Middleby - 10-Q quarterly report FY

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<H1 ALIGN=CENTER><FONT SIZE=3>FORM 10-Q</FONT></H1>



<H1 ALIGN=CENTER><FONT SIZE=3>SECURITIES AND EXCHANGE COMMISSION</FONT></H1>



<H1 ALIGN=CENTER><FONT SIZE=3>Washington, D.C. 20549</FONT></H1>





<P>(Mark One)</P>



<BR>

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<TD WIDTH=3% ALIGN=left>_X_</TD>

<TD WIDTH=2%>&nbsp;</TD>

<TD WIDTH=95% ALIGN=left>Quarterly Report Pursuant to

Section 13 or 15(d) of the Securities Exchange Act of 1934 </TD>

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<P ALIGN=CENTER><B>For the period ended July 3, 1999</B> </P>



<P ALIGN=CENTER>or </P>



<BR>

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<TD WIDTH=3% ALIGN=left>___</TD>

<TD WIDTH=2%>&nbsp;</TD>

<TD WIDTH=95% ALIGN=left>Transition Report Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934 </TD>

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<P ALIGN=CENTER>Commission File No. 1-9973 </P>



<P ALIGN=CENTER>THE MIDDLEBY CORPORATION<BR>

(Exact Name of Registrant as Specified in its Charter) </P>

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<TD WIDTH=40% ALIGN=CENTER><B>Delaware</B><BR>(State or Other Jurisdiction of<BR>Incorporation or Organization)</TD>

<TD WIDTH=20%>&nbsp;</TD>

<TD WIDTH=40% ALIGN=CENTER><B>36-3352497</B><BR>(I.R.S. Employer Identification No.)</TD>

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<BR>



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<TD WIDTH=80% ALIGN=LEFT><B>2850 W. Golf Road, Suite 405, Rolling Meadows, Illinois</B><BR>(Address of Principal Executive Offices)</TD>

<TD WIDTH=20% ALIGN=CENTER><B>60008</B><BR>(Zip Code)</TD>

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<P>Registrant&#146;s Telephone No., including Area Code &nbsp;&nbsp;&nbsp;&nbsp;<B>(847) 758-3880</B> </P>





<P>Indicate by check mark whether the Registrant (1) has filed

all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding twelve (12) months (or for such

shorter period that the Registrant was required to file such reports), and (2)

has been subject to such filing requirements for the past 90 days. YES _X_

&nbsp;NO___ </P>





<P>As of July 30, 1999, there were 10,157,721 shares of the

registrant&#146;s common stock outstanding. </P>



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<H1 ALIGN=CENTER><FONT SIZE=3>THE MIDDLEBY CORPORATION AND SUBSIDIARIES</FONT></H1>



<H1 ALIGN=CENTER><FONT SIZE=3>QUARTER ENDED JULY 3, 1999</FONT></H1>





<P ALIGN=CENTER><FONT SIZE=3>INDEX</FONT> </P>



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<TH COLSPAN="2" ALIGN=LEFT><FONT SIZE="-1">DESCRIPTION</FONT><HR ALIGN=LEFT WIDTH=15% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-1">PAGE</FONT><HR WIDTH=95% SIZE=1  NOSHADE></TH></TR>

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<TD WIDTH="92%" ALIGN="LEFT"><FONT SIZE="-1">PART I. &nbsp;&nbsp;FINANCIAL INFORMATION</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="2%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

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<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1. &nbsp;&nbsp;Consolidated Financial Statements</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

<TR VALIGN="TOP">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BALANCE SHEETS<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 3, 1999 and January 2, 1999</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

<TR VALIGN="TOP">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STATEMENTS OF EARNINGS<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 3, 1999 and July 4, 1998</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

<TR VALIGN="TOP">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STATEMENTS OF CASH FLOWS<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 3, 1999 and July 4, 1998</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTES TO FINANCIAL STATEMENTS</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

<TR VALIGN="TOP">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 2. &nbsp;&nbsp;Management&#146;s Discussion and Analysis<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of Financial Condition and Results of<BR>



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operations

</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

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<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 3. &nbsp;&nbsp;Quantitative and Qualitative Disclosures<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;About Market Risk</FONT></TD><TD

ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">14</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD>&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">PART II. &nbsp;&nbsp;OTHER INFORMATION</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">14</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

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<P>PART I. &nbsp;&nbsp;FINANCIAL INFORMATION</P>



<H1 ALIGN=CENTER><FONT SIZE=3><B>THE MIDDLEBY CORPORATION AND SUBSIDIARIES<BR>

CONSOLIDATED BALANCE SHEETS<BR>(In Thousands, Except Per Share Amounts)</B></FONT></H1>



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<TH COLSPAN="2"><FONT SIZE="-2">(Unaudited)<BR>July 3, 1999</FONT><HR WIDTH=55% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">January 2, 1999</FONT><HR WIDTH=80% SIZE=1 NOSHADE></TH></TR>

