Financial Forecast Assumptions
Tom's Machinery Co. Inc.
Multi-year Scenario #1
(Dollars and Shares in Thousands, Except Per Share Amounts)

Estimate   Forecast   12 Months 06/30/09   12 Months 06/30/10 12 Months 06/30/11 12 Months 06/30/12 12 Months 06/30/13 12 Months 06/30/14   Year-to-Year Change in Net Sales NA       Gross Margin % 32.4%       Operating Expenses as % of Net Sales 28.8%       Other Income (Expense) $(6)       Interest Rate on Borrowings NA       Interest Rate on Subordinated Debt NA       Income Tax Rate 41.7%       Cash $25       Number of Days Sales in Accounts Receivable 47.5       Number of Days Cost of Goods Sold in Inventory 97.2       Other Current Assets $6       Intangibles $7       Investments $0       Other Assets $13       Current Maturities $11       Number of Days Cost of Goods Sold in Accounts Payable 42.1       Number of Days Operating Expenses in Accrued Expenses 101.4       Taxes Payable $1       Other Current Obligations $0       Other Current Liabilities $0       Term Loan $38       Subordinated Debt $0       Other Long Term Obligations $20       Other Liabilities $0       Common Stock $0       Preferred Stock $0       Other Equity $0       Treasury Stock $0       Capital Expenditures (Net) NA       Dividends as % of Net Earnings 0.0%       Depreciation (Net) NA       Estimated Borrowing Base as a % of Accounts Receivable 80.0%       Estimated Borrowing Base as a % of Inventory 35.0%       Estimated Borrowing Base as a % of       Property, Plant and Equipment (Net) 50.0%       Common Shares Outstanding (Fully Diluted) 100     Glossary of Assumption terms. Save As New Scenario #2: