July 11, 2001 - EX-(C)(2) PRESENTATION TO SUNSOURCE BOARD - SC 13E3: Schedule filed to report going private transactions | Hillman Solutions Corp. (HLMN)

EXHIBIT C.2

JANNEY MONTGOMERY SCOTT

I N V E S T M E N T B A N K I N G

Established 1832

Presentation to the
Board of Directors of

[SUNSOURCE LOGO]

April 19, 2001

Table of Contents
- --------------------------------------------------------------------------------

SECTION

1 INTRODUCTION

2 KAR PRODUCTS

3 SUNSOURCE TECHNOLOGY SERVICES

4 THE HILLMAN GROUP

5 VALUATION SUMMARY

EXHIBITS

1 HISTORICAL STOCK PRICE PERFORMANCE

2 STOCK PREMIUM ANALYSIS

3 OVERVIEW OF ALLIED CAPITAL CORPORATION

AND SELECTED ALLC RESEARCH REPORTS

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- --------------------------------------------------------------------------------

INTRODUCTION

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Introduction - Background
- --------------------------------------------------------------------------------

- SunSource, Inc. ("SunSource" or the "Company") has for some time
been evaluating various alternatives to enhance shareholder value.

- Recently, SunSource was approached by Allied Capital Corporation
("Allied") regarding a possible business combination.

- On April 6, 2001, Allied proposed a stock for stock merger offering
$10.25 in Allied common stock for each share of SunSource common
stock (the "Transaction"). Outstanding options and warrants would
vest at closing in accordance with their terms, and the Company's
indebtedness and trust preferred securities would remain
outstanding.

- The purpose of the following presentation is to provide the Board
with various valuation data relevant to its consideration of the
proposed Transaction.

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Introduction - Two Types of Value
- --------------------------------------------------------------------------------

- Equity Value: The value of an ownership interest, e.g. in a
corporation, the value of its common stock.

- Enterprise Value: The value of the entire entity, i.e. equity value plus
net debt.

[ENTERPRISE VALUE PIE CHART]

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Transaction Value
- --------------------------------------------------------------------------------

CALCULATION OF TRANSACTION'S EQUITY VALUE:

CALCULATION OF TRANSACTION'S ENTERPRISE VALUE:

(1) Treasury method used to calculate resulting diluted shares outstanding from
options and warrants.

(2) Includes in-the-money options only; please refer to the following page for
calculation.

(3) Strike proceeds on Allied warrants assume a price of $0.01 per share.

(4) Subordinated debt includes $29.9 million owed to Allied, $2.8 million owed
to Axxess, and $12.2 million owed to Warburg.

The $2.8 million due to Axxess was repaid on April 6, 2001.

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Introduction - Options Outstanding
- --------------------------------------------------------------------------------

(1) As of April 16, 2001

(2) Equals options outstanding times the exercise price.

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Introduction - Valuation Methodologies
- --------------------------------------------------------------------------------

- In analyzing whether or not the consideration to be received is fair to
shareholders from a financial point of view, reference is often made to
three widely accepted valuation methodologies:

- COMPARABLE COMPANY ANALYSIS - looks at the financial and stock market
performance of comparable publicly traded companies

- COMPARABLE TRANSACTION ANALYSIS - looks at the multiples and premiums
at which comparable mergers and acquisitions have taken place

- DISCOUNTED CASH FLOW ANALYSIS - looks at a company's ability to
generate future free cash flow

These three methodologies are applied, as appropriate, to a Company's
historical and projected financial results.

- In addition, a review of a Company's HISTORICAL STOCK PRICE PERFORMANCE
AND THE STOCK PRICE PREMIUM offered in a proposed transaction are relevant
as background information in evaluating a proposal.

- The results of these analyses provide the principal support for a fairness
opinion. However, other factors and analyses are considered, including ones
not purely "mathematical" in nature.

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Approach to Valuation
- --------------------------------------------------------------------------------

- In evaluating the best approach to analyze SunSource, two items stand out:

- First, the Company operates not just one business, but rather
is comprised of three distinct entities:

- Kar Products
- SunSource Technology Services
- The Hillman Group

Of the three, Hillman generates the bulk of SunSource's value.

- Second, the Company's reported financial results were impacted by the
numerous acquisitions and divestitures completed during 2000:

- Sale of Kar (March) - Purchase of Brafasco (October)
- Purchase of Axxess (April) - Purchase of Sharon-Philstone (November)
- Sale of Harding Glass (April) - Liquidation of Mexico Int. Supp. (Ongoing)

- As a result, we believe the most appropriate approach to valuing the
Company is to analyze SunSource (i) from a "sum of the parts" perspective,
rather than on a consolidated basis, and (ii) on a proforma basis, i.e. as
if the acquisitions and divestitures were effective as of January 1, 2000.

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- --------------------------------------------------------------------------------

KAR PRODUCTS

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Kar Products - Overview
- --------------------------------------------------------------------------------

- Kar Products, Inc. ("Kar") provides personalized, small parts
inventory management services to low volume customers. Kar packages
and inventories over 40,000 items, the largest category of which is
fasteners. Parts are purchased from over 700 regular vendors.

- In March, 2000, the Company raised capital by contributing its Kar
operations to a newly formed partnership, G-C Sun Holdings LP
("G-C"), affiliated with Glencoe Capital LLC ("Glencoe"). The
Company received $105 million in cash proceeds from the transaction
through repayment of assumed debt, and retained a 49% minority
interest in G-C. Glencoe, a private equity firm, obtained a 51%
controlling interest.

- After the Brafasco acquisition in October 2000, the Company
retained a 44% minority interest in Kar and accounts for its
investment under the equity method.

- Pro forma financial results at Kar have been solid, but flat over
the past several years.

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Kar Products - Key Income Statement Items
- --------------------------------------------------------------------------------

For the Year Ended December 31,
------------------------------------------------------------------------
Actual Proforma (1) Plan
---------------------------------------- ----------- --------
1997 1998 1999 2000 2001
-------- -------- -------- -------- --------
(in thousands, except per share data)

Net Revenues $139,794 $139,746 $142,479 $149,048 $155,987
Growth (Decline) in Revenues N/A 0.0% 2.0% 4.6% 4.7%

Cost of Sales 42,623 42,744 45,641 48,647 50,915
-------- -------- -------- -------- --------

Gross Profit 97,171 97,002 96,838 100,401 105,072
Gross Margin 69.5% 69.4% 68.0% 67.4% 67.4%

Operating Expenses 71,350 71,100 71,967 75,174 78,729
-------- -------- -------- -------- --------

Operating Cash Flow (EBITDA) $ 25,821 $ 25,902 $ 24,871 $ 25,227 $ 26,343
======== ======== ======== ======== ========
EBITDA Margin 18.5% 18.5% 17.5% 16.9% 16.9%

Depreciation & Amortization 6,515 6,515
-------- --------

Operating Income (EBIT) 18,712 19,828
-------- --------
Interest (Income)/Expense 11,032 11,249
-------- --------

Profit (Loss) Before Taxes 7,680 8,579
-------- --------
Proforma Income Taxes (2) 3,072 3,432
-------- --------

Proforma Net Income $ 4,608 $ 5,147
======== ========

- Results thus far in 2001 have been disappointing. Kar's Plan projected
Sales and EBITDA of $38,964 and $6,513, respectively, for the first quarter;
actual results were $36,370 and $5,264, respectively. As a result of first
quarter performance, Kar is not likely to achieve its original Plan.

- -----------------------------
(1) Assumes the acquisition of Brafasco had been consummated on January 1, 2000.

(2) Assumes a tax rate of 40%

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Kar Products - Comparable Companies Summary
- --------------------------------------------------------------------------------

LTM (1) LTM (1) LTM (1) LTM (1) 2001(P) (2)
REVENUE EBITDA EBIT NET INCOME EPS
------- ------ ---- ---------- ---

Barnes Group Inc (B) $ 766,275 $ 97,946 $ 60,946 $ 33,579 N/A
Hughes Supply Inc (HUG) 3,310,163 137,801 105,489 39,915 1.88
Industrial Distr Group Inc (IDG) 546,681 12,254 7,141 (462) N/A
Lawson Products (LAWS) 348,967 48,487 41,824 28,136 N/A

ENTERPRISE VALUE / EQUITY VALUE /
---------------------------------------- --------------------------------
LTM LTM LTM LTM 2001(P)
REVENUE EBITDA EBIT NET INCOME NET INCOME
-------- ------ ---- ---------- ----------

Barnes Group Inc (B) 0.7 x 5.6 x 9.0 x 10.2 x N/A
Hughes Supply Inc (HUG) 0.3 x 6.3 x 8.2 x 8.7 x 7.8 x
Industrial Distr Group Inc (IDG) 0.1 x 6.1 x 10.4 x NM N/A
Lawson Products (LAWS) 0.6 x 4.7 x 5.4 x 9.5 x N/A

ENTERPRISE VALUE / EQUITY VALUE /
-------------------------------------- -------------------------------
LTM LTM LTM LTM 2001(P)
REVENUE EBITDA EBIT NET INCOME NET INCOME
------- ------ ---- ---------- ----------

High 0.7 x 6.3 x 10.4 x 10.2 x 7.8 x
Low 0.1 4.7 5.4 8.7 7.8
Median 0.5 5.8 8.6 9.5 7.8
Adjusted Average (3) 0.5 5.8 8.6 9.5 7.8

- ----------------------
(1) LTM figures for the period ending December 31, 2000.

(2) Represent First Call consensus estimates; Estimates have been calendarized.

(3) Adjusted to exclude the highest and lowest value before averaging.

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Kar Products - Comparable Companies Analysis
- --------------------------------------------------------------------------------

LTM EBITDA: $ 25,227 LTM EBIT: $ 18,712
-------------------------------------- --------------------------------------
5.0x 5.5x 6.0x 8.0x 8.5x 9.0x
-------- -------- -------- -------- -------- --------

Enterprise Value $126,135 $138,749 $151,362 $149,696 $159,052 $168,408
Less: Net Debt 99,197 99,197 99,197 99,197 99,197 99,197
-------- -------- -------- -------- -------- --------
Equity Value $ 26,938 $ 39,552 $ 52,165 $ 50,499 $ 59,855 $ 69,211
x 44% x 44% x 44% x 44% x 44% x 44%
-------- -------- -------- -------- -------- --------
$ 11,853 $ 17,403 $ 22,953 $ 22,220 $ 26,336 $ 30,453
======== ======== ======== ======== ======== ========

LTM NET INCOME: $ 4,608
----------------------------------------
9.0x 9.5x 10.0x
-------- -------- --------

Enterprise Value N/A N/A N/A
Less: Net Debt N/A N/A N/A
-------- -------- --------
Equity Value $ 41,472 $ 43,776 $ 46,080
x 44% x 44% x 44%
-------- -------- --------
$ 18,248 $ 19,261 $ 20,275
======== ======== ========

VALUATION SUMMARY
- -----------------------------------------

Low $ 11,853
High 30,453
Median 22,586
Average 21,869
Adjusted Average (1) 22,228

-------------------------------------------------------------
VALUATION RANGE TO SUNSOURCE: $20,000 - $25,000
-------------------------------------------------------------

- -----------------------
(1) Adjusted to exclude the highest and lowest value before averaging.

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- --------------------------------------------------------------------------------

SUNSOURCE TECHNOLOGY SERVICES

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SunSource Technology Services - Overview
- --------------------------------------------------------------------------------

- SunSource Technology Services, Inc. ("STS") provides its customers
with systems, parts and engineering services for hydraulic,
pneumatic, electronic and related systems.

- STS' operating performance has suffered recently due to a
restructuring of its sales force in early 1999 and soft market
conditions in 2000.

- As a result of STS' historical and projected losses, Comparable
Company Analysis and Comparable Transaction Analysis, which are
based upon multiples of income or cash flow, are not meaningful.

- Balance Sheet and Discounted Cash Flow Analysis suggests an equity
value to SunSource in the range of $25 million to $30 million.

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STS - Key Income Statement Items
- --------------------------------------------------------------------------------

For the Year Ended December 31,
------------------------------------------------------------------------------------------------
Actual Projected
------------------------ --------------------------------------------------------------------
1999 2000 2001 2002 2003 2004 2005
--------- --------- --------- --------- --------- --------- ---------
(in thousands, except per share data)

Net Revenues $ 250,392 $ 228,730 $ 218,000 $ 230,000 $ 245,000 $ 260,000 $ 275,000
Growth (Decline) in Revenues N/A -8.7% -4.7% 5.5% 6.5% 6.1% 5.8%

Cost of Sales 195,999 176,537 164,808 173,600 183,700 195,000 206,200
--------- --------- --------- --------- --------- --------- ---------

Gross Profit 54,393 52,193 53,192 56,400 61,300 65,000 68,800
Gross Margin 21.7% 22.8% 24.4% 24.5% 25.0% 25.0% 25.0%

Operating Expenses 57,329 58,043 55,154 56,400 58,800 60,000 61,800
--------- --------- --------- --------- --------- --------- ---------

Operating Cash Flow (EBITDA) (2,936) (5,850) (1,962) 0 2,500 5,000 7,000
--------- --------- --------- --------- --------- --------- ---------
Depreciation & Amortization 2,141 2,631 2,550 2,550 2,550 2,550 2,550
--------- --------- --------- --------- --------- --------- ---------

Operating Income (EBIT) $ (5,077) $ (8,481) $ (4,512) $ (2,550) $ (50) $ 2,450 $ 4,450
========= ========= ========= ========= ========= ========= =========

- First quarter 2001 Sales results did not hit Plan, but the EBITDA Plan was
achieved. STS' Plan projected Sales and EBITDA were $55,513 and $(411),
respectively, for the first quarter; actual results were $52,928 and $(422),
respectively. Updated forecasts project that breakeven EBITDA is not likely
to occur until 2002

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Balance Sheet Value - Net Tangible Book
- --------------------------------------------------------------------------------

As of
3/31/01
--------

Assets
Current Assets $ 56,232
Net Fixed Assets 4,439
Goodwill 15,880
Other Assets 1,246
--------
Total Assets $ 77,797
========

Liabilities
Current Liabilities $ 29,952
Long-term Liabilities 565
--------
Total Liabilties 30,517
Equity 47,280
--------
Total Liabilities & Equity $ 77,797
========

- STS's Equity Value is $47,280

- Adjusting STS' Equity Value by eliminating Goodwill results in an adjusted,
or net tangible, book value of $31,400.

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STS - Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------

PROJECTED
-------------------------------------------------------------
12/31/01 12/31/02 12/31/03 12/31/04 12/31/05
--------- --------- --------- --------- ---------

Sales $ 218,000 $ 230,000 $ 245,000 $ 260,000 $ 275,000
- in A/R (5,850) (79) (1,687) (1,874) (1,874)
--------- --------- --------- --------- ---------
Cash Sales 212,150 229,921 243,313 258,126 273,126

Cost of Goods Sold 164,808 173,600 183,700 195,000 206,200
- in Inventory 1,373 (282) 1,812 2,052 2,158
- in A/P 263 185 (1,188) (1,346) (1,415)
--------- --------- --------- --------- ---------
Cash Cost of Goods Sold 166,444 173,503 184,324 195,706 206,943

Cash Gross Profit 45,706 56,418 58,990 62,420 66,183

Operating Expenses 57,704 58,950 61,350 62,550 64,350
Depreciation & Amortization (2,550) (2,550) (2,550) (2,550) (2,550)
--------- --------- --------- --------- ---------
Cash Operating Expenses 55,154 56,400 58,800 60,000 61,800

Cash Operating Income (9,448) 18 190 2,420 4,383

Less: 40.0% Pro Forma Tax on Taxable Net Income (1,805) (1,020) (20) 980 1,780
Less: Capital Expenditures 700 700 700 700 700
--------- --------- --------- --------- ---------

Unlevered FCF to Capital Providers $ (8,344) $ 338 $ (490) $ 740 $ 1,903 $ 45,500 (2)
Interest Expense Tax Shield 77 70 70 70 70

- -------------------------------------------------------------------
NPV of Unlevered FCF (1) $ 17,759
Add: NPV of Tax Shields 252
Less: Present Value to Debt Holders -
--------
Enterprise Value Before Illiquidity Discount $ 18,010
Illiquidity and Non-Control Discount 0%
Total Enterprise Value $ 18,010
Ownership Percentage 100%
VALUE OF ENTERPRISE INTEREST $ 18,010
- -------------------------------------------------------------------

EBITDA MULTIPLE RANGE
-------------------------------------------------------
5.5x 6.0x 6.5x 7.0x 7.5x
------- ------- ------- ------- -------

15.0% $16,253 $18,066 $19,880 $21,694 $23,507
DISCOUNT 16.0% $15,439 $17,181 $18,922 $20,663 $22,404
FACTOR 17.0% $14,666 $16,338 $18,010 $19,683 $21,355
RANGE 18.0% $13,930 $15,537 $17,144 $18,750 $20,357
19.0% $13,230 $14,774 $16,319 $17,863 $19,407

(1) Unlevered Free Cash Flows discounted at 17.0%, with only 70.1% of Year 1
Unlevered FCF (and Tax Shields) being captured.