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<TD WIDTH="64%" ALIGN="LEFT"><FONT SIZE="-1">ASSETS</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Cash and cash equivalents</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;4,411</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;6,768</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Accounts receivable, net</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">27,156</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">24,330</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Inventories, net</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">18,153</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">20,456</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Prepaid expenses and other</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">782</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">941</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Current deferred taxes</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,895</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,895</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">53,397</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">55,390</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Property, plant and equipment, net of</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;accumulated depreciation of</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;$16,696 and $15,910</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">21,910</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22,596</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Excess purchase price over net assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;acquired, net of accumulated</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;amortization of $5,546 and $5,186</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">13,347</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">13,617</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Deferred taxes</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,449</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,347</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Other assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,002</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,729</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;98,105</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;99,679</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="2"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Current maturities of long-term debt .</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;2,166</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;1,893</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Accounts payable</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">8,848</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,945</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Accrued expenses</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">12,956</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,943</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">23,970</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">24,781</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Long-term debt</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">24,644</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">25,932</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Retirement benefits and other</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;non-current liabilities</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,853</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,232</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Shareholders&#146; equity:</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Preferred stock, $.01 par value;</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;nonvoting; 2,000,000 shares</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;authorized; none issued</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Common stock, $.01 par value;</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;20,000,000 shares authorized;</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;10,996,000 issued in 1999 and</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;1998</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">110</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">110</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Paid-in capital</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">54,602</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">54,602</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Treasury stock at cost; 838,000</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;shares in 1999 and 1998</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(3,309</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(3,309</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Accumulated Deficit</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(4,251</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(4,303</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Accumulated other comprehensive</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;income</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,514</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,366</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders&#146; equity</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">44,638</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">44,734</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders&#146; equity</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;98,105</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;99,679</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>





<TABLE WIDTH=600>

<TR>

<TD>

<P ALIGN=CENTER><BR>See accompanying notes </P>



</TD>

</TR>

</TABLE>



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<HR SIZE=5 NOSHADE>



<TABLE WIDTH=600>

<TR>

<TD>



<H1 ALIGN=CENTER><FONT SIZE=3><B>THE MIDDLEBY CORPORATION AND SUBSIDIARIES<BR>

CONSOLIDATED STATEMENTS OF EARNINGS<BR>(In Thousands, Except Per Share Amounts)<BR><BR>(Unaudited)</B></FONT></H1>



</TD>

</TR>

</TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Three Months Ended</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Six Months Ended</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH>

</TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=80% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=80% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=80% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=80% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="54%" ALIGN="LEFT"><FONT SIZE="-1">Net sales</FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE="-1">$36,527</FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE="-1">$33,641</FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE="-1">$68,965</FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE="-1">$64,742</FONT></TD>

<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Cost of sales</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">25,801</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22,969</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">48,616</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">44,632</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,726</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,672</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">20,349</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">20,110</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Selling and distribution expenses</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,675</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,417</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">9,341</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,518</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">General and administrative expenses</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,605</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,193</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">6,825</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,909</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Non-recurring expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">210</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">960</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,236</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,062</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,223</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,683</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Interest expense and deferred</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;financing amortization</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">696</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">759</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,387</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,496</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Other expense (income), net</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">93</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">141</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">352</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">253</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings before income taxes .</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,447</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,162</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,484</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,934</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Provision for income taxes</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,046</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">371</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,432</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">623</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;401</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;791</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;1,311</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="2"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Net earnings per share:</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.04</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.07</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.01</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.12</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.04</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.07</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.01</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;0.12</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Weighted average number of shares:</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,158</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,007</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,158</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,972</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,258</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,202</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,251</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,170</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

</TABLE>





<TABLE WIDTH=600>

<TR>

<TD>



<BR>



<P ALIGN=CENTER>See accompanying notes </P>



</TD>

</TR>

</TABLE>





<!-- *************************************************************************** -->

<!-- MARKER LABEL="sheet: 5, page: 5" -->

<HR SIZE=5 NOSHADE>





<TABLE WIDTH=600>

<TR>

<TD>





<H1 ALIGN=CENTER><FONT SIZE=3><B>THE MIDDLEBY CORPORATION AND SUBSIDIARIES<BR>

CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>(In Thousands)<BR>(Unaudited)</B></FONT></H1>





</TD>

</TR>

</TABLE>





<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Six Months Ended</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

</TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=55% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=65% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="64%" ALIGN="LEFT"><FONT SIZE="-1">Cash flows from operating activities-</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Net earnings</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;1,311</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Adjustments to reconcile net earnings</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;to cash provided by continuing</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;operating activities-</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,961</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,395</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Utilization of NOL&#146;s</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,349</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">604</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Non-cash portion of non-recurring</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;expenses</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">428</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Changes in assets and liabilities-</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(3,018</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(4,131</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,278</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,764</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,456</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(750</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,109</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,613</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liabilities</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">930</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">387</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Net cash used in operating activities .</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(585</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(6,561</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Cash flows from investing activities-</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Purchase of subsidiary minority</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;interest</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(1,134</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Additions to property and equipment</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(871</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,211</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Net cash used in investing activities .</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(871</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(3,345</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Cash flows from financing activities-</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Proceeds (repayments) under</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;intellectual property lease</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">319</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(451</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Decrease in revolving credit line, net</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(915</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Reduction in foreign bank debt</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(419</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Other financing activities, net</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(93</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">43</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Net cash used in</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;financing activities</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(689</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(827</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Effect of exchange rates on cash</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(212</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(55</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Changes in cash and cash equivalents-</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Net decrease in cash and cash</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;equivalents</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(2,357</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(10,788</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Cash and cash equivalents at</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;beginning of year</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">6,768</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">12,321</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Cash and cash equivalents at end</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;of quarter</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;4,411</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;1,533</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Interest paid</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;417</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;1,152</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Income taxes paid</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;558</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

</TABLE>



<TABLE WIDTH=600>

<TR>

<TD>



<BR>



<P ALIGN=CENTER>See accompanying notes </P>



</TD>

</TR>

</TABLE>









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<TABLE WIDTH=600>

<TR>

<TD>



<H1 ALIGN=CENTER><FONT SIZE=3><B>THE MIDDLEBY CORPORATION AND SUBSIDIARIES</B></FONT></H1>



<H1 ALIGN=CENTER><FONT SIZE=3><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></H1>



<H1 ALIGN=CENTER><FONT SIZE=3><B>JULY 3, 1999<BR>(Unaudited)</B></FONT></H1>



<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of Significant Accounting Policies</FONT></H2>



<P>The financial statements have been prepared by The Middleby

Corporation (the &#147;Company&#148;), without audit, pursuant to the rules and

regulations of the Securities and Exchange Commission. Certain information and

footnote disclosures normally included in financial statements prepared in

accordance with generally accepted accounting principles have been condensed or

omitted pursuant to such rules and regulations, although the Company believes

that the disclosures are adequate to make the information not misleading. These

financial statements should be read in conjunction with the financial

statements and related notes contained in the Company&#146;s 1998 Annual Report.

