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To: Sergio H who wrote (993)	12/31/1997 12:06:00 AM
From: RADAR )))	Read Replies (1) \| Respond to of 2377

Henry and Sergio: The fundamentals on EDAC look sweet and so does the chart. I found EDAC several weeks ago and have liked it all along. Rates a 99/99 on the IBD scale. Chart is excellent with a good uptrend established. Some of the attributes that catch my eye include: comparitive operating results for the 9 months ended Sept 30, 1997 are: sales of $28,254,000 with net income of $1,030,000 and earnings per share of $.25 compared to sales of $22,831,000; net income of $30,000 and earnings per share of $.01 for the comparable period in the prior year. Lee Morris and Arnold Sargis were elected to the board of directors. Morris is chairman and chief executive officer of Robert E. Morris Co. Sargis is president of AJ Sargis and Associates. Company engineers, designs and manufactures tools, fixtures, special machines, jet engine components, medical instruments components and spindels used in major manufacturing equipment. Company is parent of Gros-Ite Inductries which has been restructured into the following four distinct business units: Gros-Ite Precision Spindles, Gros-Ite Precision Ecgineered Components, Gros-Ite Large Machining and Gros-Ite Engineered Solutions. The company has 300 accounts selling to aerospace and medical indutries and government agencies. Territory is continental United States. Company employees 190 full time and 5 part time employees including officers. Shares outstanding equal 3.83 million with a float of 2.30 million. Stock price traded today at 8 3/8 bid and 8 5/8 ask. 52 week high is 9 1/16 which was recently established. EDAC'S manufactured products are sold primarily through individual purchase orders on a quotation or bid basis. Its sales personnel and management maintain contacts with purchasing sources to keep informed as to manufacturing projects available for quotation. EDAC occasionally enters into annual manufacturing contracts on specific componets. EDAC suffered losses in 1995 which served as a catalyst to initiate action in 1996 for major restructuring of management. In 1996 the goal was to bring to the management team a few experienced contemporary managers with the ability to organize and lead the company therough the required charnge process. A new President and CEO. Edward J, McNerney joined EDAC in October and brought a wealth of experience in contemporary manufacturing techniques with a proven track record. Under his leadership and with the assistance of a core group of managers the company was restructured into focused business units along product lines. The restructuring process focused on: reducing operating costs through implementation of Lean Manufacturing techniques; and, inventory reduction through just in time delivery contracts; and, improvements in on time delivery through information services improvement and visual management practices; and, purchasing new equipment for cost reduction, improved quality, reduction of outsourced products and new product development. Revenues for the Company over the last three years are: 1996 1995 1994 30,218,000 24,554,000 22,229,000 Earnings for the fiscal year ended December 31, 1997 should be around $40,000,000. This company has completed a succesful restructuring and has proven results from it new operations. The Management has options and bonus's beginning in 1998 based on their performance which equal as much as 40% of their annual salaries.