(2) Assumes a terminal value equal to last year EBITDA of $7.0 million
multiplied by an EBITDA multiple of 6.5x, the approximate current average
Enterprise Value/EBITDA multiple of Applied Ind. Tech., Genuine Parts,
Grainge, and Wesco Int'l.

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- --------------------------------------------------------------------------------

THE HILLMAN GROUP

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The Hillman Group - Overview
- --------------------------------------------------------------------------------

- The Hillman Group, Inc. ("Hillman") provides small hardware items
and merchandising services to retail outlets through a nationwide
sales and service organization. This operating unit includes the
business of Axxess Technologies, Inc. ("Axxess"), a manufacturer and
marketer of key duplication and identification systems acquired
by SunSource in April 2000.

- Hillman is SunSource's largest and strongest business unit. The
unit's operating cash flow (EBITDA) in 2000 was approximately $38
million and is projected to grow to roughly $47 million in 2001.

- Because (i) the allocation of SunSource's debt and trust preferred
securities among its various business units is based on tax
planning, and (ii) the accounting treatment of goodwill amortization
is likely to change effective later this year, an Enterprise Value
analysis is more meaningful than an Equity Value analysis.

- A key issue is the extent to which Hillman's operating results
should, for valuation purposes, be burdened with corporate expenses.

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The Hillman Group - Key Income Statement Items
- --------------------------------------------------------------------------------

For the Year Ended December 31,
-------------------------------
Actual Proforma (1)
------------------------
1999 2000
--------- ---------
(in thousands, except per share data)

Net Revenues $ 231,878 $ 239,178
Growth (Decline) in Revenues 194.0% 3.1%

Cost of Sales 106,057 104,512
--------- ---------

Gross Profit 125,821 134,667
Gross Margin 54.3% 56.3%

Operating Expenses - Hillman (2) (3) 92,934 93,895
--------- ---------

- ---------------------------------------------------------------------------------------------------------------
NO BURDEN
Operating Cash Flow (EBITDA) $ 32,887 $ 40,772
========= =========

Operating Income (EBIT) $ 28,176
=========
- ---------------------------------------------------------------------------------------------------------------

Original Operating Expenses- Corporate (4) 6,870 8,295
--------- ---------

Revised Operating Expenses- Corporate (5) 6,870 2,500
--------- ---------

- ---------------------------------------------------------------------------------------------------------------
WITH BURDEN (UTILIZING THE REVISED CORPORATE OPERATING EXPENSE PROJECTIONS)

Adjusted Operating Cash Flow (EBITDA) $ 26,017 $ 38,272
========= =========

Adjusted Operating Income (EBIT) $ 25,676
=========
- ---------------------------------------------------------------------------------------------------------------

For the Year Ended December 31,
-----------------------------------------------------
Projected
-----------------------------------------------------
2001 2002 2003 2004 2005
--------- --------- --------- --------- ---------
(in thousands, except per share data)

Net Revenues $ 260,038 $ 292,557 $ 321,820 $ 347,566 $ 371,895
Growth (Decline) in Revenues 8.7% 12.5% 10.0% 8.0% 7.0%

Cost of Sales 114,079 128,462 141,192 152,487 163,161
--------- --------- --------- --------- ---------

Gross Profit 145,959 164,095 180,628 195,078 208,734
Gross Margin 56.1% 56.1% 56.1% 56.1% 56.1%

Operating Expenses - Hillman (2) (3) 100,902 110,911 121,598 131,166 140,207
--------- --------- --------- --------- ---------

- ------------------------------------------------------------------------------------------------------------------------------------
NO BURDEN
Operating Cash Flow (EBITDA) $ 45,057 $ 53,184 $ 59,030 $ 63,912 $ 68,526
========= ========= ========= ========= =========

Operating Income (EBIT) $ 30,753 $ 39,927 $ 45,773 $ 50,655 $ 55,269
========= ========= ========= ========= =========
- ------------------------------------------------------------------------------------------------------------------------------------

Original Operating Expenses- Corporate (4) 5,000 4,500 3,800 3,800 3,800
--------- --------- --------- --------- ---------

Revised Operating Expenses- Corporate (5) 2,500 2,500 2,500 2,500 2,500
--------- --------- --------- --------- ---------

- ------------------------------------------------------------------------------------------------------------------------------------
WITH BURDEN (UTILIZING THE REVISED CORPORATE OPERATING EXPENSE PROJECTIONS)

Adjusted Operating Cash Flow (EBITDA) $ 42,557 $ 50,684 $ 56,530 $ 61,412 $ 66,026
========= ========= ========= ========= =========

Adjusted Operating Income (EBIT) $ 28,253 $ 37,427 $ 43,273 $ 48,155 $ 52,769
========= ========= ========= ========= =========
- ------------------------------------------------------------------------------------------------------------------------------------

- --------------------------------
(1) Assumes the acquisition of Axxess and Sharon-Philstone had been consummated
on January 1, 2000.

(2) Assumes $5 million in cost cutting initiatives undertaken throughout FY2000
were fully realized on January 1, 2000.

(3) Includes, for 2001-2005, a contingency reserve of $2 million per year,
consistent with management's March 2001 Board presentation.

(4) Original projections for Corporate Operating Expenses consistent with
management's March 2001 Board presentation.

(5) Revised projections for Corporate Operating Expenses based on further
discussion with management.

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The Hillman Group - Comparable Companies Summary
- --------------------------------------------------------------------------------

LTM (1) LTM (1) LTM (1) LTM (1) 2001(P) (2)
REVENUE EBITDA EBIT NET INCOME EPS
---------- ---------- ---------- ---------- ---------

SERVICE MERCHANDISERS
- ---------------------
Central Garden & Pet Co (CENT) $1,349,293 $ 73,172 $ 73,008 $ 6,720 N/A
Handleman Co (HDL) 1,157,149 89,119 73,008 41,968 1.62
Source Information Mgmt Co (SORC) 98,233 26,610 21,620 11,248 0.46
TBC Corporation (TBCC) 902,740 53,456 73,008 18,724 0.98

MROs / FLUID POWER DISTRIBUTORS
Applied Industrial Tech Inc (AIT) 1,618,387 82,711 60,147 32,198 1.43
Genuine Parts Co (GPC) 8,353,837 734,327 642,810 382,867 2.31
Grainger (W W) Inc (GWW) 4,977,044 442,013 335,120 192,903 1.99
Wesco Intl Inc (WCC) 3,881,096 161,590 73,008 39,080 1.15

ENTERPRISE VALUE / EQUITY VALUE /
------------------------------------------- --------------------------
LTM LTM LTM LTM 2001(P)
REVENUE EBITDA EBIT NET INCOME NET INCOME
------- ------ ---- ---------- ----------

SERVICE MERCHANDISERS
- ---------------------
Central Garden & Pet Co (CENT) 0.4 x 6.6 x 10.4 x 25.7 x N/A
Handleman Co (HDL) 0.3 x 4.0 x 5.2 x 7.7 x 7.2 x
Source Information Mgmt Co (SORC) 1.0 x 3.7 x 4.5 x 6.0 x 5.4 x
TBC Corporation (TBCC) 0.3 x 5.1 x 6.4 x 6.7 x 6.0 x

MROs / FLUID POWER DISTRIBUTORS
Applied Industrial Tech Inc (AIT) 0.3 x 5.3 x 7.3 x 10.8 x 11.3 x
Genuine Parts Co (GPC) 0.7 x 7.7 x 8.8 x 12.5 x 11.9 x
Grainger (W W) Inc (GWW) 0.7 x 7.7 x 10.2 x 16.3 x 16.8 x
Wesco Intl Inc (WCC) 0.2 x 5.4 x 6.5 x 11.2 x 8.0 x

- ------------------------
(1) LTM figures for the period ending December 31, 2000.

(2) Represent First Call consensus estimates; Estimates have been calendarized.

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The Hillman Group - Comparable Companies Analysis
- --------------------------------------------------------------------------------

ENTERPRISE VALUE / EQUITY VALUE /
------------------------------------------ ----------------------------
LTM LTM LTM LTM 2001(P)
REVENUE EBITDA EBIT NET INCOME NET INCOME
------- ------ ---- ---------- ----------

High 1.0 x 7.7 x 10.4 x 25.7 x 16.8 x
Low 0.2 3.7 4.5 6.0 5.4
Median 0.3 5.4 6.9 11.0 8.0
Adjusted Average (1) 0.4 5.7 7.4 10.9 8.9

HILLMAN - ENTERPRISE VALUE HILLMAN - EQUITY VALUE
--------------------------------------------- --------------------------
LTM (2) LTM (2) LTM (2) LTM (2) 2001(P)
REVENUE EBITDA (3) EBIT (3) NET INCOME NET INCOME
------- ---------- -------- ---------- ----------

HILLMAN $ 239,178 $ 38,272 $ 25,676 N/A N/A

High $ 239,127 $ 296,227 $ 267,299 N/A N/A
Low 53,893 141,251 116,638 N/A N/A
Median 79,625 205,833 177,615 N/A N/A
Adjusted Average (1) 103,811 217,770 190,171 N/A N/A

- ---------------------
(1) Adjusted to exclude the highest and lowest value before averaging.

(2) Proforma LTM results for the period ending 12/31/00.

(3) Utilizes "With Burden" Operating Cash Flow and Operating Income.

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The Hillman Group - Comparable Transactions Summary
- --------------------------------------------------------------------------------

DATE VALUE OF LTM LTM LTM
EFFECTIVE BUYER / SELLER TRANSACTION REVENUE EBITDA EBIT
- --------- -------------------------------------------------------- ----------- ------- ------ ----

04/07/00 SunSource Inc. / Axxess Technologies $ 110,000 $ 80,594 $ 17,120 5,583
12/07/99 Honeywell International, Inc. / TriStar Aerospace Co. 258,150 205,110 37,611 35,556
04/20/99 The Fairchild Corporation / Kaynar Technologies 222,000 185,512 35,623 28,851
03/25/99 TriStar Aerospace Co. / Standard Parts and Equipment Co. 35,200 27,483 4,483 4,376
09/04/98 Pentacon / ASI Aerospace Group 87,000 68,076 11,442 10,861
07/17/98 Pentacon / Texas International Aviation 17,580 17,698 3,089 3,011

ENTERPRISE VALUE /
------------------------------------------
DATE LTM LTM LTM
EFFECTIVE BUYER / SELLER REVENUE EBITDA EBIT
- --------- ------------------------------------------------------- ------- ------ ----

04/07/00 SunSource Inc. / Axxess Technologies 1.3 x 6.3 x 19.4 x
12/07/99 Honeywell International, Inc. / TriStar Aerospace Co. 1.2 x 6.6 x 7.0 x
04/20/99 The Fairchild Corporation / Kaynar Technologies 1.2 x 6.2 x 7.6 x
03/25/99 TriStar Aerospace Co. / Standard Parts and Equipment Co. 1.3 x 7.8 x 8.0 x
09/04/98 Pentacon / ASI Aerospace Group 1.3 x 7.6 x 8.0 x
07/17/98 Pentacon / Texas International Aviation 1.1 x 6.1 x 6.3 x

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The Hillman Group - Comparable Transactions Analysis
- --------------------------------------------------------------------------------

ENTERPRISE VALUE /
--------------------------------------------
LTM LTM LTM
REVENUE EBITDA EBIT
------- ------ ----

High 1.3 x 7.8 x 19.4 x
Low 1.1 x 6.1 x 6.3 x
Median 1.2 x 6.5 x 7.8 x
Adjusted Average (1) 1.2 x 6.7 x 7.7 x

HILLMAN - ENTERPRISE VALUE
-----------------------------------------
LTM LTM LTM
REVENUE EBITDA EBIT
------- ------ ----

HILLMAN $ 239,178 $ 38,272 $ 25,676

High $ 321,018 $ 299,642 $ 497,455
Low 256,334 235,000 161,745
Median 298,042 247,891 200,573
Adjusted Average (1) 296,331 255,666 196,831

- -----------------------
(1) Adjusted to exclude the highest and lowest value before averaging.

---------------------------
26 JANNEY MONTGOMERY SCOTT
===========================

The Hillman Group - Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------

PROJECTED
-------------------------------------------------------------
12/31/01 12/31/02 12/31/03 12/31/04 12/31/05
--------- --------- --------- --------- ---------

Sales $ 260,038 $ 292,557 $ 321,820 $ 347,566 $ 371,895
- in A/R (4,198) (4,658) (4,249) (3,395) (3,090)
--------- --------- --------- --------- ---------
Cash Sales 255,840 287,899 317,571 344,171 368,805

Cost of Goods Sold 114,079 128,462 141,192 152,487 163,161
- in Inventory (509) 5,643 5,196 5,135 4,695
- in A/P (407) (2,086) (2,006) (1,982) (1,812)
--------- --------- --------- --------- ---------
Cash Cost of Goods Sold 113,163 132,019 144,382 155,640 166,044

Cash Gross Profit 142,677 155,880 173,189 188,531 202,761

Operating Expenses 117,706 126,668 137,355 146,923 155,964
Depreciation & Amortization (14,304) (13,257) (13,257) (13,257) (13,257)
--------- --------- --------- --------- ---------
Cash Operating Expenses 103,402 113,411 124,098 133,666 142,707

Cash Operating Income 39,275 42,469 49,091 54,865 60,053

Less: 40.0% Pro Forma Tax on Taxable Net Income 11,301 14,971 17,309 19,262 21,108
Less: Capital Expenditures 12,645 9,000 9,000 9,000 9,000
--------- --------- --------- --------- ---------

Unlevered FCF to Capital Providers $ 15,329 $ 18,498 $ 22,782 $ 26,603 $ 29,945 $363,144 (2)
Interest Expense Tax Shield 8,472 7,996 7,592 7,592 7,592

- -----------------------------------------------------------------------------------------
NPV of Unlevered FCF (1) $ 241,389
Add: NPV of Tax Shields 27,117
Less: Present Value to Debt Holders -
Enterprise Value Before Illiquidity Discount $ 268,506
Illiquidity and Non-Control Discount 0%
Total Enterprise Value $ 268,506
Ownership Percentage 100%
Value of Enterprise Interest $ 268,506
- -----------------------------------------------------------------------------------------

EBITDA MULTIPLE RANGE
--------------------------------------------------------------------
4.5x 5.0x 5.5x 6.0x 6.5x
-------- -------- -------- -------- --------

15.0% $252,392 $269,498 $286,605 $303,711 $320,817
DISCOUNT 16.0% $244,494 $260,918 $277,342 $293,765 $310,189
FACTOR 17.0% $236,959 $252,732 $268,506 $284,280 $300,053
RANGE 18.0% $229,765 $244,919 $260,074 $275,229 $290,383
19.0% $222,894 $237,459 $252,024 $266,589 $281,153

(1) Unlevered Free Cash Flows discounted at 17.0%, with only 70.1% of Year 1
Unlevered FCF (and Tax Shields) being captured.

(2) Assumes a terminal value equal to last year EBITDA of $66.0 million
multiplied by an EBITDA multiple of 5.5x.

---------------------------
27 JANNEY MONTGOMERY SCOTT
===========================

The Hillman Group - Valuation Summary
- --------------------------------------------------------------------------------

[VALUATION SUMMARY BAR CHART]

Enterprise Value
--------------------------------------------------------------
Adjusted
Low High Median Average
--------------------------------------------------------------
COMPARABLE PUBLIC COMPANIES

LTM Revenue 53,893 239,127 79,625 103,811
LTM EBITDA 141,251 296,227 205,833 217,770
LTM EBIT 116,638 267,299 177,615 190,171

COMPARABLE TRANSACTION COMPANIES
LTM Revenue 256,334 321,018 298,042 296,331
LTM EBITDA 235,000 299,642 247,891 255,666
LTM EBIT 161,745 497,455 200,573 196,831

DISCOUNTED CASH FLOW Mid-point Mid-point
----------------------------------
DCF - EBITDA 244,919 293,765 268,506 268,506

LTM LTM LTM LTM LTM LTM DCF -
Revenue EBITDA EBIT Revenue EBITDA EBIT EBITDA

~~($239,178) ($38,272) ($25,676) ($239,178) ($38,272) ($25,676) ($268,506)~~

COMPARABLE COMPARABLE
PUBLIC COMPANIES ACQUISITION ACTIVITY DCF
-----------------------------------------------------------------------------------------

Median $79,625 $205,833 $177,615 $298,042 $247,891 $200,573 $268,506
Adj. Average $103,811 $217,770 $190,171 $296,331 $255,666 $196,831 $268,506

NOTE: ADJUSTED AVERAGE ELIMINATES THE HIGHEST AND LOWEST VALUE FOR COMPARABLE
COMPANIES AND FOR COMPARABLE TRANSACTIONS.