Other than as indicated herein, there have been no significant changes from the

data presented in said Report. </P>



<P>In the opinion of management, the financial statements contain

all adjustments necessary to present fairly the financial position of the

Company as of July 3, 1999 and January 2, 1999, and the results of operations

for the six months ended July 3, 1999 and July 4, 1998 and cash flows for the

six months ended July 3, 1999 and July 4, 1998. Certain prior year amounts have

been reclassified to be consistent with the current year presentation. </P>



<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive Income</FONT></H2>



<P>During the first quarter of 1998, the Company adopted

Statement of Financial Accounting Standards No. 130, &#147;Reporting Comprehensive

Income,&#148; (SFAS No. 130), which requires companies to report all changes in

equity during a period, except those resulting from investment by owners and

distribution to owners, in a financial statement for the period in which they

are recognized. </P>



<P>Components of comprehensive income were as follows: </P>



</TD>

</TR>

</TABLE>





<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Six Months Ended</FONT></TH>

</TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=45% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=45% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">(in thousands)</FONT></TH>

</TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="55%" ALIGN="LEFT"><FONT SIZE="-1">Net earnings</FONT></TD>

<TD WIDTH="5%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;52</FONT></TD>

<TD WIDTH="7%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;1,311</FONT></TD>

<TD WIDTH="7%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Cumulative translation</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;adjustment</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(148</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(258</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>&nbsp;&nbsp;Comprehensive (loss) income</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;(96</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;1,053</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>











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<TABLE WIDTH=600>

<TR>

<TD>



<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></H2>



<P>Inventories are valued using the first-in, first-out method. </P>



<P>Inventories consist of the following: </P>



</TD>

</TR>

</TABLE>





<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=45% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">January 2, 1999</FONT><HR WIDTH=55% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">(In thousands)</FONT></TH>

</TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="50%" ALIGN="LEFT"><FONT SIZE="-1">Raw materials and parts</FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;3,976</FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;5,281</FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Work-in-process</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,441</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,743</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Finished goods</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">9,736</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,432</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$18,153</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$20,456</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>



<TABLE WIDTH=600>

<TR>

<TD>



<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued Expenses</FONT></H2>



<P>Accrued expenses consist of the following: </P>



</TD>

</TR>

</TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">January 2, 1999</FONT><HR WIDTH=55% SIZE=1  NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">(In thousands)</FONT></TH>

</TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="52%" ALIGN="LEFT"><FONT SIZE="-1">Accrued payroll and</FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="6%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;related expenses</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;3,606</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;2,629</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Accrued customer rebates</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,009</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,088</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Accrued commissions</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,444</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,497</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Accrued warranty</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,014</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,372</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Other accrued expenses</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,883</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,357</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$12,956</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$11,943</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>



<HR SIZE=5 NOSHADE>



<TABLE WIDTH=600>

<TR>

<TD>



<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-recurring Expenses</FONT></H2>



<P>During the first half of 1999, the Company recorded

non-recurring expenses in the amount of $960,000 principally related to

severance benefits for terminated employees at the Cooking Systems Group and

the International Distribution Division. As of July 3, 1999, the remaining

liability associated with unpaid severance benefits amounted to $428,000. </P>



<P>During the fourth quarter of 1998, the Cooking Systems Group

recorded charges of $1,932,000 associated with the decision to discontinue

certain non-strategic product lines. Through the end of the quarter the Company

had incurred approximately $1,545,000 primarily associated with the sale and

disposal of the related assets. As of July 3, 1999, the remaining reserve

amounted to $387,000. All actions associated with this initiative will be fully

concluded by the end of the third quarter of 1999. </P>







</TD>

</TR>

</TABLE>





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<TABLE WIDTH=600>

<TR>

<TD>



<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment Information</FONT></H2>



<P>The Company operates in three reportable business segments

defined by factors including physical location, management reporting structure,

and operating activities. These segments include the Cooking Systems Group, the

International Specialty Equipment Division and the International Distribution

Division. </P>



<P>The accounting policies of the segments are the same as those

described in the summary of significant accounting policies. The Company

evaluates individual segment performance based on operating income.

