To: Trooper who wrote (9 ) 12/19/1998 2:48:00 PM From: eugenic1 Respond to of 1522
PRODUCTS The Company markets the products described below. Four Wheel Walk Behind Trimmer The Company's primary product is a patented four wheel walk behind lawn trimmer. The Company sells two models powered by a Tecumseh two-cycle gas engine as well as a battery powered unit, which can operate for one and one- half hours on a single battery charge. The battery unit is sold with a charger. The trimmers may also be utilized as lawn mowers since the four wheel platform allows for a level and even cut. This attribute particularly favors owners of homes with small lawns in that the Trim-A-Lawn trimmer serves two purposes thereby eliminating the need for a trimmer and a mower. The gas-powered trimming units are lightweight, affordable, and have a fifteen-inch cut using either the Company's patented cutting line or patented replacement blades. The walk behind trimmer is principally distinguished from conventional hand held trimmers because most noise and vibration is placed at ground level as opposed to the shoulder level height of hand-held trimmers. In addition, the walk behind trimmer greatly reduces the potential for back strain normally associated with the hand-held trimmer. Quick Change Head for Trimmers A patented quick change head is sold as both an optional component for both the gas and battery powered units as well as an aftermarket product for owners of Trim-A-Lawn trimmers. The quick change head was introduced for the 1997 model year. The significant attribute of the quick change head is that it utilizes a revolutionary latching system which allows an operator to change from a cutting blade to a cutting line in under thirty seconds. This feature allows for a complete range of trimming activities and is not found with conventional hand held trimmers. Replacement Lines and Blades Trim-A-Lawn has patented a highly durable triangular cutting line, which is used on all trimmer models. The triangular design allows an even cut to be attained instead of a tearing cut occurring with the use standard round line frequently used on hand held trimmers. In 1996, the company developed and patented a plastic encapsulated steel blade. This blade, in the view of management, has proven to be more durable than, and to outlast, all competitive blade products currently sold. In testing it has proven to be as safe as competitive plastic blades sold on the market today. Further, the blade allows for trimming activities to be expanded to areas of heavier growth not previously able to be trimmed using a plastic blade. Also, the blade has been designed to be reversible thereby allowing for a fresh cutting edge to be used. OPERATIONS All sales, manufacturing operations, and administrative functions are conducted principally within the United States. Foreign sales, primarily to distributors in the Canadian provinces do not constitute a significant component of sales. PRODUCT ASSEMBLY The Company outsources the manufacture of major components of its products. The company's facility at 807 Broad Street Utica, New York is the central assembly and distribution point for all of its products. The Company has both the operating capacity and facility size necessary to support its planned sales program in future periods. The company is primarily an assembler of its products, and most of the components are commercially available from a number of sources. While the company is generally not dependent on any one supplier, the largest component, the engines, are obtained solely from Tecumseh. The Company believes that in adverse circumstances alternate engine supply arrangements could be made, although no assurances can be given as to availability, the impact on product cost, delivery, or any other terms.