---------------------------
28 JANNEY MONTGOMERY SCOTT
===========================

- --------------------------------------------------------------------------------

VALUATION SUMMARY

---------------------------
JANNEY MONTGOMERY SCOTT
===========================

Per Share Equity Valuation Range
- --------------------------------------------------------------------------------

Low High
-------- --------

Kar Valuation $ 20,000 $ 25,000
STS Enterprise Value 25,000 30,000
Hillman Enterprise Value 225,000 250,000
-------- --------
Total $270,000 $305,000

Less: Outstanding Debt (1) 111,508 111,508
Trust Preferred Securities (1) 105,446 105,446
-------- --------
Equity Value $ 53,046 $ 88,046
======== ========

Diluted Shares Outstanding 7,374 7,374
Per Share Equity Value $ 7.19 $ 11.94
======== ========

- -----------------------
(1) As of March 31, 2000

---------------------------
30 JANNEY MONTGOMERY SCOTT
===========================

- --------------------------------------------------------------------------------

HISTORICAL STOCK PRICE PERFORMANCE

---------------------------
JANNEY MONTGOMERY SCOTT
===========================

Historical Stock Price Performance
- --------------------------------------------------------------------------------

- - In the past two years, the Company's stock has traded as high as $16.31
(May 13, 1999) and as low as $2.88 (December 6, 2000). The stock has not
traded at or above $12.00 per share since June 30, 1999, despite efforts to
deliver shareholder value through a strategic realignment of the Company's
business units.

- - Since early 1999, the Company's stock price has under-performed a composite
of selected publicly trade peers, as well as general market indices such as
the S&P Small Cap Industrials Index and the S&P 500 Composite.

- - In spite of some recent strengthening in the Hillman and Kar businesses,
the restructuring issues, a softening market for the STS segment, and the
highly leveraged nature of the Company's balance sheet, have all
contributed to a steady decline of the Company's stock price over the past
two years.

- - Also contributing to the Company's poor stock performance are investor
preoccupation with larger capitalization stocks and other industry sectors,
a lack of research coverage, and limited float and liquidity of the
Company's shares.

- - Over the past six months, roughly 1.7 million shares of the Company's
common stock have traded, at an average price of $3.56 per share.

---------------------------
32 JANNEY MONTGOMERY SCOTT
===========================

Historical Stock Price Performance
- --------------------------------------------------------------------------------

STOCK PRICE AND VOLUME ACTIVITY

[LINE GRAPH]

DATE PRICE VOLUME

4/16/99 14.38 16,900
4/19/99 15.13 11,400
4/20/99 15.25 2,300
4/21/99 15.56 7,700
4/22/99 15.25 14,100
4/23/99 15.00 8,400
4/26/99 15.25 3,900
4/27/99 15.63 47,800
4/28/99 15.00 3,800
4/29/99 15.38 9,100
4/30/99 16.13 11,500
5/3/99 16.25 6,700
5/4/99 16.13 10,500
5/5/99 15.88 1,900
5/6/99 15.38 2,700
5/7/99 15.38 36,000
5/10/99 16.00 2,900
5/11/99 16.13 2,600
5/12/99 16.25 1,600
5/13/99 16.31 2,900
5/14/99 16.00 4,300
5/17/99 15.88 2,900
5/18/99 15.50 2,900
5/19/99 15.38 1,600
5/20/99 15.44 1,400
5/21/99 15.38 100
5/24/99 15.13 4,000
5/25/99 14.38 7,300
5/26/99 14.31 9,400
5/27/99 14.25 6,300
5/28/99 14.25 200
6/1/99 14.63 4,700
6/2/99 14.25 2,900
6/3/99 14.38 1,200
6/4/99 14.13 300
6/7/99 14.50 3,700
6/8/99 14.44 0
6/9/99 14.50 1,000
6/10/99 14.25 1,300
6/11/99 14.50 12,600
6/14/99 14.13 17,000
6/15/99 14.06 600
6/16/99 14.13 9,400
6/17/99 14.50 17,800
6/18/99 14.50 1,000
6/21/99 14.38 1,000
6/22/99 13.94 3,000
6/23/99 13.75 2,700
6/24/99 13.06 10,200
6/25/99 13.13 0
6/28/99 12.88 19,100
6/29/99 12.81 8,800
6/30/99 12.94 1,300
7/1/99 11.00 60,700
7/2/99 10.88 64,400
7/6/99 10.81 56,100
7/7/99 10.44 34,700
7/8/99 9.75 34,800
7/9/99 9.69 24,300
7/12/99 9.44 13,000
7/13/99 8.63 102,900
7/14/99 8.06 100,500
7/15/99 8.44 175,700
7/16/99 8.63 44,600
7/19/99 8.63 47,600
7/20/99 8.69 7,400
7/21/99 8.69 8,100
7/22/99 8.81 15,800
7/23/99 9.13 18,900
7/26/99 9.13 12,100
7/27/99 9.06 78,600
7/28/99 9.13 16,800
7/29/99 8.81 15,800
7/30/99 9.00 19,100
8/2/99 9.06 7,500
8/3/99 8.94 3,700
8/4/99 8.75 12,100
8/5/99 8.69 4,300
8/6/99 8.63 6,100
8/9/99 8.63 5,800
8/10/99 8.69 11,300
8/11/99 8.56 16,700
8/12/99 8.44 14,700
8/13/99 8.44 14,400
8/16/99 8.38 4,900
8/17/99 8.25 17,700
8/18/99 8.19 7,200
8/19/99 7.94 35,700
8/20/99 7.88 3,000
8/23/99 7.75 16,100
8/24/99 7.63 10,700
8/25/99 7.63 4,400
8/26/99 7.31 17,600
8/27/99 7.38 8,400
8/30/99 7.13 4,000
8/31/99 6.88 7,500
9/1/99 6.75 12,500
9/2/99 6.75 6,000
9/3/99 6.75 1,200
9/7/99 7.00 23,600
9/8/99 7.25 25,100
9/9/99 7.38 12,500
9/10/99 7.25 7,500
9/13/99 7.25 15,600
9/14/99 7.00 4,600
9/15/99 6.75 75,200
9/16/99 6.69 3,000
9/17/99 6.50 12,800
9/20/99 6.44 15,900
9/21/99 6.44 7,100
9/22/99 5.69 55,800
9/23/99 5.94 39,100
9/24/99 5.63 42,000
9/27/99 5.44 16,000
9/28/99 5.25 14,800
9/29/99 4.88 26,600
9/30/99 5.63 31,100
10/1/99 5.38 29,900
10/4/99 5.25 31,100
10/5/99 5.25 1,000
10/6/99 5.25 4,200
10/7/99 5.19 9,300
10/8/99 5.50 17,200
10/11/99 5.63 14,800
10/12/99 5.19 47,600
10/13/99 5.19 13,900
10/14/99 5.00 26,200
10/15/99 5.00 10,800
10/18/99 4.63 23,900
10/19/99 5.13 46,800
10/20/99 5.88 23,100
10/21/99 6.38 26,200
10/22/99 6.75 20,600
10/25/99 7.25 22,600
10/26/99 7.13 27,300
10/27/99 7.00 18,300
10/28/99 5.63 68,100
10/29/99 4.81 89,000
11/1/99 4.25 112,100
11/2/99 4.13 59,700
11/3/99 4.69 53,700
11/4/99 4.56 69,700
11/5/99 4.63 8,800
11/8/99 4.38 39,400
11/9/99 4.31 10,600
11/10/99 4.25 16,700
11/11/99 4.13 7,500
11/12/99 4.00 46,400
11/15/99 3.88 23,500
11/16/99 3.75 46,400
11/17/99 3.75 42,100
11/18/99 3.75 43,300
11/19/99 3.81 29,700
11/22/99 3.56 35,800
11/23/99 3.50 476,800
11/24/99 3.94 44,700
11/26/99 4.19 24,400
11/29/99 4.38 50,400
11/30/99 4.88 79,900
12/1/99 5.00 28,000
12/2/99 5.25 35,100
12/3/99 6.50 68,200
12/6/99 6.13 77,100
12/7/99 6.19 21,100
12/8/99 5.50 64,600
12/9/99 5.50 10,100
12/10/99 5.44 20,500
12/13/99 5.38 10,500
12/14/99 5.13 31,300
12/15/99 5.00 5,600
12/16/99 4.31 33,400
12/17/99 4.25 95,700
12/20/99 4.06 32,500
12/21/99 4.00 55,600
12/22/99 3.94 65,400
12/23/99 4.00 28,600
12/27/99 3.94 58,000
12/28/99 4.13 62,700
12/29/99 4.25 27,000
12/30/99 4.31 44,900
12/31/99 4.25 45,000
1/3/00 4.69 17,900
1/4/00 5.19 31,400
1/5/00 5.06 11,300
1/6/00 5.38 35,600
1/7/00 5.25 12,000
1/10/00 5.44 21,600
1/11/00 5.75 21,000
1/12/00 5.81 2,300
1/13/00 5.69 12,200
1/14/00 5.75 14,200
1/18/00 5.88 23,600
1/19/00 6.25 11,100
1/20/00 5.75 45,100
1/21/00 5.44 13,600
1/24/00 5.31 34,100
1/25/00 4.81 42,900
1/26/00 4.50 32,500
1/27/00 5.13 23,800
1/28/00 5.00 11,800
1/31/00 5.00 30,400
2/1/00 5.19 27,600
2/2/00 5.31 5,300
2/3/00 5.00 15,500
2/4/00 5.13 14,400
2/7/00 5.38 3,500
2/8/00 5.13 3,900
2/9/00 5.06 5,700
2/10/00 5.88 110,800
2/11/00 5.69 56,000
2/14/00 5.63 32,900
2/15/00 5.38 12,400
2/16/00 5.38 21,200
2/17/00 5.44 7,600
2/18/00 5.31 9,600
2/22/00 5.25 3,500
2/23/00 5.19 3,700
2/24/00 5.13 2,100
2/25/00 5.00 2,300
2/28/00 4.94 4,300
2/29/00 5.00 1,000
3/1/00 5.00 3,500
3/2/00 5.13 18,400
3/3/00 5.44 31,900
3/6/00 5.25 5,800
3/7/00 5.38 5,700
3/8/00 5.38 6,400
3/9/00 5.31 6,300
3/10/00 5.06 20,900
3/13/00 4.69 23,000
3/14/00 4.69 5,200
3/15/00 4.63 10,200
3/16/00 4.56 2,500
3/17/00 4.63 25,600
3/20/00 4.88 23,300
3/21/00 5.13 13,400
3/22/00 4.88 4,700
3/23/00 4.69 21,900
3/24/00 4.75 4,200
3/27/00 4.75 12,400
3/28/00 4.75 1,500
3/29/00 4.69 6,500
3/30/00 4.63 10,300
3/31/00 4.63 300
4/3/00 4.63 2,500
4/4/00 4.50 13,500
4/5/00 4.50 4,900
4/6/00 4.25 24,500
4/7/00 4.44 2,000
4/10/00 4.75 8,300
4/11/00 4.69 1,000
4/12/00 4.69 5,700
4/13/00 4.75 7,700
4/14/00 4.69 5,800
4/17/00 4.38 10,800
4/18/00 4.38 3,900
4/19/00 4.63 26,100
4/20/00 4.88 30,500
4/24/00 4.81 4,400
4/25/00 4.81 5,500
4/26/00 4.50 10,800
4/27/00 4.69 24,000
4/28/00 4.56 1,500
5/1/00 4.50 6,000
5/2/00 4.50 3,600
5/3/00 4.50 4,700
5/4/00 4.81 12,500
5/5/00 4.69 5,800
5/8/00 4.81 8,100
5/9/00 4.75 7,600
5/10/00 4.56 3,700
5/11/00 4.56 4,000
5/12/00 4.69 4,600
5/15/00 4.75 5,000
5/16/00 4.69 5,200
5/17/00 4.56 5,700
5/18/00 4.75 3,000
5/19/00 4.81 8,100
5/22/00 4.56 3,000
5/23/00 4.38 9,300
5/24/00 4.31 5,900
5/25/00 4.31 2,200
5/26/00 4.44 3,500
5/30/00 4.31 3,700
5/31/00 4.50 8,800
6/1/00 4.38 2,300
6/2/00 4.38 16,700
6/5/00 4.56 3,600
6/6/00 4.44 10,700
6/7/00 4.38 6,100
6/8/00 4.38 6,400
6/9/00 4.44 2,600
6/12/00 4.50 2,800
6/13/00 4.44 3,700
6/14/00 4.44 300
6/15/00 4.44 1,600
6/16/00 4.38 8,300
6/19/00 4.44 3,200
6/20/00 4.44 8,000
6/21/00 4.38 3,300
6/22/00 4.38 36,300
6/23/00 4.88 31,000
6/26/00 4.75 12,700
6/27/00 4.94 4,200
6/28/00 4.94 5,300
6/29/00 5.00 20,200
6/30/00 5.06 45,300
7/3/00 5.06 9,800
7/5/00 5.19 3,700
7/6/00 5.19 11,700
7/7/00 5.19 8,800
7/10/00 5.19 1,700
7/11/00 5.06 1,500
7/12/00 5.06 1,700
7/13/00 5.19 3,100
7/14/00 5.19 800
7/17/00 5.13 5,900
7/18/00 5.19 2,100
7/19/00 5.25 4,000
7/20/00 5.13 8,300
7/21/00 5.13 6,600
7/24/00 5.13 500
7/25/00 5.38 19,000
7/26/00 5.13 8,800
7/27/00 4.94 17,800
7/28/00 4.88 1,000
7/31/00 4.88 6,100
8/1/00 4.88 2,500
8/2/00 4.81 2,700
8/3/00 4.75 2,400
8/4/00 4.69 30,600
8/7/00 4.69 600
8/8/00 4.69 800
8/9/00 4.69 3,500
8/10/00 4.69 2,000
8/11/00 4.69 1,000
8/14/00 4.69 500
8/15/00 4.69 600
8/16/00 4.69 1,100
8/17/00 4.63 2,500
8/18/00 4.69 1,500
8/21/00 4.50 9,000
8/22/00 4.50 5,300
8/23/00 4.50 500
8/24/00 4.50 6,100
8/25/00 4.50 1,600
8/28/00 4.56 100
8/29/00 4.50 2,400
8/30/00 4.50 9,000
8/31/00 4.38 6,900
9/1/00 4.38 6,200
9/5/00 4.31 5,400
9/6/00 4.19 11,500
9/7/00 4.25 2,500
9/8/00 4.25 15,900
9/11/00 4.25 5,400
9/12/00 4.31 3,900
9/13/00 4.38 1,000
9/14/00 4.44 1,900
9/15/00 4.31 1,200
9/18/00 4.25 5,900
9/19/00 4.13 14,500
9/20/00 4.13 3,100
9/21/00 4.13 3,600
9/22/00 4.00 6,900
9/25/00 3.75 22,900
9/26/00 4.00 11,300
9/27/00 3.81 6,700
9/28/00 4.00 2,000
9/29/00 3.94 1,100
10/2/00 3.94 2,100
10/3/00 3.81 6,400
10/4/00 3.81 1,600
10/5/00 3.69 8,300
10/6/00 3.75 1,500
10/9/00 3.75 3,600
10/10/00 3.56 17,700
10/11/00 3.50 25,500
10/12/00 3.44 14,900
10/13/00 3.38 12,000
10/16/00 3.44 1,900
10/17/00 3.25 9,900
10/18/00 3.13 6,600
10/19/00 3.19 9,200
10/20/00 3.00 45,900
10/23/00 3.00 13,800
10/24/00 3.00 58,400
10/25/00 2.94 318,200
10/26/00 3.00 1,500
10/27/00 3.00 8,700
10/30/00 3.13 500
10/31/00 3.00 3,300
11/1/00 3.00 100
11/2/00 3.13 6,000
11/3/00 3.19 2,500
11/6/00 3.00 7,000
11/7/00 3.13 10,800
11/8/00 3.06 6,700
11/9/00 3.31 6,200
11/10/00 3.25 7,100
11/13/00 3.13 5,400
11/14/00 3.13 1,700
11/15/00 3.06 22,300
11/16/00 3.00 15,800
11/17/00 3.13 15,000
11/20/00 3.63 15,200
11/21/00 3.56 10,900
11/22/00 3.50 22,800
11/24/00 3.38 4,700
11/27/00 3.06 22,000
11/28/00 3.13 12,100
11/29/00 3.13 5,400
11/30/00 3.19 15,900
12/1/00 3.06 14,300
12/4/00 2.94 14,800
12/5/00 3.00 85,000
12/6/00 2.88 6,300
12/7/00 3.00 6,600
12/8/00 3.25 38,800
12/11/00 3.38 15,900
12/12/00 3.00 33,900
12/13/00 3.00 3,900
12/14/00 3.00 23,600
12/15/00 3.13 4,100
12/18/00 3.19 29,300
12/19/00 3.19 9,800
12/20/00 3.13 12,300
12/21/00 3.06 8,500
12/22/00 3.06 19,700
12/26/00 3.13 58,200
12/27/00 3.25 22,900
12/28/00 3.06 17,500
12/29/00 3.06 68,600
1/2/01 3.06 3,400
1/3/01 3.13 21,600
1/4/01 3.19 1,800
1/5/01 3.25 9,400
1/8/01 3.25 3,400
1/9/01 3.25 11,600
1/10/01 3.44 15,600
1/11/01 3.44 1,100
1/12/01 3.44 7,500
1/16/01 3.50 8,900
1/17/01 3.38 14,100
1/18/01 3.25 18,000
1/19/01 3.63 27,900
1/22/01 3.69 8,800
1/23/01 3.75 7,000
1/24/01 3.75 200
1/25/01 3.81 5,100
1/26/01 4.06 4,900
1/29/01 4.35 18,500
1/30/01 4.74 37,300
1/31/01 4.76 9,500
2/1/01 4.68 1,800
2/2/01 4.75 2,900
2/5/01 4.75 3,600
2/6/01 4.52 11,400
2/7/01 4.50 4,200
2/8/01 4.65 8,100
2/9/01 4.50 5,200
2/12/01 4.30 10,000
2/13/01 4.10 4,400
2/14/01 4.10 400
2/15/01 4.05 2,700
2/16/01 3.68 24,400
2/20/01 3.70 4,200
2/21/01 3.67 500
2/22/01 3.64 3,000
2/23/01 3.70 100
2/26/01 3.70 2,600
2/27/01 3.70 2,400
2/28/01 3.70 600
3/1/01 3.75 8,100
3/2/01 3.70 3,400
3/5/01 3.70 200
3/6/01 3.79 1,600
3/7/01 3.80 2,000
3/8/01 3.78 1,000
3/9/01 3.83 0
3/12/01 3.80 1,700
3/13/01 3.90 4,300
3/14/01 3.90 1,300
3/15/01 3.90 6,000
3/16/01 3.85 1,400
3/19/01 3.85 200
3/20/01 3.85 100
3/21/01 3.85 200
3/22/01 3.75 4,000
3/23/01 3.75 2,300
3/26/01 3.70 3,500
3/27/01 3.74 2,000
3/28/01 3.90 4,600
3/29/01 3.80 1,400
3/30/01 4.00 6,200
4/2/01 3.90 1,600
4/3/01 4.00 14,600
4/4/01 4.00 2,700
4/5/01 3.85 1,700
4/6/01 3.98 7,000
4/9/01 4.00 25,500
4/10/01 4.10 48,200
4/11/01 4.03 300
4/12/01 3.94 1,600
4/16/01 4.02 800
4/17/01 3.91 500
4/18/01 3.90 9,200
4/19/01 3.90 3,100