Intersegment sales are made at established arms-length transfer prices. </P>



<P>The following table summarizes the results of operations for

the Company&#146;s business segments: </P>



</TD>

</TR>

</TABLE>







<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Cooking<BR>Systems<BR>Group</FONT><HR WIDTH=70% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">International<BR>Specialty<BR>Equipment</FONT><HR WIDTH=85% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">International<BR>Distribution</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Corporate<BR>and<BR>Other(1)</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Eliminations<BR>(2)</FONT><HR WIDTH=95% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Total</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="34%" ALIGN="LEFT"><FONT SIZE="-1"><BR>Three months ended July 3, 1999</FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Net sales</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;28,112</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;1,179</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;10,476</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,305</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;36,527</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Operating income (loss)</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,241</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(383</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(642</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(1,063</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">83</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,236</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Non-recurring expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">86</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">124</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">210</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Depreciation expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">626</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">106</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">73</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">41</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">846</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Capital expenditures</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">476</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">28</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">47</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">573</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Six months ended July 3, 1999</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Net sales</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">53,553</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,370</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">19,689</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">307</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(6,954</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">68,965</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Operating income (loss)</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">6,828</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(625</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(1,232</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(1,832</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">84</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,223</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Non-recurring expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">582</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">378</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">960</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Depreciation expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,177</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">213</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">146</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">91</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,627</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Capital expenditures</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">709</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">58</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">47</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">57</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">871</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Total assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">47,895</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,008</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">21,663</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">29,521</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(10,982</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">98,105</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Long-lived assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">17,759</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,808</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,125</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22,016</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">44,708</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Three months ended July 4, 1998</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Net sales</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">27,121</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,248</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">9,710</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">249</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(4,687</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">33,641</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Operating income (loss)</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,318</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">96</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(304</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(1,048</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,062</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Non-recurring expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Depreciation expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">407</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">76</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">64</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">24</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">571</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Capital expenditures</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,021</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">8</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,032</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Six months ended July 4, 1998</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Net sales</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">49,788</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,613</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">18,991</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,127</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(7,777</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">64,742</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Operating income (loss)</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,603</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">236</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(663</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(1,493</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,683</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Non-recurring expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Depreciation expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">783</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">151</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">131</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">62</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,127</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Capital expenditures</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,960</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">72</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">132</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">47</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,211</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Total assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">60,592</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,156</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22,977</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">20,563</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(10,982</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">103,306</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Long-lived assets</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">24,297</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,151</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,386</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">12,781</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">42,615</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

</TABLE>



<BR>



<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>

<TR VALIGN=TOP>

<TD WIDTH=5%>(1)

</TD>

<TD WIDTH=95%><P>Includes sales of discontinued

product lines in addition to corporate and other general Company assets and

operations. </P></TD></TR></TABLE>



<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>

<TR VALIGN=TOP>

<TD WIDTH=5%>(2)

</TD>

<TD WIDTH=95%><P>Includes elimination of intercompany

sales and receivables. Intercompany sale transactions are predominantly from

the Cooking Systems Group to the International Distribution Division. </P></TD></TR></TABLE>





<!-- *************************************************************************** -->

<!-- MARKER LABEL="sheet: 9, page: 9" -->

<HR SIZE=2 NOSHADE>





<TABLE WIDTH=600>

<TR>

<TD>





<P>Net sales by major geographic region, including those sales

from the Cooking Systems Group direct to international customers, were as

follows (in thousands): </P>



</TD>

</TR>

</TABLE>





<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Three Months Ended</FONT><HR WIDTH=55% SIZE=1  NOSHADE></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Six Months Ended</FONT><HR WIDTH=55% SIZE=1 NOSHADE></TH>

</TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3,</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4,</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3,</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4,</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">1999</FONT><HR WIDTH=25% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">1998</FONT><HR WIDTH=25% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">1999</FONT><HR WIDTH=25% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">1998</FONT><HR WIDTH=25% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="40%" ALIGN="LEFT"><FONT SIZE="-1">United States</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE="-1">$24,765</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE="-1">$22,791</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE="-1">$46,818</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE="-1">$42,726</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Asia</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,669</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,215</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">7,003</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">7,289</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Europe and Middle East</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,696</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,378</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">6,825</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">7,338</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Latin America</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,123</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,015</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,785</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,168</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Canada</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,274</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,242</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,534</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,221</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total International</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,762</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,850</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22,147</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22,016</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Net Sales</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$36,527</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$33,641</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$68,965</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$64,742</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>



<HR SIZE=5 NOSHADE>



<TABLE WIDTH=600>

<TR>

<TD>



<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>Item 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis of

Financial Condition and Results of Operations (Unaudited).</FONT></H2>





<H2 ALIGN=LEFT><FONT SIZE=3>Informational Note</FONT></H2>



<P>This report contains forward-looking statements subject to the

safe harbor created by the Private Securities Litigation Reform Act of 1995.

The Company cautions readers that these projections are based upon future

results or events and are highly dependent upon a variety of important factors

which could cause such results or events to differ materially from any

forward-looking statements which may be deemed to have been made in this

report, or which are otherwise made by or on behalf of the Company. Such

factors include, but are not limited to, changing market conditions; the

availability and cost of raw materials; the impact of competitive products and

pricing; the timely development and market acceptance of the Company&#146;s

products; foreign exchange and political risks affecting international sales,

in particular any continued weakness in Asian economies; and other risks

detailed herein and from time to time in the Company&#146;s Securities and Exchange

Commission filings, including those discussed under &#147;Risk Factors&#148; in the

Company&#146;s Registration Statement on Form S-2 (Reg. No. 333-35397). Any forward

looking statements contained in this report speak only as of the date of this

filing. The Company undertakes no obligation to update publicly any forward

looking information, whether as a result of new information, future events or

otherwise. </P>







</TD>

</TR>

</TABLE>





<!-- *************************************************************************** -->

<!-- MARKER LABEL="sheet: 10, page: 10" -->

<HR SIZE=5 NOSHADE>



<TABLE WIDTH=600>

<TR>

<TD>



<H2 ALIGN=center><FONT SIZE=3><U>Net Sales Summary</U></FONT></H2>



</TD>

</TR>

</TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="8"><FONT SIZE="-2">Three Months Ended</FONT><HR WIDTH=45% SIZE=1 NOSHADE></TH>

<TH COLSPAN="8"><FONT SIZE="-2">Six Months Ended  </FONT><HR WIDTH=45% SIZE=1 NOSHADE></TH>

</TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=65% SIZE=1  NOSHADE></TH>

