Patton Performs Well Agains Industry Peers

We know that you, as Patton Distributors, depend on us for prompt and consistent delivery and support. After all, your customers are counting on you!That's why we expect that you will be interested in a study-done by the respected credit rating firm Dunn & Bradstreet-that shows Patton to be a veryhealthy company. The study, which compared 1994 financial statistics among 163 manufacturers of telecommunications equipment, highlights Patton'srobust performance in three areas. Items 1 and 2 (below) show Patton's capacity to service our customers. Items 3 and 7 show that we can and do payour bills promptly-which keeps the pipeline of raw materials flowing smoothly. Finally, items 4 thru 6 show that we borrow less money than the industryaverage, and that we keep more of our assets "liquid". The less our assets are tied up, the more responsive we can be to ever-changing industry demands.Taken together, these encouraging statistics bolster Patton's claim that we intend to produce high quality, US-made datacom equipment for generations ofsatisfied customers!

D&B Measurement Criteria               Patton Electronics Co.  Industry Average1) Annual Sales Volume                         106%                    100%2) Inventory as a % of Sales                    18%                     17%3) Current Liabilities as a % of Sales           9%                     22%4) Net Worth as a % of Total Capitalization     59%                     55%5) Quick Ratio(Cash + Accts Receivable to Accts Payable)     2.10                    1.406) Current Ratio(Current Assets to Current Liabilities)        4.30                    2.607) Paydex Score (Prompt Bill Payment)            74                     71