---------------------------
33 JANNEY MONTGOMERY SCOTT
===========================

Relative Historical Stock Performance
- --------------------------------------------------------------------------------

INDEXED PRICES
Apr 18, 1999 - Apr 19, 2001

[LINE GRAPH]

DATE SDP S&P500 PEER GROUP
---- --- ------ ----------

4/16/99 100.00 100.00 100.00
4/19/99 105.22 97.76 101.78
4/20/99 106.09 99.03 100.88
4/21/99 108.26 101.30 100.17
4/22/99 106.09 103.02 99.29
4/23/99 104.35 102.87 99.41
4/26/99 106.09 103.11 100.61
4/27/99 108.70 103.32 100.64
4/28/99 104.35 102.42 101.87
4/29/99 106.96 101.81 94.41
4/30/99 112.17 101.23 95.82
5/3/99 113.04 102.70 101.16
5/4/99 112.17 100.99 99.42
5/5/99 110.43 102.15 99.83
5/6/99 106.96 100.99 100.39
5/7/99 106.96 101.97 101.04
5/10/99 111.30 101.61 101.11
5/11/99 112.17 102.78 102.60
5/12/99 113.04 103.41 103.06
5/13/99 113.48 103.68 103.09
5/14/99 111.30 101.43 101.84
5/17/99 110.43 101.55 101.95
5/18/99 107.83 101.09 102.18
5/19/99 106.96 101.91 102.42
5/20/99 107.39 101.50 102.58
5/21/99 106.96 100.86 103.25
5/24/99 105.22 99.06 103.63
5/25/99 100.00 97.38 103.68
5/26/99 99.57 98.92 104.63
5/27/99 99.13 97.15 105.43
5/28/99 99.13 98.70 106.30
6/1/99 101.74 98.12 108.07
6/2/99 99.13 98.17 107.70
6/3/99 100.00 98.52 107.47
6/4/99 98.26 100.66 107.72
6/7/99 100.87 101.18 109.62
6/8/99 100.43 99.87 109.62
6/9/99 100.87 99.97 107.57
6/10/99 99.13 98.77 107.61
6/11/99 100.87 98.08 106.93
6/14/99 98.26 98.10 107.61
6/15/99 97.83 98.65 107.85
6/16/99 98.26 100.87 108.60
6/17/99 100.87 101.58 110.31
6/18/99 100.87 101.81 108.22
6/21/99 100.00 102.27 110.30
6/22/99 96.96 101.28 110.21
6/23/99 95.65 101.07 107.70
6/24/99 90.87 99.76 107.00
6/25/99 91.30 99.72 107.28
6/28/99 89.57 100.94 108.22
6/29/99 89.13 102.46 107.13
6/30/99 90.00 104.07 109.27
7/1/99 76.52 104.70 108.07
7/2/99 75.65 105.48 111.38
7/6/99 75.22 105.24 109.97
7/7/99 72.61 105.83 109.93
7/8/99 67.83 105.72 110.17
7/9/99 67.39 106.39 109.95
7/12/99 65.65 106.07 110.46
7/13/99 60.00 105.65 108.61
7/14/99 56.09 106.00 107.39
7/15/99 58.70 106.87 107.43
7/16/99 60.00 107.56 106.86
7/19/99 60.00 106.72 106.26
7/20/99 60.43 104.40 105.24
7/21/99 60.43 104.57 105.15
7/22/99 61.30 103.18 104.12
7/23/99 63.48 102.88 103.26
7/26/99 63.48 102.18 103.92
7/27/99 63.04 103.32 104.66
7/28/99 63.48 103.52 102.05
7/29/99 61.30 101.67 99.75
7/30/99 62.61 100.74 97.60
8/2/99 63.04 100.69 97.97
8/3/99 62.17 100.24 97.79
8/4/99 60.87 98.96 95.86
8/5/99 60.43 99.60 94.63
8/6/99 60.00 98.58 94.13
8/9/99 60.00 98.39 93.53
8/10/99 60.43 97.15 91.34
8/11/99 59.57 98.71 92.56
8/12/99 58.70 98.42 91.22
8/13/99 58.70 100.66 92.26
8/16/99 58.26 100.89 93.04
8/17/99 57.39 101.91 93.09
8/18/99 56.96 101.05 92.97
8/19/99 55.22 100.35 91.59
8/20/99 54.78 101.34 92.37
8/23/99 53.91 103.13 92.75
8/24/99 53.04 103.37 92.60
8/25/99 53.04 104.76 93.57
8/26/99 50.87 103.26 93.76
8/27/99 51.30 102.22 92.62
8/30/99 49.57 100.38 92.14
8/31/99 47.83 100.11 92.66
9/1/99 46.96 100.92 92.84
9/2/99 46.96 100.01 91.75
9/3/99 46.96 102.90 93.81
9/7/99 48.70 102.38 93.85
9/8/99 50.43 101.91 93.76
9/9/99 51.30 102.17 93.46
9/10/99 50.43 102.48 92.40
9/13/99 50.43 101.91 92.47
9/14/99 48.70 101.31 90.42
9/15/99 46.96 99.92 90.38
9/16/99 46.52 99.96 90.22
9/17/99 45.22 101.24 88.76
9/20/99 44.78 101.25 88.18
9/21/99 44.78 99.13 86.48
9/22/99 39.57 99.36 88.25
9/23/99 41.30 97.07 86.74
9/24/99 39.13 96.84 86.95
9/27/99 37.83 97.29 86.84
9/28/99 36.52 97.21 85.59
9/29/99 33.91 96.16 85.81
9/30/99 39.13 97.25 87.58
10/1/99 37.39 97.26 86.51
10/4/99 36.52 98.91 86.80
10/5/99 36.52 98.66 86.19
10/6/99 36.52 100.49 87.79
10/7/99 36.09 99.90 87.06
10/8/99 38.26 101.29 88.83
10/11/99 39.13 101.23 88.91
10/12/99 36.09 99.55 85.45
10/13/99 36.09 97.46 83.96
10/14/99 34.78 97.30 84.75
10/15/99 34.78 94.57 83.51
10/18/99 32.17 95.08 81.76
10/19/99 35.65 95.63 82.33
10/20/99 40.87 97.76 83.17
10/21/99 44.35 97.32 83.21
10/22/99 46.96 98.68 84.98
10/25/99 50.43 98.08 85.15
10/26/99 49.57 97.19 84.23
10/27/99 48.70 98.31 84.96
10/28/99 39.13 101.78 85.97
10/29/99 33.48 103.33 86.26
11/1/99 29.57 102.66 86.68
11/2/99 28.70 102.18 88.13
11/3/99 32.61 102.72 86.57
11/4/99 31.74 103.31 87.11
11/5/99 32.17 103.88 88.74
11/8/99 30.43 104.40 87.68
11/9/99 30.00 103.51 87.88
11/10/99 29.57 104.13 87.63
11/11/99 28.70 104.74 87.93
11/12/99 27.83 105.84 87.23
11/15/99 26.96 105.72 87.02
11/16/99 26.09 107.66 89.09
11/17/99 26.09 106.95 87.87
11/18/99 26.09 108.03 86.98
11/19/99 26.52 107.81 86.67
11/22/99 24.78 107.73 87.10
11/23/99 24.35 106.49 86.03
11/24/99 27.39 107.44 86.62
11/26/99 29.13 107.40 84.59
11/29/99 30.43 106.73 84.68
11/30/99 33.91 105.30 85.42
12/1/99 34.78 105.97 84.71
12/2/99 36.52 106.83 84.87
12/3/99 45.22 108.67 84.81
12/6/99 42.61 107.91 85.64
12/7/99 43.04 106.84 84.97
12/8/99 38.26 106.44 84.87
12/9/99 38.26 106.76 83.26
12/10/99 37.83 107.43 83.51
12/13/99 37.39 107.29 83.36
12/14/99 35.65 106.38 80.98
12/15/99 34.78 107.15 79.74
12/16/99 30.00 107.56 79.16
12/17/99 29.57 107.74 78.76
12/20/99 28.26 107.51 77.88
12/21/99 27.83 108.68 77.28
12/22/99 27.39 108.88 79.11
12/23/99 27.83 110.56 79.43
12/27/99 27.39 110.47 79.47
12/28/99 28.70 110.51 81.91
12/29/99 29.57 110.95 81.50
12/30/99 30.00 111.03 81.34
12/31/99 29.57 111.39 82.40
1/3/00 32.61 110.33 80.18
1/4/00 36.09 106.10 78.71
1/5/00 35.22 106.30 78.02
1/6/00 37.39 106.40 77.82
1/7/00 36.52 109.29 81.80
1/10/00 37.83 110.51 80.55
1/11/00 40.00 109.06 79.01
1/12/00 40.43 108.59 78.44
1/13/00 39.57 109.91 80.40
1/14/00 40.00 111.08 80.11
1/18/00 40.87 110.32 80.35
1/19/00 43.48 110.38 81.24
1/20/00 40.00 109.60 79.30
1/21/00 37.83 109.28 79.26
1/24/00 36.96 106.26 78.76
1/25/00 33.48 106.90 77.93
1/26/00 31.30 106.45 76.58
1/27/00 35.65 106.03 76.15
1/28/00 34.78 103.12 75.51
1/31/00 34.78 105.72 78.45
2/1/00 36.09 106.84 75.97
2/2/00 36.96 106.83 76.06
2/3/00 34.78 108.03 76.89
2/4/00 35.65 107.99 76.35
2/7/00 37.39 107.98 77.59
2/8/00 35.65 109.31 77.16
2/9/00 35.22 107.03 75.96
2/10/00 40.87 107.42 75.68
2/11/00 39.57 105.16 73.88
2/14/00 39.13 105.38 75.04
2/15/00 37.39 106.30 75.62
2/16/00 37.39 105.21 75.22
2/17/00 37.83 105.25 75.16
2/18/00 36.96 102.05 75.03
2/22/00 36.52 102.51 75.36
2/23/00 36.09 103.16 74.38
2/24/00 35.65 102.61 73.76
2/25/00 34.78 101.09 73.57
2/28/00 34.35 102.20 74.21
2/29/00 34.78 103.60 76.31
3/1/00 34.78 104.56 74.48
3/2/00 35.65 104.76 74.20
3/3/00 37.83 106.84 74.09
3/6/00 36.52 105.48 72.24
3/7/00 37.39 102.78 69.16
3/8/00 37.39 103.62 70.42
3/9/00 36.96 106.27 69.98
3/10/00 35.22 105.77 70.05
3/13/00 32.61 104.90 71.09
3/14/00 32.61 103.04 69.12
3/15/00 32.17 105.55 72.93
3/16/00 31.74 110.57 77.14
3/17/00 32.17 111.03 78.06
3/20/00 33.91 110.43 77.03
3/21/00 35.65 113.26 77.19
3/22/00 33.91 113.77 77.29
3/23/00 32.61 115.80 78.62
3/24/00 33.04 115.80 76.95
3/27/00 33.04 115.53 77.58
3/28/00 33.04 114.31 76.63
3/29/00 32.61 114.37 76.40
3/30/00 32.17 112.81 76.93
3/31/00 32.17 113.61 77.71
4/3/00 32.17 114.18 79.09
4/4/00 31.30 113.32 79.14
4/5/00 31.30 112.77 79.82
4/6/00 29.57 113.82 80.59
4/7/00 30.87 114.96 79.02
4/10/00 33.04 114.06 79.86
4/11/00 32.61 113.77 82.06
4/12/00 32.61 111.23 80.79
4/13/00 33.04 109.21 80.37
4/14/00 32.61 102.85 77.86
4/17/00 30.43 106.25 79.70
4/18/00 30.43 109.30 80.69
4/19/00 32.17 108.22 80.47
4/20/00 33.91 108.76 80.69
4/24/00 33.48 108.40 81.72
4/25/00 33.48 112.01 84.83
4/26/00 31.30 110.76 85.30
4/27/00 32.61 111.06 84.38
4/28/00 31.74 110.12 85.34
5/1/00 31.30 111.32 86.23
5/2/00 31.30 109.65 85.34
5/3/00 31.30 107.29 84.65
5/4/00 33.48 106.87 84.60
5/5/00 32.61 108.61 83.50
5/8/00 33.48 107.97 84.15
5/9/00 33.04 107.06 83.72
5/10/00 31.74 104.86 82.75
5/11/00 31.74 106.73 83.07
5/12/00 32.61 107.73 82.90
5/15/00 33.04 110.11 82.46
5/16/00 32.61 111.15 83.88
5/17/00 31.74 109.77 81.82
5/18/00 33.04 108.96 81.10
5/19/00 33.48 106.67 80.84
5/22/00 31.74 106.20 80.49
5/23/00 30.43 104.16 80.54
5/24/00 30.00 106.07 81.65
5/25/00 30.00 104.74 80.59
5/26/00 30.87 104.47 78.84
5/30/00 30.00 107.84 79.80
5/31/00 31.30 107.70 78.03
6/1/00 30.43 109.84 79.19
6/2/00 30.43 112.00 79.60
6/5/00 31.74 111.27 79.55
6/6/00 30.87 110.53 78.65
6/7/00 30.43 111.55 76.95
6/8/00 30.43 110.82 76.53
6/9/00 30.87 110.46 76.33
6/12/00 31.30 109.63 76.22
6/13/00 30.87 111.41 76.79
6/14/00 30.87 111.49 77.18
6/15/00 30.87 112.11 75.89
6/16/00 30.43 111.03 74.33
6/19/00 30.87 112.66 73.00
6/20/00 30.87 111.90 71.98
6/21/00 30.43 112.14 71.94
6/22/00 30.43 110.10 71.27
6/23/00 33.91 109.29 71.41
6/26/00 33.04 110.33 71.06
6/27/00 34.35 109.97 71.64
6/28/00 34.35 110.30 71.66
6/29/00 34.78 109.35 70.98
6/30/00 35.22 110.28 69.28
7/3/00 35.22 111.41 71.86
7/5/00 36.09 109.65 71.89
7/6/00 36.09 110.44 72.04
7/7/00 36.09 112.12 73.01
7/10/00 36.09 111.87 73.42
7/11/00 35.22 112.27 74.37
7/12/00 35.22 113.19 74.03
7/13/00 36.09 113.41 74.04
7/14/00 36.09 114.48 74.13
7/17/00 35.65 114.52 72.26
7/18/00 36.09 113.25 72.49
7/19/00 36.52 112.35 71.10
7/20/00 35.65 113.39 70.80
7/21/00 35.65 112.22 70.03
7/24/00 35.65 111.02 71.11
7/25/00 37.39 111.79 70.69
7/26/00 35.65 110.12 71.01
7/27/00 34.35 109.90 70.25
7/28/00 33.91 107.65 69.24
7/31/00 33.91 108.48 69.36
8/1/00 33.91 109.03 69.94
8/2/00 33.48 109.08 70.70
8/3/00 33.04 110.13 69.33
8/4/00 32.61 110.91 70.05
8/7/00 32.61 112.15 70.22
8/8/00 32.61 112.42 71.07
8/9/00 32.61 111.67 71.13
8/10/00 32.61 110.71 71.66
8/11/00 32.61 111.59 72.93
8/14/00 32.61 113.08 73.76
8/15/00 32.61 112.54 72.54
8/16/00 32.61 112.19 72.79
8/17/00 32.17 113.42 72.47
8/18/00 32.61 113.09 72.12
8/21/00 31.30 113.68 72.44
8/22/00 31.30 113.58 72.06
8/23/00 31.30 114.18 71.05
8/24/00 31.30 114.35 71.49
8/25/00 31.30 114.21 71.31
8/28/00 31.74 114.79 70.98
8/29/00 31.30 114.47 70.59
8/30/00 31.30 113.92 70.40
8/31/00 30.43 115.06 70.40
9/1/00 30.43 115.30 69.79
9/5/00 30.00 114.26 71.10
9/6/00 29.13 113.13 71.70
9/7/00 29.57 113.91 71.45
9/8/00 29.57 113.31 70.77
9/11/00 29.57 112.91 71.55
9/12/00 30.00 112.36 71.32
9/13/00 30.43 112.58 70.70
9/14/00 30.87 112.27 68.76
9/15/00 30.00 111.13 67.92
9/18/00 29.57 109.52 66.98
9/19/00 28.70 110.68 65.84
9/20/00 28.70 110.03 65.14
9/21/00 28.70 109.86 65.45
9/22/00 27.83 109.83 65.05
9/25/00 26.09 109.10 64.24
9/26/00 27.83 108.20 64.05
9/27/00 26.52 108.16 64.88
9/28/00 27.83 110.56 65.77
9/29/00 27.39 108.91 65.57
10/2/00 27.39 108.89 64.92
10/3/00 26.52 108.15 66.66
10/4/00 26.52 108.74 66.69
10/5/00 25.65 108.89 67.25
10/6/00 26.09 106.82 66.50
10/9/00 26.09 106.29 66.55
10/10/00 24.78 105.16 66.14
10/11/00 24.35 103.46 66.04
10/12/00 23.91 100.82 65.72
10/13/00 23.48 104.18 66.06
10/16/00 23.91 104.22 65.71
10/17/00 22.61 102.35 65.02
10/18/00 21.74 101.75 64.24
10/19/00 22.17 105.29 66.11
10/20/00 20.87 105.91 65.56
10/23/00 20.87 105.82 65.58
10/24/00 20.87 106.00 66.12
10/25/00 20.43 103.48 65.47
10/26/00 20.87 103.45 65.97
10/27/00 20.87 104.59 65.73
10/30/00 21.74 106.04 67.22
10/31/00 20.87 108.37 70.01
11/1/00 20.87 107.75 69.27
11/2/00 21.74 108.29 69.11
11/3/00 22.17 108.16 69.17
11/6/00 20.87 108.58 69.84
11/7/00 21.74 108.56 69.39
11/8/00 21.30 106.84 69.28
11/9/00 23.04 106.15 68.45
11/10/00 22.61 103.56 64.76
11/13/00 21.74 102.45 65.18
11/14/00 21.74 104.85 65.35
11/15/00 21.30 105.37 65.72
11/16/00 20.87 104.04 65.07
11/17/00 21.74 103.69 65.75
11/20/00 25.22 101.79 64.43
11/21/00 24.78 102.15 63.78
11/22/00 24.35 100.25 63.18
11/24/00 23.48 101.73 64.47
11/27/00 21.30 102.27 65.13
11/28/00 21.74 101.30 63.76
11/29/00 21.74 101.74 64.19
11/30/00 22.17 99.69 63.49
12/1/00 21.30 99.71 64.55
12/4/00 20.43 100.45 66.39
12/5/00 20.87 104.36 66.61
12/6/00 20.00 102.46 65.81
12/7/00 20.87 101.86 66.05
12/8/00 22.61 103.86 66.61
12/11/00 23.48 104.64 67.75
12/12/00 20.87 103.96 69.50
12/13/00 20.87 103.11 69.56
12/14/00 20.87 101.66 69.54
12/15/00 21.74 99.48 69.21
12/18/00 22.17 100.28 70.76
12/19/00 22.17 98.98 73.01
12/20/00 21.74 95.89 72.49
12/21/00 21.30 96.65 75.83
12/22/00 21.30 99.01 78.58
12/26/00 21.74 99.71 79.05
12/27/00 22.61 100.75 82.21
12/28/00 21.30 101.15 82.12
12/29/00 21.30 100.10 82.17
1/2/01 21.30 97.29 82.51
1/3/01 21.74 102.17 84.27
1/4/01 22.17 101.09 84.82
1/5/01 22.61 98.43 83.10
1/8/01 22.61 98.25 82.98
1/9/01 22.61 98.62 83.53
1/10/01 23.91 99.57 82.71
1/11/01 23.91 100.59 81.96
1/12/01 23.91 99.95 82.48
1/16/01 24.35 100.58 81.77
1/17/01 23.48 100.79 81.61
1/18/01 22.61 102.20 80.25
1/19/01 25.22 101.78 80.54
1/22/01 25.65 101.81 80.29
1/23/01 26.09 103.14 79.13
1/24/01 26.09 103.43 79.41
1/25/01 26.52 102.92 79.31
1/26/01 28.26 102.73 78.65
1/29/01 30.26 103.42 78.20
1/30/01 32.97 104.15 78.90
1/31/01 33.11 103.56 79.94
2/1/01 32.56 104.13 79.62
2/2/01 33.04 102.31 79.63
2/5/01 33.04 102.68 80.24
2/6/01 31.44 102.52 81.15
2/7/01 31.30 101.66 82.66
2/8/01 32.35 101.03 83.00
2/9/01 31.30 99.68 82.71
2/12/01 29.91 100.86 83.50
2/13/01 28.52 99.98 84.33
2/14/01 28.52 99.77 84.08
2/15/01 28.17 100.58 85.01
2/16/01 25.60 98.68 85.12
2/20/01 25.74 96.96 87.16
2/21/01 25.53 95.17 87.31
2/22/01 25.32 94.98 85.76
2/23/01 25.74 94.45 84.32
2/26/01 25.74 96.11 85.58
2/27/01 25.74 95.37 85.05
2/28/01 25.74 94.01 84.41
3/1/01 26.09 94.10 84.50
3/2/01 25.74 93.57 85.12
3/5/01 25.74 94.12 85.72
3/6/01 26.37 95.06 85.72
3/7/01 26.43 95.67 85.42
3/8/01 26.30 95.89 85.67
3/9/01 26.61 93.51 84.65
3/12/01 26.43 89.47 83.60
3/13/01 27.13 90.80 83.24
3/14/01 27.13 88.45 80.96
3/15/01 27.13 88.97 81.89
3/16/01 26.78 87.23 79.93
3/19/01 26.78 88.77 81.05
3/20/01 26.78 86.63 80.71
3/21/01 26.78 85.08 78.40
3/22/01 26.09 84.73 77.92
3/23/01 26.09 86.42 77.23
3/26/01 25.74 87.39 80.10
3/27/01 26.02 89.63 80.83
3/28/01 27.13 87.44 81.17
3/29/01 26.43 87.03 80.23
3/30/01 27.83 87.97 81.21
4/2/01 27.13 86.87 81.51
4/3/01 27.83 83.89 79.55
4/4/01 27.83 83.64 81.33
4/5/01 26.78 87.30 84.07
4/6/01 27.69 85.55 83.33
4/9/01 27.83 86.25 84.25
4/10/01 28.52 88.58 85.85
4/11/01 28.03 88.39 84.06
4/12/01 27.41 89.73 85.09
4/16/01 27.97 89.44 85.95
4/17/01 27.20 90.36 85.97
4/18/01 27.13 93.87 88.48
4/19/01 27.13 95.05 87.30