<TH COLSPAN="4"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=65% SIZE=1  NOSHADE></TH>

<TH COLSPAN="4"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=65% SIZE=1  NOSHADE></TH>

<TH COLSPAN="4"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=65% SIZE=1  NOSHADE></TH>

</TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Sales  </FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Percent</FONT><HR WIDTH=75% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Sales  </FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Percent</FONT><HR WIDTH=75% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Sales  </FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Percent</FONT><HR WIDTH=75% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Sales  </FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Percent</FONT><HR WIDTH=75% SIZE=1  NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="31%" ALIGN="LEFT"><FONT SIZE="-1">Business Divisions</FONT></TD>

<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="3%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE="-1"></FONT></TD>

<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Conveyor oven</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;equipment</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;13,374</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">36.6</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;12,601</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">37.5</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;24,809</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">36.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;22,142</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">34.2</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Counterline cooking</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;equipment</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3,667</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,391</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">13.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">7,199</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">7,997</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">12.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Core cooking</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;equipment</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,071</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">30.3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,129</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">30.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">21,546</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">31.3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">19,649</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">30.3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="18"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Total Cooking Systems</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Group</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">28,112</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">76.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">27,121</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">80.6</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">53,554</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">77.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">49,788</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">76.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">International Specialty</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Equipment</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,179</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3.2</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,248</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,370</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,613</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>International</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;Distribution (1)</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,476</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">28.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">9,710</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">28.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">19,688</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">28.6</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">18,991</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">29.3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="18"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Total international</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;divisions</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">11,655</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">31.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,958</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">32.6</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22,058</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">32.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">21,604</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">33.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>Intercompany</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;sales (2)</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(3,305</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(9.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(4,687</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(13.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(6,954</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(10.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(7,777</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">(12.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">)</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Other</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">65</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.2</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">249</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">307</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1,127</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="18"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1"><BR>&nbsp;&nbsp;Total</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;36,527</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;33,641</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;68,965</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;64,742</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="18"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>







<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>

<TR VALIGN=TOP>

<TD WIDTH=5%>(1)

</TD>

<TD WIDTH=95%><P>Consists of sales of products

manufactured by Middleby and products manufactured by third parties. </P></TD></TR></TABLE>



<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>

<TR VALIGN=TOP>

<TD WIDTH=5%>(2)

</TD>

<TD WIDTH=95%><P>Consists of sales to the Company&#146;s

international distribution division from the Company&#146;s other business divisions. </P></TD></TR></TABLE>

<BR>

<HR SIZE=5 NOSHADE>

<TABLE WIDTH=600>

<TR>

<TD>



<H2 ALIGN=LEFT><FONT SIZE=3>Results of Operations</FONT></H2>



<P>The following table sets forth certain consolidated statements

of earnings items as a percentage of net sales for the periods. </P>



</TD>

</TR>

</TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Three Months Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>

<TH COLSPAN="4"><FONT SIZE="-2">Six Months Ended  </FONT><HR WIDTH=85% SIZE=1   NOSHADE></TH>

</TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 3, 1999</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">July 4, 1998</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="48%" ALIGN="LEFT"><FONT SIZE="-1">Net sales</FONT></TD>

<TD WIDTH="4%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD WIDTH="5%" ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD WIDTH="5%" ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD WIDTH="5%" ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE="-1">100.0</FONT></TD>

<TD WIDTH="5%" ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Cost of sales</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">70.6</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">68.3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">70.5</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">68.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">29.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">31.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">29.5</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">31.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Selling, general and administrative</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;expenses</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">22.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">25.6</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">23.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">25.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Non-recurring expense</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.6</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Income from operations</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">6.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">6.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5.7</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Interest expense and deferred</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;financing amortization, net</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.2</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.3</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Other (income) expense, net</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.2</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.5</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Earnings before income taxes</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3.5</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.2</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">3.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">Provision for income taxes</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.9</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Net earnings</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">1.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.4</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">0.1</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2.0</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">%</FONT></TD></TR>

<TR>

<TD COLSPAN="10"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>







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<TABLE WIDTH=600>

<TR>

<TD>



<H2 ALIGN=LEFT><FONT SIZE=3>Three Months Ended July 3, 1999 Compared to Three Months Ended July 4, 1998</FONT></H2>





<P><B>NET SALES.</B> &nbsp;&nbsp;Net sales in the three-month period ended July 3,

1999 increased 9% to $36.5 million as compared to $33.6 million in the

three-month period ended July 4, 1998. </P>



<P>Sales of the Cooking Systems Group for the three-month period

ended July 3, 1999 increased 4% to $28.1 million from $27.1 million in the

prior year. Sales of conveyor oven equipment increased 6% due to continued

strength in sales to major restaurant chains. Core cooking equipment sales

increased 9% with continued success of new product introductions and market

penetration. Sales of counterline equipment decreased 16% due to the

replacement of certain product offerings, as the Company continues to

strengthen the Toastmaster brand. </P>



<P>Sales of the international divisions increased 6% to $11.7

million from $11.0 million in the previous year period. Net sales of the

International Distribution Division increased by 8%. Improved sales in most international markets were

offset in part by reduced sales into

Japan, and the Philippines. Sales of the International Specialty Equipment

Division decreased by $69,000, or 5%, reflecting continued sluggishness of

restaurant, hotel and resort development within the region. </P>



<P><B>GROSS PROFIT.</B> &nbsp;&nbsp;Gross profit remained consistent with the prior year period

at $10.7 million.

