Financial Forecast Assumptions
Tom's Machinery Co. Inc.
Multi-year Scenario #1
(Dollars and Shares in Thousands, Except Per Share Amounts)

Estimate   Forecast   12 Months 06/30/09   12 Months 06/30/10 12 Months 06/30/11 12 Months 06/30/12 12 Months 06/30/13 12 Months 06/30/14   Year-to-Year Change in Net Sales NA     15.0%   15.0%   15.0%   15.0%   15.0%     Gross Margin % 32.4%     33.0%   33.0%   33.5%   33.7%   34.0%     Operating Expenses as % of Net Sales 28.8%     27.0%   26.0%   26.0%   26.0%   25.5%     Other Income (Expense) $(6)     $1   $2   $4   $6   $8     Interest Rate on Borrowings NA     8.0%   8.0%   8.0%   8.0%   8.0%     Interest Rate on Subordinated Debt NA     12.0%   12.0%   12.0%   12.0%   12.0%     Income Tax Rate 41.7%     0.0%   0.0%   0.0%   0.0%   0.0%     Cash $25     $25   $25   $25   $25   $25     Number of Days Sales in Accounts Receivable 47.5     47.8   47.8   47.8   47.8   47.8     Number of Days Cost of Goods Sold in Inventory 97.2     97.8   97.8   97.8   97.8   97.8     Other Current Assets $6     $7   $8   $9   $10   $12     Intangibles $7     $8   $9   $10   $12   $14     Investments $0     $0   $0   $0   $0   $0     Other Assets $13     $15   $17   $20   $23   $27     Current Maturities $11     $13   $15   $17   $20   $23     Number of Days Cost of Goods Sold in Accounts Payable 42.1     41.8   41.8   41.8   41.8   41.8     Number of Days Operating Expenses in Accrued Expenses 101.4     101.3   101.3   101.3   101.3   101.3     Taxes Payable $1     $1   $1   $1   $1   $1     Other Current Obligations $0     $0   $0   $0   $0   $0     Other Current Liabilities $0     $0   $0   $0   $0   $0     Term Loan $38     $44   $51   $59   $68   $78     Subordinated Debt $0     $0   $0   $0   $0   $0     Other Long Term Obligations $20     $21   $24   $28   $32   $37     Other Liabilities $0     $0   $0   $0   $0   $0     Common Stock $0     $0   $0   $0   $0   $0     Preferred Stock $0     $0   $0   $0   $0   $0     Other Equity $0     $0   $0   $0   $0   $0     Treasury Stock $0     $0   $0   $0   $0   $0     Capital Expenditures (Net) NA     $18   $20   $23   $27   $31     Dividends as % of Net Earnings 0.0%     40.0%   40.0%   40.0%   40.0%   40.0%     Depreciation (Net) NA     $9   $10   $12   $14   $16     Estimated Borrowing Base as a % of Accounts Receivable 80.0%     80.0%   80.0%   80.0%   80.0%   80.0%     Estimated Borrowing Base as a % of Inventory 35.0%     35.0%   35.0%   35.0%   35.0%   35.0%     Estimated Borrowing Base as a % of       Property, Plant and Equipment (Net) 50.0%     50.0%   50.0%   50.0%   50.0%   50.0%     Common Shares Outstanding (Fully Diluted) 100     100   100   100   100   100