---------------------------
34 JANNEY MONTGOMERY SCOTT
===========================

Recent Stock Price Performance - Last Six Months
- --------------------------------------------------------------------------------

STOCK PRICE AND VOLUME ACTIVITY FOR THE LAST SIX MONTHS

[LINE GRAPH AND BAR CHART]

60 DAY
DATE PRICE VOLUME TRAILING AVERAGE
---- ----- ------ ----------------

10/12/00 3.44 14,900 4.39
10/13/00 3.38 12,000 4.36
10/16/00 3.44 1,900 4.33
10/17/00 3.25 9,900 4.30
10/18/00 3.13 6,600 4.26
10/19/00 3.19 9,200 4.23
10/20/00 3.00 45,900 4.20
10/23/00 3.00 13,800 4.17
10/24/00 3.00 58,400 4.14
10/25/00 2.94 318,200 4.10
10/26/00 3.00 1,500 4.07
10/27/00 3.00 8,700 4.04
10/30/00 3.13 500 4.02
10/31/00 3.00 3,300 3.99
11/1/00 3.00 100 3.96
11/2/00 3.13 6,000 3.94
11/3/00 3.19 2,500 3.91
11/6/00 3.00 7,000 3.88
11/7/00 3.13 10,800 3.86
11/8/00 3.06 6,700 3.83
11/9/00 3.31 6,200 3.81
11/10/00 3.25 7,100 3.78
11/13/00 3.13 5,400 3.76
11/14/00 3.13 1,700 3.74
11/15/00 3.06 22,300 3.71
11/16/00 3.00 15,800 3.69
11/17/00 3.13 15,000 3.66
11/20/00 3.63 15,200 3.65
11/21/00 3.56 10,900 3.63
11/22/00 3.50 22,800 3.62
11/24/00 3.38 4,700 3.60
11/27/00 3.06 22,000 3.58
11/28/00 3.13 12,100 3.55
11/29/00 3.13 5,400 3.53
11/30/00 3.19 15,900 3.52
12/1/00 3.06 14,300 3.50
12/4/00 2.94 14,800 3.48
12/5/00 3.00 85,000 3.46
12/6/00 2.88 6,300 3.43
12/7/00 3.00 6,600 3.41
12/8/00 3.25 38,800 3.39
12/11/00 3.38 15,900 3.37
12/12/00 3.00 33,900 3.35
12/13/00 3.00 3,900 3.33
12/14/00 3.00 23,600 3.31
12/15/00 3.13 4,100 3.30
12/18/00 3.19 29,300 3.28
12/19/00 3.19 9,800 3.28
12/20/00 3.13 12,300 3.26
12/21/00 3.06 8,500 3.25
12/22/00 3.06 19,700 3.23
12/26/00 3.13 58,200 3.22
12/27/00 3.25 22,900 3.21
12/28/00 3.06 17,500 3.19
12/29/00 3.06 68,600 3.18
1/2/01 3.06 3,400 3.17
1/3/01 3.13 21,600 3.16
1/4/01 3.19 1,800 3.15
1/5/01 3.25 9,400 3.15
1/8/01 3.25 3,400 3.14
1/9/01 3.25 11,600 3.14
1/10/01 3.44 15,600 3.14
1/11/01 3.44 1,100 3.14
1/12/01 3.44 7,500 3.14
1/16/01 3.50 8,900 3.15
1/17/01 3.38 14,100 3.15
1/18/01 3.25 18,000 3.16
1/19/01 3.63 27,900 3.17
1/22/01 3.69 8,800 3.18
1/23/01 3.75 7,000 3.19
1/24/01 3.75 200 3.21
1/25/01 3.81 5,100 3.22
1/26/01 4.06 4,900 3.23
1/29/01 4.35 18,500 3.26
1/30/01 4.74 37,300 3.29
1/31/01 4.76 9,500 3.31
2/1/01 4.68 1,800 3.34
2/2/01 4.75 2,900 3.37
2/5/01 4.75 3,600 3.39
2/6/01 4.52 11,400 3.42
2/7/01 4.50 4,200 3.44
2/8/01 4.65 8,100 3.46
2/9/01 4.50 5,200 3.48
2/12/01 4.30 10,000 3.50
2/13/01 4.10 4,400 3.52
2/14/01 4.10 400 3.54
2/15/01 4.05 2,700 3.56
2/16/01 3.68 24,400 3.56
2/20/01 3.70 4,200 3.56
2/21/01 3.67 500 3.56
2/22/01 3.64 3,000 3.57
2/23/01 3.70 100 3.58
2/26/01 3.70 2,600 3.59
2/27/01 3.70 2,400 3.60
2/28/01 3.70 600 3.60
3/1/01 3.75 8,100 3.62
3/2/01 3.70 3,400 3.63
3/5/01 3.70 200 3.64
3/6/01 3.79 1,600 3.66
3/7/01 3.80 2,000 3.67
3/8/01 3.78 1,000 3.68
3/9/01 3.83 0 3.68
3/12/01 3.80 1,700 3.70
3/13/01 3.90 4,300 3.71
3/14/01 3.90 1,300 3.73
3/15/01 3.90 6,000 3.74
3/16/01 3.85 1,400 3.75
3/19/01 3.85 200 3.76
3/20/01 3.85 100 3.78
3/21/01 3.85 200 3.79
3/22/01 3.75 4,000 3.80
3/23/01 3.75 2,300 3.81
3/26/01 3.70 3,500 3.82
3/27/01 3.74 2,000 3.83
3/28/01 3.90 4,600 3.84
3/29/01 3.80 1,400 3.86
3/30/01 4.00 6,200 3.87
4/2/01 3.90 1,600 3.88
4/3/01 4.00 14,600 3.89
4/4/01 4.00 2,700 3.91
4/5/01 3.85 1,700 3.92
4/6/01 3.98 7,000 3.93
4/9/01 4.00 25,500 3.94
4/10/01 4.10 48,200 3.95
4/11/01 4.03 300 3.95
4/12/01 3.94 1,600 3.96
4/16/01 4.02 800 3.98
4/17/01 3.91 500 3.98
4/18/01 3.90 9,200 3.99
4/19/01 3.90 3,100 3.99

---------------------------
35 JANNEY MONTGOMERY SCOTT
===========================

Relative Recent Stock Performance - Last Six Months
- --------------------------------------------------------------------------------

INDEXED PRICES
Oct 19, 2000 - Apr 19, 2001

[LINE GRAPH]