As a percentage of sales, gross margins decreased from 31.7% in the prior year

to 29.4%, principally due to lower margins at the Philippines manufacturing

operation resulting from lower volume and unfavorable sales mix. Also, margins

for the International Distribution business were slightly lower due to costs

associated with inventory reduction programs, which have resulted in a 25%

decrease in inventory levels within Asia and Europe since year-end. Further,

provisions for inventory increased for potential exposures resulting from

product replacement decisions at the Cooking Systems Group. </P>



<P><B>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.</B> &nbsp;&nbsp;Selling, general

and administrative expenses decreased to $8.3 million as compared to $8.6

million in the prior year period. As a percentage of net sales, expenses

decreased to 22.7% as compared to 25.6%. The net decrease reflects the partial

impact of cost reductions made during the first half of the year and lower

commissions expense. </P>



<P><B>NON-RECURRING EXPENSES.</B> &nbsp;&nbsp;Non-recurring expenses of

approximately $0.2 million were recorded during the quarter for severance and

benefit costs associated with employee reduction efforts at the Cooking Systems

Group and the International Distribution division. </P>





</TD>

</TR>

</TABLE>









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<TABLE WIDTH=600>

<TR>

<TD>





<P><B>INCOME FROM OPERATIONS.</B> &nbsp;&nbsp;Income from operations increased to $2.2 million

from $2.1 million in the prior year. The net change in earnings reflects

increased sales offset by lower gross margins and the effect of non-recurring

expenses. </P>



<P><B>NON-OPERATING EXPENSES.</B> &nbsp;&nbsp;Non-operating expenses decreased to $0.8 million

from $0.9 million in the prior year due in part to slightly reduced interest

expense on lower borrowings. </P>



<P><B>INCOME TAXES.</B> &nbsp;&nbsp;A tax provision of $1.0 million at an effective rate of 72%

was recorded during the quarter primarily associated with taxable income

reported at the domestic operations, while no benefit was recognized for losses

at international subsidiaries. </P>



<BR>

<HR SIZE=5 NOSHADE>

<BR>

<H2 ALIGN=LEFT><FONT SIZE=3>Six Months Ended July 3, 1999 Compared to Six Months Ended July 4, 1998</FONT></H2>



<P><B>NET SALES.</B> &nbsp;&nbsp;Net sales in the six-month period ended July 3, 1999 increased 7%

to $69.0 million as compared to $64.7 million in the six-month period ended

July 3, 1998. </P>



<P>Sales of the Cooking Systems Group for the six-month period ended July 3,

1999 increased 8% to $53.6 million from $49.8 million in the prior year. Sales

of conveyor oven equipment increased 12% due to improved sales to major

restaurant chains. Core cooking equipment sales increased 10% largely due to

market penetration and success with new product introductions. Counterline

equipment sales decreased 10% due to product replacement as the Company

continues with efforts to strengthen the Toastmaster product offering. </P>



<P>Sales of the international divisions increased 2% to $22.1 million from

$21.6 million in the previous year period. Net sales of the International

Distribution division increased by 4% with greater sales in Latin America and

Canada, offset by decreased sales in Europe and Asia. Within Asia, improving

sales within Taiwan and Korea have been more than offset by reduced sales into

Japan, the Philippines and certain other Asian markets. Sales of the

International Specialty Equipment division decreased 9% from the prior year

period, as a result of continued sluggishness of restaurant, hotel and resort

development within the region. Prior year revenue included sales to a certain

major U.S. restaurant chain, which has temporarily slowed the rate of store

openings within Asia. </P>



<P><B>GROSS PROFIT.</B> &nbsp;&nbsp;Gross profit increased to $20.3 million from $20.1 million.

However, as a percentage of sales, gross margins decreased from 31.1% to 29.5%.

Margin percentage has been affected by lower margins at the Philippines

manufacturing operation resulting from lower volume and unfavorable sales mix.

Margins for the Cooking Systems Group have been impacted by provisions for

inventory associated with product replacement decisions and by higher warranty

costs associated with new product offerings. Also, margins for the

International Distribution business were slightly lower due to costs associated

with inventory reduction programs. </P>



</TD>

</TR>

</TABLE>









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<TABLE WIDTH=600>

<TR>

<TD>





<P><B>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.</B> &nbsp;&nbsp;Selling, general and

administrative expenses decreased from $16.4 million to $16.2 million. As a

percentage of net sales, selling, general and administrative expenses decreased

to 23.4% as compared to 25.4%. Expenses for the first half of the year reflect

higher commissions and marketing costs offset by the partial benefit of cost

reduction measures implemented during the first and second quarters of 1999. </P>



<P><B>NON-RECURRING EXPENSES.</B> &nbsp;&nbsp;Non-recurring expenses of approximately $1.0 million

were recorded during the six months ended July 3, 1999 for severance and

benefit costs associated with employee reduction efforts and office relocations

at the International Distribution division and the Cooking Systems Group.

Employee headcount has been reduced as a result of the cost reduction measures

to 872 at the end of the quarter as compared to 994 at the fiscal year-end of

1998. </P>



<P><B>INCOME FROM OPERATIONS.</B> &nbsp;&nbsp;Income from operations decreased to $3.2 million

from $3.7 million in the prior year, principally due to non-recurring expenses

incurred during 1999. Excluding non-recurring expenses, income from operations

increased by $0.5 million to $4.1 million, as a result of increased sales and

the benefit of continuing cost reduction efforts. </P>



<P><B>NON-OPERATING EXPENSES.</B> &nbsp;&nbsp;Non-operating expenses of $1.7 million remained

consistent with the prior year period. Interest expense decreased by $0.1

million from the prior year on lower borrowings, while other expense increased

by $0.1 million due in part to foreign exchange losses. </P>



<P><B>INCOME TAXES.</B> &nbsp;&nbsp;A tax provision of $1.4 million was recorded during the six

