005 2006 2007 2008

65.80253 69.72926 69.7292643.42967 45.32402 45.3240212.50248 13.24856 13.24856

2.7 2.9 2.97.170379 8.256682 8.2566822.868152 3.302673 3.3026734.302228 4.954009 4.954009

2.7 2.9 2.97.002228 7.854009 7.8540090.816774 0.865514 0.917164

3.6 3.8 2.92.585454 3.188495 4.0368462.585454 3.188495 4.036846 4.117582

64.417752.030229 2.309919 2.698087

43.05458

At 2% Terminal Growth Rate, Price per share= $84.69

2005 2006 200712.8 13.8 15

3.822228 4.474009 4.873471

16.62223 18.27401 19.873473.04 3.27 3.56

5.467838 5.588382 5.5824364.21 4.21 4.21

1.257838 1.378382 1.372436

0.584 0.584 0.584

2.153832 2.360243 2.350061

51.69197 56.64584 56.40146

projected to reduce to comparable companies (BBB) Inve/sales to 13% + its own other CA to sales as the Inventory for Robertson is higher