DATE SDP S&P500 PEER GROUP

10/19/00 100.00 100.00 100.00
10/20/00 94.12 100.59 99.17
10/23/00 94.12 100.51 99.19
10/24/00 94.12 100.67 100.01
10/25/00 92.16 98.28 99.04
10/26/00 94.12 98.25 99.78
10/27/00 94.12 99.34 99.43
10/30/00 98.04 100.71 101.68
10/31/00 94.12 102.93 105.90
11/1/00 94.12 102.34 104.77
11/2/00 98.04 102.85 104.54
11/3/00 100.00 102.73 104.62
11/6/00 94.12 103.13 105.64
11/7/00 98.04 103.10 104.96
11/8/00 96.08 101.48 104.80
11/9/00 103.92 100.82 103.53
11/10/00 101.96 98.36 97.96
11/13/00 98.04 97.30 98.59
11/14/00 98.04 99.58 98.85
11/15/00 96.08 100.08 99.41
11/16/00 94.12 98.82 98.43
11/17/00 98.04 98.49 99.46
11/20/00 113.73 96.68 97.46
11/21/00 111.76 97.02 96.48
11/22/00 109.80 95.22 95.57
11/24/00 105.88 96.62 97.52
11/27/00 96.08 97.13 98.52
11/28/00 98.04 96.21 96.45
11/29/00 98.04 96.63 97.09
11/30/00 100.00 94.69 96.03
12/1/00 96.08 94.71 97.64
12/4/00 92.16 95.41 100.42
12/5/00 94.12 99.12 100.75
12/6/00 90.20 97.31 99.54
12/7/00 94.12 96.74 99.90
12/8/00 101.96 98.64 100.76
12/11/00 105.88 99.38 102.48
12/12/00 94.12 98.73 105.13
12/13/00 94.12 97.93 105.21
12/14/00 94.12 96.56 105.18
12/15/00 98.04 94.48 104.69
12/18/00 100.00 95.25 107.03
12/19/00 100.00 94.01 110.44
12/20/00 98.04 91.07 109.65
12/21/00 96.08 91.80 114.71
12/22/00 96.08 94.04 118.86
12/26/00 98.04 94.70 119.58
12/27/00 101.96 95.69 124.35
12/28/00 96.08 96.07 124.21
12/29/00 96.08 95.07 124.28
1/2/01 96.08 92.40 124.80
1/3/01 98.04 97.03 127.47
1/4/01 100.00 96.01 128.30
1/5/01 101.96 93.49 125.69
1/8/01 101.96 93.31 125.52
1/9/01 101.96 93.67 126.34
1/10/01 107.84 94.56 125.10
1/11/01 107.84 95.54 123.98
1/12/01 107.84 94.93 124.76
1/16/01 109.80 95.53 123.69
1/17/01 105.88 95.73 123.45
1/18/01 101.96 97.06 121.39
1/19/01 113.73 96.67 121.82
1/22/01 115.69 96.70 121.45
1/23/01 117.65 97.96 119.69
1/24/01 117.65 98.24 120.12
1/25/01 119.61 97.75 119.96
1/26/01 127.45 97.57 118.97
1/29/01 136.47 98.23 118.29
1/30/01 148.71 98.92 119.35
1/31/01 149.33 98.36 120.91
2/1/01 146.82 98.90 120.43
2/2/01 149.02 97.17 120.46
2/5/01 149.02 97.52 121.37
2/6/01 141.80 97.37 122.75
2/7/01 141.18 96.55 125.04
2/8/01 145.88 95.95 125.55
2/9/01 141.18 94.67 125.11
2/12/01 134.90 95.79 126.31
2/13/01 128.63 94.96 127.56
2/14/01 128.63 94.76 127.19
2/15/01 127.06 95.52 128.59
2/16/01 115.45 93.72 128.75
2/20/01 116.08 92.09 131.84
2/21/01 115.14 90.39 132.06
2/22/01 114.20 90.21 129.72
2/23/01 116.08 89.71 127.55
2/26/01 116.08 91.28 129.44
2/27/01 116.08 90.58 128.65
2/28/01 116.08 89.28 127.68
3/1/01 117.65 89.38 127.81
3/2/01 116.08 88.87 128.75
3/5/01 116.08 89.39 129.67
3/6/01 118.90 90.28 129.67
3/7/01 119.22 90.86 129.21
3/8/01 118.59 91.07 129.58
3/9/01 120.00 88.81 128.04
3/12/01 119.22 84.98 126.46
3/13/01 122.35 86.24 125.91
3/14/01 122.35 84.01 122.46
3/15/01 122.35 84.50 123.87
3/16/01 120.78 82.85 120.90
3/19/01 120.78 84.31 122.59
3/20/01 120.78 82.28 122.09
3/21/01 120.78 80.80 118.59
3/22/01 117.65 80.47 117.86
3/23/01 117.65 82.08 116.82
3/26/01 116.08 83.00 121.17
3/27/01 117.33 85.12 122.27
3/28/01 122.35 83.04 122.79
3/29/01 119.22 82.66 121.35
3/30/01 125.49 83.55 122.84
4/2/01 122.35 82.51 123.30
4/3/01 125.49 79.67 120.32
4/4/01 125.49 79.44 123.02
4/5/01 120.78 82.91 127.16
4/6/01 124.86 81.25 126.04
4/9/01 125.49 81.91 127.44
4/10/01 128.63 84.13 129.86
4/11/01 126.43 83.95 127.15
4/12/01 123.61 85.22 128.71
4/16/01 126.12 84.94 130.01
4/17/01 122.67 85.82 130.04
4/18/01 122.35 89.16 133.83
4/19/01 122.35 90.27 132.05

---------------------------
36 JANNEY MONTGOMERY SCOTT
===========================

- --------------------------------------------------------------------------------

STOCK PREMIUM ANALYSIS

---------------------------
JANNEY MONTGOMERY SCOTT
===========================

Stock Premium Analysis
- --------------------------------------------------------------------------------

- - In order to compare Allied's offer price of $10.25 to comparable
transactions, purchase price premiums for transactions with the following
characteristics were analyzed:

- The target company was a publicly traded entity

- The transaction was completed within the last six months

- The target company had a market capitalization between $50
million and $200 million.

- - 27 transactions were found, and the average purchase price premium four
weeks prior to announcement was approximately 56%. The chart on the
following page illustrates the number of transactions that fell within
various premium ranges.

---------------------------
38 JANNEY MONTGOMERY SCOTT
===========================

Stock Premium Analysis
Market Capitalization Between $50 - $200 Million
- --------------------------------------------------------------------------------

HISTOGRAM FOR PURCHASE PREMIUMS FOUR WEEKS PRIOR TO ANNOUNCEMENT

[BAR CHART]

PURCHASE PREMIUM NUMBER OF ACQUISITIONS

<10% 6
10 to 25% 4
25 to 50% 3
50 to 75% 8
75 to 100% 2
>100% 4

---------------------------
39 JANNEY MONTGOMERY SCOTT
===========================

Stock Performance Summary
- --------------------------------------------------------------------------------

- - Of the 27 transactions analyzed in the Stock Premium Analysis, eight of the
target companies had a market capitalization under $100 million. For those
eight transactions, the average purchase price premium was 48%.

- - The proposed purchase price per share of $10.25 represents a 163% premium
over SunSource's closing price of $3.90 on April 18th, and a 188% premium
over SunSource's average closing price over the past six months of $3.56.

- - The stock price performance of both SunSource and its peer group have been
trending downward over the past year, a phenomenon that typically does not
warrant large purchase price premiums.

---------------------------
40 JANNEY MONTGOMERY SCOTT
===========================

Stock Price Premium Analysis
- --------------------------------------------------------------------------------

SUNSOURCE, INC.
====================================================================================================================
M&A Premium Analysis for the last six months for Public Target Companies w/ a Market Cap between $50-200 million.
- --------------------------------------------------------------------------------------------------------------------

TRANSACTION
VALUE ENTERPRISE
ANN DATE TARGET FULL NAME TARGET BUSINESS DESCRIPTION ACQUIROR FULL NAME (MM) VALUE (MM)
- --------------------------------------------------------------------------------------------------------------------

22 Feb 2001 ClinTrials Research, Global contract medical Inveresk Plc / Indigo $110.4 $110.4
Inc. research organization. Acquisition Corp.

07 Feb 2001 Labtec, Inc. (NEW) Develops high-technology Logitech International 109.3 109.3
peripherals and accessories. S.A.

11 Dec 2000 Bay Bancshares, Inc. Holding company for Bayshore SouthTrust Corp. 55.1 55.1
National Bank.

14 Dec 2000 Eldorado Bancshares, Holding company. Zions Bancorporation 169.7 169.7
Inc.

14 Feb 2001 SierraCities.com, Provides comprehensive online American Express Co. 108.2 108.2
Inc. financing.

18 Jan 2001 Texoil, Inc. Acquires, develops oil, gas Ocean Energy, Inc. 124.9 124.9
reserves.

22 Jan 2001 Guest Supply, Inc. Supplies personal care SYSCO Corporation 231.5 231.5
amenities.

06 Sep 2000 FirstSpartan Holding company for First BB&T Corp. 137.5 137.5
Financial Corp. Federal Bank.

20 Sep 2000 WesterFed Financial Holding company for Western Glacier Bancorp Inc. 95.1 95.1
Corp. Security Bank.

14 Nov 2000 Enhance Financial Reinsures financial guarantees Radian Group Inc. 532.1 532.1
Services Group of municipal and asset-backed
debt obligations.

07 Nov 2000 ShowCase Provides fully integrated, SPSS Inc. 73.0 55.8
Corporation end-to-end, business
intelligence solutions for
IBM AS/400 customers.

03 Oct 2000 Robinson Nugent, Designs, manufactures, and 3M 121.5 121.5
Inc. markets electronic connectors,
integrated circuit sockets,
and cable assemblies.

26 Oct 2000 Corsair Provides software solutions. Lightbridge, Inc. 132.1 132.1
Communications,
Inc.

03 OCt 2000 CapRock Owns and operates a scalable McLeodUSA Inc. 556.9 556.9
Communications long-haul fiber network.
Corp.

11 Oct 2000 Cerprobe Corp. Designs, manufactures and Kulicke and Soffa 179.9 179.9
markets products for the Industries, Inc
high-performance testing of
integrated circuits and other
microelectronics components.

SUNSOURCE, INC.
====================================================================================================================
M&A Premium Analysis for the last six months for Public Target Companies w/ a Market Cap between $50-200 million.
- --------------------------------------------------------------------------------------------------------------------
TARGET PRICE PRIOR
TO ANNOUNCEMENT
-------------------------
ANN DATE TARGET FULL NAME TARGET BUSINESS DESCRIPTION ACQUIROR FULL NAME 1 MONTH 1 WEEK 1 DAY
- --------------------------------------------------------------------------------------------------------------------

22 Feb 2001 ClinTrials Research, Global contract medical Inveresk Plc / Indigo $ 6.00 $ 6.13 $ 5.75
Inc. research organization. Acquisition Corp.

07 Feb 2001 Labtec, Inc. (NEW) Develops high-technology Logitech International 6.22 9.88 11.88
peripherals and accessories. S.A.

11 Dec 2000 Bay Bancshares, Inc. Holding company for Bayshore SouthTrust Corp. 23.00 22.00 22.00
National Bank.

14 Dec 2000 Eldorado Bancshares, Holding company. Zions Bancorporation 7.88 8.38 8.88
Inc.

14 Feb 2001 SierraCities.com, Provides comprehensive online American Express Co. 1.75 3.75 4.06
Inc. financing.

18 Jan 2001 Texoil, Inc. Acquires, develops oil, gas Ocean Energy, Inc. 6.81 7.63 7.56
reserves.

22 Jan 2001 Guest Supply, Inc. Supplies personal care SYSCO Corporation 16.38 17.38 18.69
amenities.

06 Sep 2000 FirstSpartan Holding company for First BB&T Corp. 18.75 20.06 20.38
Financial Corp. Federal Bank.

20 Sep 2000 WesterFed Financial Holding company for Western Glacier Bancorp Inc. 15.63 15.75 15.75
Corp. Security Bank.

14 Nov 2000 Enhance Financial Reinsures financial guarantees Radian Group Inc. 12.50 13.56 13.81
Services Group of municipal and asset-backed
debt obligations.

07 Nov 2000 ShowCase Provides fully integrated, SPSS Inc. 6.75 5.00 5.56
Corporation end-to-end, business
intelligence solutions for
IBM AS/400 customers.

03 Oct 2000 Robinson Nugent, Designs, manufactures, and 3M 16.81 15.69 16.63
Inc. markets electronic connectors,
integrated circuit sockets,
and cable assemblies.

26 Oct 2000 Corsair Provides software solutions. Lightbridge, Inc. 9.00 6.91 7.38
Communications,
Inc.

03 OCt 2000 CapRock Owns and operates a scalable McLeodUSA Inc. 5.75 5.53 5.06
Communications long-haul fiber network.
Corp.

11 Oct 2000 Cerprobe Corp. Designs, manufactures and Kulicke and Soffa 14.06 14.00 12.75
markets products for the Industries, Inc
high-performance testing of
integrated circuits and other
microelectronics components.

SUNSOURCE, INC.
====================================================================================================================
M&A Premium Analysis for the last six months for Public Target Companies w/ a Market Cap between $50-200 million.
- --------------------------------------------------------------------------------------------------------------------
PREMIUM (%) PRIOR
TO ANNOUNCEMENT
-------------------------
ANN DATE TARGET FULL NAME TARGET BUSINESS DESCRIPTION ACQUIROR FULL NAME 1 DAY 1 WEEK 1 MONTH
- --------------------------------------------------------------------------------------------------------------------

22 Feb 2001 ClinTrials Research, Global contract medical Inveresk Plc / Indigo 4.3 (2.0) -
Inc. research organization. Acquisition Corp.

07 Feb 2001 Labtec, Inc. (NEW) Develops high-technology Logitech International 42.7 71.6 172.5
peripherals and accessories. S.A.

11 Dec 2000 Bay Bancshares, Inc. Holding company for Bayshore SouthTrust Corp. 20.1 20.1 14.9
National Bank.

14 Dec 2000 Eldorado Bancshares, Holding company. Zions Bancorporation 35.0 43.0 52.1
Inc.

14 Feb 2001 SierraCities.com, Provides comprehensive online American Express Co. 39.8 51.5 224.6
Inc. financing.

18 Jan 2001 Texoil, Inc. Acquires, develops oil, gas Ocean Energy, Inc. 9.1 8.2 21.1
reserves.

22 Jan 2001 Guest Supply, Inc. Supplies personal care SYSCO Corporation 39.1 49.6 58.8
amenities.

06 Sep 2000 FirstSpartan Holding company for First BB&T Corp. 80.2 83.0 95.8
Financial Corp. Federal Bank.

20 Sep 2000 WesterFed Financial Holding company for Western Glacier Bancorp Inc. 49.1 49.1 50.3
Corp. Security Bank.

14 Nov 2000 Enhance Financial Reinsures financial guarantees Radian Group Inc. (0.2) 1.6 10.2
Services Group of municipal and asset-backed
debt obligations.

07 Nov 2000 ShowCase Provides fully integrated, SPSS Inc. 22.1 35.8 0.6
Corporation end-to-end, business
intelligence solutions for
IBM AS/400 customers.

03 Oct 2000 Robinson Nugent, Designs, manufactures, and 3M 31.1 39.0 29.7
Inc. markets electronic connectors,
integrated circuit sockets,
and cable assemblies.

26 Oct 2000 Corsair Provides software solutions. Lightbridge, Inc. 3.3 10.4 (15.3)
Communications,
Inc.

03 OCt 2000 CapRock Owns and operates a scalable McLeodUSA Inc. 13.4 3.8 (0.2)
Communications long-haul fiber network.
Corp.

11 Oct 2000 Cerprobe Corp. Designs, manufactures and Kulicke and Soffa 56.9 42.9 42.2
markets products for the Industries, Inc
high-performance testing of
integrated circuits and other
microelectronics components.

---------------------------
41 JANNEY MONTGOMERY SCOTT
===========================

Stock Price Premium Analysis
- ----------------------------------------------------------------------------

SunSource, Inc.
===================================================================================================================================
M&A Premium Analysis for the last six months for Public Target Companies w/ a Market Cap between $50-200 million.
- -----------------------------------------------------------------------------------------------------------------------------------

TRANSACTION ENTERPRISE
ANN DATE TARGET FULL NAME TARGET BUSINESS DESCRIPTION ACQUIROR FULL NAME VALUE (MM) VALUE (MM)
- -----------------------------------------------------------------------------------------------------------------------------------

02 Oct 2000 Crescendo Develops human pharmaceutical ALZA Corporation 100.0 100.0
Pharmaceuticals products for commercialization,
Corp. through licensing to ALZA
Corporation.

04 Oct 2000 Hello Direct Inc. Develops and markets telephony GN Store Nord A/S 89.5 89.5
products and equipment interface
solutions to business end users.

11 Aug 2000 BI, Inc. Designs, manufactures, assembles, Investor Group 85.6 85.6
sells & supports electronic (Led by Kohlberg &
monitoring house arrest programs. Co. LLC)

26 Apr 2000 HMT Technology Corp. Supplies high-performance thin Komag Inc. 141.5 141.5
film disks for high-end, high-end
capacity, and removable hard disk
drives.

18 Dec 2000 Donna Karan Manufactures, retails men's, LVMH Moet Hennessy 238.3 238.3
International, Inc. women's clothing. Louis Vuitton

27 Dec 2000 Drovers Bancshares Bank holding company. Fulton Financial Corp 144.8 144.8
Corporation

27 Nov 2000 Spacelabs Medical, Manufactures, markets healthcare Cardiac Science, Inc. 143.2 143.2
Inc. instruments.

13 Nov 2000 MicroTouch Supplies touch and pen sensitive 3M 136.3 136.3
Systems, Inc. input systems.

12 Oct 2000 Lodgian, Inc. Owns or manages numerous hotels Goldman Sachs Group Inc. 126.6 126.6
in the United States, Canada,
and Europe.

29 Nov 2000 First Liberty Bank Bank holding company. Community Bank System, 87.0 87.0
Corp. Inc.

22 Dec 2000 Southern Mineral Explores oil and gas PetroCorp, Inc. 57.6 57.6
Corp. properties.

21 Sep 2000 Ridgewood Financial A holding company for Ridgewood Boiling Springs Bancorp 57.2 48.5
Inc. Savings Bank of New Jersey.

SunSource, Inc.
===================================================================================================================================
M&A Premium Analysis for the last six months for Public Target Companies w/ a Market Cap between $50-200 million.
- -----------------------------------------------------------------------------------------------------------------------------------
TARGET PRICE PRIOR
TO ANNOUNCEMENT
--------------------------
ANN DATE TARGET FULL NAME TARGET BUSINESS DESCRIPTION ACQUIROR FULL NAME 1 MONTH 1 WEEK 1 DAY
- -----------------------------------------------------------------------------------------------------------------------------------

02 Oct 2000 Crescendo Develops human pharmaceutical ALZA Corporation 20.75 20.06 20.50
Pharmaceuticals products for commercialization,
Corp. through licensing to ALZA
Corporation.

04 Oct 2000 Hello Direct Inc. Develops and markets telephony GN Store Nord A/S 10.63 9.97 11.13
products and equipment interface
solutions to business end users.