months ended July 3, 1999 at an effective rate of 96%. A provision has been

recorded for income associated with U.S. operations, while no benefit has been

recorded for losses associated with the foreign operations. </P>



<BR><HR SIZE=5 NOSHADE>

<BR>

<H2 ALIGN=LEFT><FONT SIZE=3>Financial Condition and Liquidity</FONT></H2>





<P>Total cash and cash equivalents decreased by $2.4 million to $4.4 million at

July 3, 1999 from $6.8 million at January 2, 1999. Net borrowings declined from

$27.8 million at January 2, 1999 to $26.8 million at July 3, 1999. The net use

of liquidity was primarily to fund capital expenditures of $0.9 million and

operating activities of $0.6 million. </P>



<P><B>OPERATING ACTIVITIES.</B> &nbsp;&nbsp;Net cash provided by operating activities before

changes in assets and liabilities was $3.7 million in the six months ended July

3, 1999 as compared to $3.3 million in the prior year period. Net cash used by

operating activities after changes in assets and liabilities was $0.6 million

as compared to $6.6 million in the prior year period. The improvement in

operating cash flow from the prior year period is largely due to inventory

reduction efforts which took place during the first six months of 1999,

representing a $5.0 million improvement in cash flow from the prior year period. </P>



</TD>

</TR>

</TABLE>









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<TABLE WIDTH=600>

<TR>

<TD>





<P>During the first six months of 1999, accounts receivables increased $3.0

million due to increased domestic sales and slower collections of receivables in the

Philippines from a certain major restaurant chain due to a delay in store

openings. Inventories decreased by $2.3 million as a result of the Company&#146;s

inventory reduction efforts, particularly within the international markets. The

net increase in prepaid expenses and other assets of $2.2 million was

principally due to the establishment of a trust to fund retirement benefits

under executive employment agreements. Accounts payable decreased $2.1 million

due to the timing of payments, including the effect of repayments of payables

which were extended at the prior year-end. Accrued expenses and other

liabilities increased $0.9 million due to increased reserve levels associated

with severance requirements and an increase in liabilities under certain sales

related programs. </P>



<P><B>INVESTING ACTIVITIES.</B> &nbsp;&nbsp;During the first half of 1999, the Company had capital

expenditures of $0.9 million primarily to enhance manufacturing capabilities

and upgrade computer systems at the Cooking Systems Group. </P>



<P><B>FINANCING ACTIVITIES.</B> &nbsp;&nbsp;Net borrowings under financing arrangements decreased

from $27.8 million to $26.8 million during the first half of 1999. The net

decrease is primarily due to the repayment of $0.9 million in borrowings in a

peseta-denominated loan under the Company&#146;s multi-currency revolving line of

credit during the second quarter of 1999. </P>



<P>During the first quarter of 1999, the Company&#146;s financing agreements were

amended to reduce the credit limit under the revolving credit facility from

$20.0 million to $10.0 million and to adjust the minimum requirements for

certain covenants which the Company had violated at year-end. As of July 3,

1999, the Company was in compliance with the amended covenants. Management

believes that the Company will have sufficient financial resources available to

meet its anticipated requirements for working capital, growth strategies,

capital expenditures and debt amortization for the foreseeable future. </P>



<BR>

<HR SIZE=5 NOSHADE>

<BR>



<H2 ALIGN=LEFT><FONT SIZE=3>Year 2000 Compliance</FONT></H2>



<P>The Company has assessed and continues to assess the impact of the Year 2000

issue on its reporting systems and operations. The Year 2000 issue exists

because many computer systems and applications currently use two-digit date

fields to designate a year. As the century date occurs, date sensitive systems

may recognize the Year 2000 as 1900 or not at all. This inability to recognize

or properly treat the year 2000 may cause the Company&#146;s systems to process

critical financial and operational information incorrectly. </P>



<P>The Company has undertaken a review of its information technology (&#147;IT&#148;)

systems. The Company has implemented new IT systems at its International

Distribution Division to enhance its current transaction processing and

information reporting capabilities. These systems are Year 2000 compliant. </P>







</TD>

</TR>

</TABLE>





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<!-- MARKER LABEL="sheet: 15, page: 15" -->



<TABLE WIDTH=600>

<TR>

<TD>



<P>In addition, the Company has substantially completed upgrades to existing IT

systems at all other business units to make these systems Year 2000 compliant. </P>



<P>The Company has also undertaken a review of its critical non-IT systems,

such as production machinery and phone systems. The Company is in the process

of contacting equipment vendors and service providers to assess the potential

risk associated with these systems. Non-compliant systems will be replaced or

modified. Based upon internal evaluations and assurances provided by equipment

and service vendors, the Company does not believe significant modification to

or replacement of existing non-IT systems will be required. However, the

Company cannot verify the assurances it has been provided from third parties. </P>



<P>Additionally, a review of key suppliers and customers is in process to

ensure that the flow of products and services will not be disrupted as a result

of failure of the supplier or customer to become Year 2000 compliant. While the

Company is receiving assurances that no such interruption will occur, the

Company cannot ensure that third parties will become compliant. Any significant

or prolonged interruption in the supply of essential services or products would

adversely affect the Company&#146;s operations and ability to conduct business. In

the event that the Company identifies problems with a service provider or other

vendor, it will attempt to obtain services and products from other available

sources. Similarly, problems with a significant portion of the Company&#146;s

customers in processing and paying invoices could materially impact the

Company&#146;s cash flows or liquidity. The Company is unable to anticipate whether

a significant portion of its customers will have difficulty in processing and

paying invoices. </P>



<P>Expenses associated with the Year 2000 issue relate primarily to the

modification of existing IT systems, and to date have not been material. The

Company anticipates that remaining costs to fully address these matters will

not exceed $0.1 million. The Company does not anticipate that future costs to

address the Year 2000 issue will have a material effect on its financial

condition. </P>



<P>The foregoing is a Year 2000 readiness disclosure entitled to protection as

provided in the Year 2000 Information and Readiness Disclosure Act. </P>



<BR>

<HR SIZE=5 NOSHADE>

<BR>

<H2 ALIGN=LEFT><FONT SIZE=3>International Exposure</FONT></H2>



<P>The Company has manufacturing operations located in Asia and distribution

operations in Asia, Canada, Europe and Latin America. The Company anticipates

that international sales will continue to account for a significant portion of

consolidated net sales in the foreseeable future. Countries within Asia and

certain other regions continue to be impacted by adverse economic conditions

which have affected the Company&#146;s sales volumes into these markets. Some sales

by the foreign operations are in local currency and an increase in the relative

value of the U.S. dollar against such currencies would lead to the reduction in

consolidated U.S. dollar sales and earnings.  </P>







</TD>

</TR>

</TABLE>







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<TABLE WIDTH=600>

<TR>

<TD>



<P>Additionally, foreign currency exposures are currently not specifically

hedged and there can be no assurances that the Company&#146;s future results of

operations will not be adversely affected by currency fluctuations.  </P>



<BR>

<HR SIZE=5 NOSHADE>

<BR>

<H2 ALIGN=LEFT><FONT SIZE=3>Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantitative and Qualitative Disclosures About Market Risk</FONT></H2>



<P>The Company is exposed to market risk related to changes in interest rates.

The following table summarizes the maturity of the Company&#146;s debt obligations: </P>



</TD>

</TR>

</TABLE>





<TABLE  CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Fixed<BR>Rate<BR>Debt</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH>

<TH COLSPAN="2"><FONT SIZE="-2">Variable<BR>Rate<BR>Debt</FONT><HR WIDTH=45% SIZE=1  NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">

<TH COLSPAN="2"><FONT SIZE="-2"></FONT></TH>

<TH COLSPAN="4"><FONT SIZE="-2">(dollars in thousands)</FONT></TH>

</TR>

<TR VALIGN="BOTTOM">

<TD WIDTH="16%" ALIGN="LEFT"><FONT SIZE="-1">1999</FONT></TD>

<TD WIDTH="18%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="21%" ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;1,999</FONT></TD>

<TD WIDTH="12%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD WIDTH="21%" ALIGN="RIGHT"><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</FONT></TD>

<TD WIDTH="12%" ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">2000</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">10,096</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">2001</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">4,981</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,234</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">2002</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">5,000</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">2003</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">2,500</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">&#151;</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$24,576</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD>

<TD ALIGN="RIGHT"><FONT SIZE="-1">$2,234</FONT></TD>

<TD ALIGN="LEFT"><FONT SIZE="-1">&nbsp;</FONT></TD></TR>

<TR>

<TD COLSPAN="6"><HR NOSHADE  SIZE="2"></TD></TR>

</TABLE>



<TABLE WIDTH=600>

<TR>

<TD>



<P>Fixed rate debt is comprised of a $15.0 million senior note and $9.6 million

due under lease arrangements. The senior note bears interest at a rate of

10.99% and the lease arrangements bear interest at an average implicit interest

rate of 10.2%. Variable rate debt is comprised of a $2.2 million yen

denominated loan under the Company&#146;s $10.0 million revolving credit line.

Interest under the revolving credit facility is assessed based upon the bank&#146;s

reference rate. The average interest rate assessed to the yen denominated loan

during the first half of 1999 was 0.9%. </P>





<H1 ALIGN=CENTER><FONT SIZE=3>PART II. &nbsp;&nbsp;OTHER INFORMATION</FONT></H1>



<P>The Company was not required to report the information pursuant to Items 1

through 6 of Part II of Form 10-Q for the three months ended July 3, 1999,

except as follows: </P>





<H1 ALIGN=left><FONT SIZE=3>Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits and Reports on Form 8-K</FONT></H1>



</TD>

</TR>

</TABLE>



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<TR VALIGN=TOP>

<TD WIDTH=5%>a)

</TD>

<TD WIDTH=95%><P>Exhibits - The following Exhibits are

filed herewith: </P></TD></TR></TABLE>



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</TD>

<TD WIDTH=95%><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit (27) - Financial Data Schedules

(EDGAR only) </P></TD></TR></TABLE>



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<TD WIDTH=5%>b)

</TD>

<TD WIDTH=95%><P>Reports on Form 8-K: </P></TD></TR></TABLE>



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<TD WIDTH=95%><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </P></TD></TR></TABLE>







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<H1 ALIGN=CENTER><FONT SIZE=3>SIGNATURES</FONT></H1>



<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the

Registrant has duly caused this report to be signed on its behalf by the

undersigned thereunto duly authorized. </P>



</TD>

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<TD WIDTH=50%><BR><U>THE MIDDLEBY CORPORATION</U><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</TD></TR>

<TR VALIGN=TOP>

<TD>&nbsp;</TD>

<TD>&nbsp;</TD>

<TD>&nbsp;</TD></TR>

<TR VALIGN=TOP>

<TD>Date: <U>&nbsp;&nbsp;&nbsp;August 16, 1999&nbsp;&nbsp;&nbsp;</U></TD>

<TD>By:</TD>

<TD><U>/s/ John J. Hastings&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

<BR><BR>John J. Hastings, Executive<BR>Vice President, Chief<BR>Financial Officer and<BR>

Secretary<BR>(Principal Financial and<BR>Accounting Officer)</TD></TR>

</TABLE>







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Middleby - 10-Q quarterly report FY

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