11 Aug 2000 BI, Inc. Designs, manufactures, assembles, Investor Group 5.06 4.00 4.63
sells & supports electronic (Led by Kohlberg &
monitoring house arrest programs. Co. LLC)

26 Apr 2000 HMT Technology Corp. Supplies high-performance thin Komag Inc. 3.75 2.28 1.88
film disks for high-end, high-end
capacity, and removable hard disk
drives.

18 Dec 2000 Donna Karan Manufactures, retails men's, LVMH Moet Hennessy 5.63 4.81 4.88
International, Inc. women's clothing. Louis Vuitton

27 Dec 2000 Didvers Bancshares Bank holding company. Fulton Financial Corp 14.75 13.25 19.75
Corporation

27 Nov 2000 Spacelabs Medical, Manufactures, markets healthcare Cardiac Science, Inc. 9.94 11.94 13.25
Inc. instruments.

13 Nov 2000 MicroTouch Supplies touch and pen sensitive 3M 7.00 13.50 17.38
Systems, Inc. input systems.

12 Oct 2000 Lodgian, Inc. Owns or manages numerous hotels Goldman Sachs Group Inc. 2.69 2.81 2.88
in the United States, Canada,
and Europe.

29 Nov 2000 First Liberty Bank Bank holding company. Community Bank System, 11.00 13.25 13.25
Corp. Inc.

22 Dec 2000 Southern Mineral Explores oil and gas PetroCorp, Inc. 3.38 3.25 3.13
Corp. properties.

21 Sep 2000 Ridgewood Financial A holding company for Ridgewood Boiling Springs Bancorp 7.50 14.44 14.44
Inc. Savings Bank of New Jersey.

SunSource, Inc.
===================================================================================================================================
M&A Premium Analysis for the last six months for Public Target Companies w/ a Market Cap between $50-200 million.
- -----------------------------------------------------------------------------------------------------------------------------------
PREMIUM (%) PRIOR
TO ANNOUNCEMENT
--------------------------
ANN DATE TARGET FULL NAME TARGET BUSINESS DESCRIPTION ACQUIROR FULL NAME 1 DAY 1 WEEK 1 MONTH
- -----------------------------------------------------------------------------------------------------------------------------------

02 Oct 2000 Crescendo Develops human pharmaceutical ALZA Corporation 0.9 3.1 (0.3)
Pharmaceuticals products for commercialization,
Corp. through licensing to ALZA
Corporation.

04 Oct 2000 Hello Direct Inc. Develops and markets telephony GN Store Nord A/S 47.4 64.5 54.4
products and equipment interface
solutions to business end users.

11 Aug 2000 BI, Inc. Designs, manufactures, assembles, Investor Group 78.4 106.3 63.0
sells & supports electronic (Led by Kohlberg &
monitoring house arrest programs. Co. LLC)

26 Apr 2000 HMT Technology Corp. Supplies high-performance thin Komag Inc. 63.7 34.6 (18.1)
film disks for high-end, high-end
capacity, and removable hard disk
drives.

18 Dec 2000 Donna Karan Manufactures, retails men's, LVMH Moet Hennessy 74.4 76.6 51.1
International, Inc. women's clothing. Louis Vuitton

27 Dec 2000 Didvers Bancshares Bank holding company. Fulton Financial Corp 44.0 114.6 92.8
Corporation

27 Nov 2000 Spacelabs Medical, Manufactures, markets healthcare Cardiac Science, Inc. 13.2 25.7 50.9
Inc. instruments.

13 Nov 2000 MicroTouch Supplies touch and pen sensitive 3M 20.9 55.6 200.0
Systems, Inc. input systems.

12 Oct 2000 Lodgian, Inc. Owns or manages numerous hotels Goldman Sachs Group Inc. 56.5 60.0 67.4
in the United States, Canada,
and Europe.

29 Nov 2000 First Liberty Bank Bank holding company. Community Bank System, 2.7 2.7 23.7
Corp. Inc.

22 Dec 2000 Southern Mineral Explores oil and gas PetroCorp, Inc. 50.7 44.9 39.6
Corp. properties.

21 Sep 2000 Ridgewood Financial A holding company for Ridgewood Boiling Springs Bancorp 24.7 24.7 140.0
Inc. Savings Bank of New Jersey.

===================================================================================================================================

Average 153.5 152.6 10.0 10.6 11.2 34.2 41.5 56.4
Median 124.9 124.9 7.9 10.0 11.9 35.0 42.9 50.3
Low 55.1 48.5 1.8 2.3 1.9 (0.2) (2.0) (18.1)
High 556.9 556.9 23.0 22.0 22.0 80.2 114.6 224.6
- -----------------------------------------------------------------------------------------------------------------------------------

---------------------------
JANNEY MONTGOMERY SCOTT
===========================

- --------------------------------------------------------------------------------

OVERVIEW OF ALLIED CAPITAL CORPORATION

---------------------------
JANNEY MONTGOMERY SCOTT
===========================

Allied Capital Corporation Overview
- --------------------------------------------------------------------------------

- - Allied Capital Corporation ("Allied") is a Washington D.C. based company
that was founded in 1958 and has been public since 1960 (NASDAQ: ALLC.) Its
market capitalization is approximately $1.7 billion; the stock currently
trades at a P/E ratio of just over 10 times.

- - Allied is a business development company that provides private investment
capital to private and public companies in a variety of industries
throughout the U.S. Investment activity is focused in two areas: private
finance and commercial real estate finance.

- - Over 70% of Allied's investments are in the private finance sector, and are
generally used to fund growth, buyouts, acquisitions, recapitalizations,
and bridge financings. Allied's investments typically range in size from $5
million to $30 million, and are generally structured as unsecured,
subordinated loans with equity features such as warrants or options. Allied
also maintains a small portfolio of commercial real estate loans.

- - Allied has recently experienced strong growth driven by strong
originations, and management expects the growth to continue in 2001. Also,
as Allied continues to shift its mix of assets toward higher-yielding
mezzanine investments, higher operating returns are expected.

---------------------------
44 JANNEY MONTGOMERY SCOTT
===========================

ALLC - Income Statement Summary
- --------------------------------------------------------------------------------

FOR THE FISCAL YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
1997 (1) 1998 (2) 1999 2000
-------- -------- -------- --------

Interest and Dividend Income $86,882 89.2% $80,281 87.3% $121,112 85.8% $182,307 86.2%
Premiums from Loan Dispositions 7,277 7.5% 5,949 6.5% 14,284 10.1% 16,138 7.6%
Investment Advisory Fees and Other Income 3,246 3.3% 5,696 6.2% 5,744 4.1% 13,144 6.2%
------- ------- -------- --------
Total Interest & Related Portfolio Income 97,405 100.0% 91,926 100.0% 141,140 100.0% 211,589 100.0%
Interest Expense 26,952 27.7% 20,694 22.5% 34,860 24.7% 57,412 27.1%
Employee Expense 10,258 10.5% 11,829 12.9% 16,136 11.4% 19,842 9.4%
Administrative Expense 8,970 9.2% 11,921 13.0% 12,350 8.8% 15,435 7.3%
------- ------- -------- --------
Total Operating Expenses 46,180 47.4% 44,444 48.3% 63,346 44.9% 92,689 43.8%
Formula and Cut-off Awards - 0.0% 7,049 7.7% 6,753 4.8% 6,183 2.9%
------- ------- -------- --------
Operating Income Before Gains 51,225 52.6% 40,433 44.0% 71,041 50.3% 112,717 53.3%
Net Realized Gains 10,704 11.0% 22,541 24.5% 25,391 18.0% 15,523 7.3%
Net Unrealized Gains 7,209 7.4% 1,079 1.2% 2,138 1.5% 14,861 7.0%
------- ------- -------- --------
Total Net Gains 17,913 18.4% 23,620 25.7% 27,529 19.5% 30,384 14.4%
------- ------- -------- --------
Net Income before Taxes 69,138 71.0% 64,053 69.7% 98,570 69.8% 143,101 67.6%
Income tax expense/(benefit) 1,444 1.5% 787 0.9% - 0.0% - 0.0%
------- ------- -------- --------
Net Income $67,694 69.5% $63,266 68.8% $ 98,570 69.8% $143,101 67.6%
======= ======= ======== ========
Earnings Per Share - Basic $ 1.38 $ 1.22 $ 1.65 $ 1.96
Earnings Per Share - Diluted $ 1.37 $ 1.22 $ 1.64 $ 1.95

[REVENUES BAR CHART] [NET INCOME BAR CHART]

YEAR REVENUES YEAR NET INCOME

1997 $ 97,405 1997 $ 67,694
1998 $ 91,926 1998 $ 63,266
1999 $141,140 1999 $ 98,570
2000 $211,589 2000 $143,101

(1) 1997 results have been adjusted to exclude $5.2 million in merger related
expenses

(2) 1998 results have been adjusted to exclude a $14.3 million in post-merger
gain on securitization of commercial mortgage loans

---------------------------
45 JANNEY MONTGOMERY SCOTT
===========================

ALLC - Quarterly Results
- -------------------------------------------------------------------------------

FOR THE QUARTER ENDED
--------------------------------------------------------------------------------------
12/31/99 3/31/00 6/30/00 9/30/00 12/31/00
-------- ------- ------- ------- --------

Interest and Dividend Income $35,396 83.7% $38,728 88.2% $42,986 86.0% $48,054 85.8% $51,762 83.8%
Premiums from Loan Dispositions 5,252 12.4% 3,289 7.5% 4,554 9.1% 2,909 5.2% 5,386 8.7%
Investment Advisory Fees and Other Income 1,630 3.9% 1,880 4.3% 2,425 4.9% 5,029 9.0% 4,587 7.4%
------- ------- ------- ------- -------
Total Interest & Related Portfolio Income 42,278 100.0% 43,897 100.0% 49,965 100.0% 55,992 100.0% 61,735 100.0%
Interest Expense 10,687 25.3% 12,311 28.0% 14,280 28.6% 15,054 26.9% 15,767 25.5%
Employee Expense 4,833 11.4% 4,569 10.4% 5,191 10.4% 4,949 8.8% 5,133 8.3%
Administrative Expense 3,874 9.2% 2,753 6.3% 4,082 8.2% 3,876 6.9% 4,724 7.7%
------- ------- ------- ------- -------
Total Operating Expenses 19,394 45.9% 19,633 44.7% 23,553 47.1% 23,879 42.6% 25,624 41.5%
Formula and Cut-off Awards 1,565 3.7% 1,691 3.9% 1,712 3.4% 1,394 2.5% 1,386 2.2%
------- ------- ------- ------- -------
Operating Income Before Gains 21,319 50.4% 22,573 51.4% 24,700 49.4% 30,719 54.9% 34,725 56.2%
Net Realized Gains 8,943 21.2% 2,176 5.0% 12,865 25.7% 8,054 14.4% (7,572) -12.3%
Net Unrealized Gains 663 1.6% 4,832 11.0% (2,775) -5.6% (2,324) -4.2% 15,128 24.5%
------- ------- ------- ------- -------
Total Net Gains 9,606 22.7% 7,008 16.0% 10,090 20.2% 5,730 10.2% 7,556 12.2%
------- ------- ------- ------- -------
Net Income before Taxes 30,925 73.1% 29,581 67.4% 34,790 69.6% 36,449 65.1% 42,281 68.5%
Income tax expense/(benefit) - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
------- ------- ------- ------- -------
Net Income $30,925 73.1% $29,581 67.4% $34,790 69.6% $36,449 65.1% $42,281 68.5%
======= ======= ======= ======= =======
Earnings Per Share - Basic $ 0.49 0.45 $ 0.50 $ 0.48 $ 0.52
Earnings Per Share - Diluted $ 0.49 0.45 $ 0.50 $ 0.48 $ 0.52

[REVENUES BAR CHART] [NET INCOME BAR CHART]

QUARTER REVENUES QUARTER NET INCOME

Dec-99 $ 42,278 Dec-99 $ 30,925
Mar-00 $ 43,897 Mar-00 $ 29,581
Jun-00 $ 49,965 Jun-00 $ 34,790
Sep-00 $ 55,992 Sep-00 $ 36,449
Dec-00 $ 61,735 Dec-00 $ 42,281

---------------------------
46 JANNEY MONTGOMERY SCOTT
===========================

ALLC - Balance Sheet Data
- --------------------------------------------------------------------------------

12/31/98 12/31/99 12/31/00
-------- -------- --------

Portfolio at value:
Private Finance $339,163 $ 647,040 $1,282,467
Commercial Real Estate Finance 346,860 520,029 505,534
Small Business Finance 114,251 61,428 -
-------- ---------- ----------
Total Portfolio Value 800,274 1,228,497 1,788,001

Cash and Equivalents 25,075 18,155 2,449
Other Assets 30,730 43,386 63,367
-------- ---------- ----------
Total Assets $856,079 $1,290,038 $1,853,817
======== ========== ==========

Notes Payable and Debentures 239,350 487,350 704,648
Revolving Credit Facilities 95,000 105,500 82,000
Accounts Payable and Other Liabilities 29,612 22,675 30,477
-------- ---------- ----------
Total Liabilities 363,962 615,525 817,125

Preferred Stock 7,000 7,000 7,000
Shareholders' Equity 485,117 667,513 1,029,692
-------- ---------- ----------
Total Liabilities and Equity $856,079 $1,290,038 $1,853,817
======== ========== ==========

Debt/Equity 0.68 0.88 0.76
Debt/Total Capitalization 0.40 0.47 0.43
Return on Assets 7.4% 7.6% 7.7%

---------------------------
47 JANNEY MONTGOMERY SCOTT
===========================

ALLC - Stock Performance
- --------------------------------------------------------------------------------

ALLIED CAPITAL CORPORATION (ALLC)
Apr 16, 1999 - Apr 19, 2001

[LINE GRAPH]

DATE PRICE VOLUME

4/16/99 18.06 173,700
4/19/99 18.13 216,200
4/20/99 18.00 150,000
4/21/99 18.00 104,000
4/22/99 18.00 103,600
4/23/99 18.06 56,600
4/26/99 18.13 108,700
4/27/99 18.38 414,200
4/28/99 18.19 305,700
4/29/99 17.94 146,700
4/30/99 18.00 138,300
5/3/99 17.88 112,800
5/4/99 18.00 130,900
5/5/99 17.69 113,600
5/6/99 17.44 249,000
5/7/99 17.56 207,000
5/10/99 17.44 308,800
5/11/99 18.69 750,300
5/12/99 19.25 431,300
5/13/99 19.00 196,800
5/14/99 18.88 257,600
5/17/99 18.94 167,400
5/18/99 18.91 132,000
5/19/99 18.75 174,800
5/20/99 18.94 182,300
5/21/99 19.13 173,300
5/24/99 18.75 159,600
5/25/99 18.63 167,000
5/26/99 18.75 605,000
5/27/99 18.50 58,700
5/28/99 18.63 117,800
6/1/99 18.75 41,300
6/2/99 18.25 91,600
6/3/99 18.81 94,400
6/4/99 18.94 45,900
6/7/99 19.00 69,600
6/8/99 18.94 99,200
6/9/99 19.19 100,700
6/10/99 19.06 59,700
6/11/99 18.81 78,900
6/14/99 19.25 242,900
6/15/99 19.56 131,400
6/16/99 19.38 129,600
6/17/99 19.50 125,800
6/18/99 20.38 331,000
6/21/99 20.69 198,600
6/22/99 20.88 283,300
6/23/99 21.50 292,800
6/24/99 20.75 139,800
6/25/99 20.63 122,500
6/28/99 20.13 170,000
6/29/99 21.38 331,100
6/30/99 24.00 1,037,500
7/1/99 23.00 707,700
7/2/99 22.50 231,300
7/6/99 23.00 500,400
7/7/99 22.75 335,600
7/8/99 22.19 304,400
7/9/99 22.25 252,000
7/12/99 22.38 219,100
7/13/99 21.56 457,100
7/14/99 22.00 307,100
7/15/99 22.56 192,100
7/16/99 22.50 293,500
7/19/99 22.00 134,100
7/20/99 22.00 137,900
7/21/99 22.00 139,700
7/22/99 22.00 125,900
7/23/99 21.94 103,700
7/26/99 21.38 131,900
7/27/99 22.50 203,700
7/28/99 22.19 114,600
7/29/99 23.19 289,000
7/30/99 22.50 169,600
8/2/99 22.50 134,700
8/3/99 22.06 147,700
8/4/99 21.50 119,000
8/5/99 21.13 198,800
8/6/99 20.63 116,000
8/9/99 21.13 182,600
8/10/99 21.63 245,900
8/11/99 22.06 314,800
8/12/99 22.88 354,000
8/13/99 23.25 275,600
8/16/99 23.19 358,300
8/17/99 22.88 298,800
8/18/99 21.75 321,800
8/19/99 21.38 172,500
8/20/99 21.88 172,300
8/23/99 22.56 146,700
8/24/99 22.56 111,700
8/25/99 22.38 134,200
8/26/99 22.25 72,400
8/27/99 22.00 84,500
8/30/99 22.13 264,400
8/31/99 22.59 122,900
9/1/99 22.56 198,100
9/2/99 22.13 159,600
9/3/99 22.06 131,700
9/7/99 22.19 120,400
9/8/99 22.06 214,200
9/9/99 21.59 141,400
9/10/99 21.63 172,300
9/13/99 21.88 174,000
9/14/99 20.88 138,200
9/15/99 20.50 210,300
9/16/99 20.50 226,000
9/17/99 20.94 93,800
9/20/99 21.44 170,900
9/21/99 21.19 166,900
9/22/99 21.75 98,500
9/23/99 20.88 119,300
9/24/99 21.19 90,400
9/27/99 22.13 223,500
9/28/99 21.13 286,900
9/29/99 21.81 87,400
9/30/99 22.44 228,200
10/1/99 22.50 255,700
10/4/99 22.00 166,900
10/5/99 21.75 159,000
10/6/99 23.00 317,100
10/7/99 22.00 244,900
10/8/99 21.88 106,400
10/11/99 21.69 84,100
10/12/99 21.08 100,400
10/13/99 20.81 218,000
10/14/99 20.25 188,500
10/15/99 20.25 384,500
10/18/99 20.25 253,800
10/19/99 20.50 424,900
10/20/99 20.38 306,700
10/21/99 20.00 236,700
10/22/99 19.88 409,100
10/25/99 19.50 428,600
10/26/99 19.50 438,000
10/27/99 19.56 395,500
10/28/99 20.63 386,400
10/29/99 20.06 206,300
11/1/99 19.94 237,300
11/2/99 20.94 219,200
11/3/99 21.25 334,600
11/4/99 20.88 628,100
11/5/99 20.81 388,500
11/8/99 20.38 294,000
11/9/99 20.69 198,500
11/10/99 20.69 148,800
11/11/99 20.81 202,200
11/12/99 20.88 118,400
11/15/99 20.88 157,100
11/16/99 21.00 193,500
11/17/99 20.94 233,700
11/18/99 20.69 142,200
11/19/99 20.50 159,800
11/22/99 20.38 113,100
11/23/99 19.94 146,600
11/24/99 20.19 147,500
11/26/99 19.94 26,200
11/29/99 20.13 152,100
11/30/99 20.25 218,000
12/1/99 20.16 208,800
12/2/99 20.06 157,500
12/3/99 20.13 136,700
12/6/99 19.44 198,000
12/7/99 19.75 148,800
12/8/99 19.69 974,500
12/9/99 19.25 548,900
12/10/99 19.50 560,600
12/13/99 18.81 338,800
12/14/99 18.25 404,900
12/15/99 18.25 557,000
12/16/99 17.38 390,100
12/17/99 18.13 558,400
12/20/99 17.44 262,500
12/21/99 18.56 289,700
12/22/99 17.75 517,200
12/23/99 17.63 433,700
12/27/99 17.44 294,200
12/28/99 17.13 345,800
12/29/99 18.00 325,400
12/30/99 17.75 347,900
12/31/99 18.31 281,900
1/3/00 17.63 450,600
1/4/00 16.75 346,200
1/5/00 16.75 693,800
1/6/00 16.75 367,300
1/7/00 16.44 841,000
1/10/00 16.69 617,200
1/11/00 16.06 598,100
1/12/00 16.38 532,800
1/13/00 17.63 866,900
1/14/00 17.13 518,000
1/18/00 17.75 604,300
1/19/00 17.44 381,800
1/20/00 17.13 495,800
1/21/00 17.13 291,000
1/24/00 16.94 254,800
1/25/00 17.06 217,200
1/26/00 17.31 363,100
1/27/00 17.69 435,400
1/28/00 17.88 329,700
1/31/00 18.50 425,700
2/1/00 18.94 498,500
2/2/00 18.63 216,000
2/3/00 19.31 520,700
2/4/00 19.63 519,000
2/7/00 19.56 423,000
2/8/00 19.69 445,400
2/9/00 18.81 590,900
2/10/00 18.13 357,500
2/11/00 17.69 601,000
2/14/00 17.56 482,600
2/15/00 17.88 376,000
2/16/00 18.50 328,200
2/17/00 18.41 504,600
2/18/00 18.19 268,200
2/22/00 18.44 357,200
2/23/00 18.13 227,100
2/24/00 17.88 232,900
2/25/00 17.88 302,400
2/28/00 17.75 311,300
2/29/00 17.38 456,900
3/1/00 17.94 257,700
3/2/00 17.50 224,700
3/3/00 17.63 263,200
3/6/00 17.25 408,300
3/7/00 16.81 523,800
3/8/00 16.69 1,315,800
3/9/00 17.06 495,400
3/10/00 16.81 421,300
3/13/00 16.56 309,400
3/14/00 16.75 508,000
3/15/00 16.81 272,700
3/16/00 17.94 647,700
3/17/00 17.94 356,200
3/20/00 17.06 197,600
3/21/00 17.56 263,800
3/22/00 17.94 239,700
3/23/00 18.06 267,800
3/24/00 17.88 327,200
3/27/00 17.38 153,200
3/28/00 17.63 241,400
3/29/00 17.19 393,700
3/30/00 17.00 277,700
3/31/00 17.44 314,500
4/3/00 17.69 791,100
4/4/00 17.94 535,500
4/5/00 17.56 544,800
4/6/00 17.63 247,500
4/7/00 17.56 221,500
4/10/00 17.19 344,300
4/11/00 17.44 339,600
4/12/00 17.38 412,400
4/13/00 17.56 381,100
4/14/00 16.56 425,700
4/17/00 17.00 390,100
4/18/00 17.56 382,300
4/19/00 17.13 256,000
4/20/00 17.44 298,900
4/24/00 17.06 213,900
4/25/00 17.50 342,100
4/26/00 17.81 424,200
4/27/00 18.13 482,600
4/28/00 18.69 209,700
5/1/00 18.56 451,300
5/2/00 18.50 306,500
5/3/00 18.06 345,600
5/4/00 17.50 423,500
5/5/00 18.50 219,700
5/8/00 18.31 251,800
5/9/00 17.50 412,700
5/10/00 17.31 616,500
5/11/00 17.50 400,900
5/12/00 17.63 305,300
5/15/00 17.81 373,300
5/16/00 17.81 334,000
5/17/00 17.50 455,800
5/18/00 17.50 426,100
5/19/00 17.31 379,600
5/22/00 17.38 559,700
5/23/00 17.19 357,200
5/24/00 17.31 426,700
5/25/00 17.00 432,700
5/26/00 16.81 401,400
5/30/00 17.00 562,000
5/31/00 17.06 337,700
6/1/00 17.56 300,100
6/2/00 17.63 673,400
6/5/00 17.19 914,700
6/6/00 17.25 574,400
6/7/00 17.06 855,600
6/8/00 17.06 1,393,100
6/9/00 17.00 509,800
6/12/00 17.25 451,400
6/13/00 17.56 640,800
6/14/00 17.44 569,800
6/15/00 17.19 452,300
6/16/00 17.31 574,000
6/19/00 17.31 396,700
6/20/00 17.13 390,000
6/21/00 17.13 304,800
6/22/00 17.00 345,400
6/23/00 17.13 290,400
6/26/00 17.00 249,500
6/27/00 17.25 331,600
6/28/00 17.25 344,500
6/29/00 17.13 370,700
6/30/00 17.00 533,900
7/3/00 17.75 424,900
7/5/00 17.44 235,700
7/6/00 17.75 244,100
7/7/00 17.63 383,900
7/10/00 17.56 341,300
7/11/00 17.56 371,300
7/12/00 17.69 231,500
7/13/00 17.69 265,400
7/14/00 17.56 208,900
7/17/00 17.56 261,500
7/18/00 17.63 326,200
7/19/00 17.56 267,600
7/20/00 17.63 239,100
7/21/00 17.63 249,000
7/24/00 17.69 248,900
7/25/00 18.00 385,700
7/26/00 18.06 342,400
7/27/00 18.00 323,600
7/28/00 18.19 494,400
7/31/00 18.94 622,600
8/1/00 19.00 432,200
8/2/00 19.19 416,200
8/3/00 19.63 468,700
8/4/00 19.63 482,700
8/7/00 19.69 198,600
8/8/00 19.88 223,500
8/9/00 19.63 454,400
8/10/00 19.75 256,300
8/11/00 20.00 337,300
8/14/00 20.06 253,100
8/15/00 19.94 381,700
8/16/00 20.00 188,600
8/17/00 19.81 315,500
8/18/00 19.50 252,300
8/21/00 20.06 258,000
8/22/00 20.13 473,500
8/23/00 20.06 174,600
8/24/00 20.00 268,000
8/25/00 20.00 264,600
8/28/00 20.13 219,400
8/29/00 19.94 250,500
8/30/00 20.06 235,300
8/31/00 20.25 225,700
9/1/00 20.06 252,100
9/5/00 20.00 238,100
9/6/00 20.25 226,900
9/7/00 20.25 229,200
9/8/00 20.38 183,800
9/11/00 20.38 256,100
9/12/00 21.13 381,600
9/13/00 21.00 651,400
9/14/00 20.69 299,800
9/15/00 20.50 316,200
9/18/00 19.69 380,800
9/19/00 20.38 259,900
9/20/00 19.25 529,100
9/21/00 19.75 2,717,500
9/22/00 20.13 766,000
9/25/00 20.19 769,900
9/26/00 20.06 596,900
9/27/00 20.44 743,000
9/28/00 20.75 594,300
9/29/00 20.75 396,700
10/2/00 20.69 440,600
10/3/00 18.50 1,449,600
10/4/00 19.00 933,200
10/5/00 19.56 958,000
10/6/00 19.69 1,068,200
10/9/00 19.88 794,500
10/10/00 19.56 694,100
10/11/00 19.75 312,900
10/12/00 18.81 550,400
10/13/00 19.44 256,200
10/16/00 19.50 315,400
10/17/00 19.38 530,000
10/18/00 19.06 341,300
10/19/00 19.31 247,300
10/20/00 19.50 217,600
10/23/00 18.94 198,300
10/24/00 19.13 457,700
10/25/00 19.31 226,700
10/26/00 19.31 340,500
10/27/00 19.88 401,400
10/30/00 20.38 250,000
10/31/00 20.63 395,200
11/1/00 20.63 275,000
11/2/00 20.56 310,800
11/3/00 20.63 175,800
11/6/00 20.88 266,700
11/7/00 20.13 458,200
11/8/00 20.00 719,800
11/9/00 20.00 388,600
11/10/00 19.56 186,200
11/13/00 19.81 215,700
11/14/00 20.27 299,800
11/15/00 20.31 259,000
11/16/00 20.13 259,900
11/17/00 20.13 288,100
11/20/00 20.19 484,900
11/21/00 20.38 376,100
11/22/00 20.38 266,800
11/24/00 20.31 118,700
11/27/00 20.38 361,600
11/28/00 20.13 195,400
11/29/00 20.13 231,900
11/30/00 20.44 370,300
12/1/00 20.69 388,400
12/4/00 19.81 546,200
12/5/00 20.56 569,500
12/6/00 20.31 258,100
12/7/00 20.38 182,500
12/8/00 21.00 474,400
12/11/00 21.38 480,700
12/12/00 20.94 254,100
12/13/00 20.31 301,500
12/14/00 20.38 200,600
12/15/00 20.56 293,800
12/18/00 20.88 243,000
12/19/00 20.38 261,400
12/20/00 20.00 410,200
12/21/00 20.50 386,000
12/22/00 20.94 259,300
12/26/00 20.94 301,000
12/27/00 21.00 219,100
12/28/00 21.06 417,900
12/29/00 20.88 345,000
1/2/01 20.69 342,800
1/3/01 21.13 954,600
1/4/01 21.19 458,900
1/5/01 21.06 506,400
1/8/01 21.13 294,100
1/9/01 21.31 349,500
1/10/01 22.00 612,200
1/11/01 22.50 471,100
1/12/01 22.25 800,200
1/16/01 22.63 365,000
1/17/01 22.13 322,300
1/18/01 22.06 502,600
1/19/01 22.13 370,100
1/22/01 22.88 534,800
1/23/01 23.00 379,600
1/24/01 23.00 393,100
1/25/01 22.88 465,200
1/26/01 23.00 357,800
1/29/01 23.00 465,600
1/30/01 23.00 413,400
1/31/01 23.06 652,900
2/1/01 23.38 589,700
2/2/01 23.75 321,300
2/5/01 24.00 425,300
2/6/01 24.25 616,300
2/7/01 24.25 590,500
2/8/01 24.25 301,400
2/9/01 24.13 507,900
2/12/01 24.06 392,300
2/13/01 24.19 608,700
2/14/01 23.50 1,057,000
2/15/01 23.63 640,400
2/16/01 23.75 312,400
2/20/01 23.94 435,600
2/21/01 23.69 480,200
2/22/01 23.56 484,100
2/23/01 23.50 512,400
2/26/01 23.75 280,900
2/27/01 24.06 692,000
2/28/01 23.88 446,500
3/1/01 24.00 224,600
3/2/01 24.13 398,100
3/5/01 24.31 225,100
3/6/01 24.63 231,600
3/7/01 24.94 301,800
3/8/01 24.94 347,800
3/9/01 24.81 277,000
3/12/01 23.94 223,500
3/13/01 24.38 311,300
3/14/01 23.38 469,500
3/15/01 23.38 478,100
3/16/01 22.50 445,900
3/19/01 22.88 476,900
3/20/01 22.13 307,500
3/21/01 21.94 546,000
3/22/01 21.19 760,200
3/23/01 22.19 424,400
3/26/01 22.94 237,200
3/27/01 23.13 371,100
3/28/01 22.69 223,700
3/29/01 22.75 453,100
3/30/01 20.13 2,184,900
4/2/01 20.63 1,024,900
4/3/01 21.06 899,600
4/4/01 20.75 1,276,400
4/5/01 21.88 978,500
4/6/01 20.94 595,000
4/9/01 21.60 320,000
4/10/01 21.58 429,200
4/11/01 19.57 1,878,300
4/12/01 20.25 887,500
4/16/01 19.90 723,800
4/17/01 19.88 611,600
4/18/01 19.90 1,240,500
4/19/01 20.04 814,800

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48 JANNEY MONTGOMERY SCOTT
===========================

ALLC - Shareholder Profile
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SHARES BENEFICIAL
INSTITUTIONAL INVESTORS (1) HELD (000S) OWNERSHIP
- -------------------------- ----------- ---------

Goldman Sachs 2,918 3.4%
Lazard Freres 1,889 2.2%
Franklin Resource 1,817 2.1%
JP Morgan 1,682 2.0%
T Rowe Price 1,419 1.7%
Barclays Global 1,379 1.6%
Fenimore Asset 1,096 1.3%
Managers Fund 743 0.9%
Vanguard Group 733 0.9%
Mellon Bank 728 0.8%
Axe-Houghton 711 0.8%
State Street 642 0.7%
Schroder Investments 629 0.7%
Merrill Lynch 605 0.7%
Commonwealth of PA 572 0.7%
Neuberger & Berman 561 0.7%
Loomis Sayles 523 0.6%
Ashford Capital Management 516 0.6%
Wallace R. Weitz & Co. 501 0.6%
All Other Institutional Investors 11,297 13.2%
----------
30,960 36.1%

INSTITUTIONAL INVESTORS 30,960 36.1%
MANAGEMENT 5,177 6.0%
ESTIMATED RETAIL FLOAT 49,741 57.9%
---------- ----------
TOTAL SHARES OUTSTANDING(3) 85,878 100.0%

(1) Source: Bloomberg

(2) Source: March 28, 2001 Proxy

(3) Source: Shares outstanding as of March 16, 2001

SHARES BENEFICIAL
DIRECTORS AND OFFICERS (2) HELD (000S) OWNERSHIP
-------------------------- ----------- ---------

William L. Walton 1,196 1.4%
Joan M. Sweeney 584 0.7%
G. Cabell Williams, III 583 0.7%
John M. Scheurer 551 0.6%
George C. Williams, Jr. 433 0.5%
Philip A. McNeill 342 0.4%
Guy T. Steuart, II 333 0.4%
Warren K. Montouri 241 0.3%
Thomas H. Westbrook 237 0.3%
Scott S. Binder 190 0.2%
Penni F. Roll 111 0.1%
Samuel B. Guren 103 0.1%
All Other Management 273 0.3%
----------
5,177 6.0%

[PIE CHART]

BENEFICIAL OWNERSHIP

Institutional Investors 36.1%
Management 6.0%
Estimated Retail Float 57.9%

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49 JANNEY MONTGOMERY SCOTT
===========================

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SELECTED ALLC RESEARCH REPORTS

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JANNEY MONTGOMERY SCOTT
===========================

Form: SC 13E3

Documents

EX-(C)(2) PRESENTATION TO SUNSOURCE BOARD