Exhibit 1 EVERGREEN IRRIGATION PRODUCTS, INC. CURRENT INVENTORIES OCTOBER 15, 1998 Product description Current inventory Current inventory units $000 FY 1998 sales $000 Free controllers Series 150-4+8 283 12 15 Customer controllers Series 123-8 +11 68 8 12 Monitor controllers Series 176-11 +23 51 15 26 3/4"+1" valve Series 230 globe/angle in-line 4,430 46 78 1 "2" valve globe/angle in-line 281 6 62 Brass valves Series 216 384 4 7 Pop-up bodies 50,841 20 77 570 series nozzles 90,056 14 68 Stream rotors series 300 2,043 13 144 Rain pros series 320 1,782 12 26 Gear driven rotary series 600 1,086 10 22 Gear driven rotary series 620 681 21 39 Gear driven rotary series 640 2,627 81 194 Gear driven rotary series 670 973 36 180 Totals 298 950 Exhibit 2 CURRENT COMPUTER SYSTEM RULES For order quantity*: 2 AD 5 EOQ = ic A = cost of placing an order, $ - annual demand in units i = interest rate for holding inventory for a year as a proportion of the unit cost c = unit cost of the item, $/unit = EOQ economic order quantity For reorder point: R = average demand over the lead time + safety stock R is the reorder point where an order for more stock is placed Currently, a 12-week lead time is used for all items in setting the reorder point. *The current computer system uses a carrying cost I = 20% (10% cost of capital, 5% obsolescence, and 5% storage cost) and an ordering cost of $10 per order. Exhibit 3 DEMAND FOR FISCAL YEARS 1995-1998 6 Part #1-7287 Timing Motor With Gear Service Assembly (For Series 176 Monitor Controllers) Current Distributors Cost: Current Selling Price: $12.00 Unit sales $26.00 1995 1996 1997 30 19 22 1998 31 Current inventory = 9 units Reorder point = 16 units, EOQ = 15 units. Current Distributors Cost: $10.35 Series 230, 1" Valves Current Selling Price: $13.75 Unit sales 1995 1996 1997 1998 5210 3650 4441 5673 Current inventory = 4430 units Reorder point = 2070 units, EOQ = 214 units Current Distributors Cost: $301.46 Current Selling Price: $400.00 Unit sales Series 176, Monitor Controller 1995 1996 21 1997 1998 12 41 65 Current inventory = 51 units Reorder point = 22 units, EOQ = 3 units. Exhibit 4 SAMPLE PRODUCTS DESCRIPTIONS Monitor Controller Series 176 7 electro mechanical 200-3333 outdoor installation industrial and residential, golf course and agricultural LED programming display Easy-access replacement gearing Series 230 1.5 to 2 inch Plastic In-line valve Tough nylon housing Industrial and residential Globe valve for easy installation Steel reinforced solenoid Series 216 1.5 to 2 inch Brass In-line Valve brass casting with nylon inserts industrial and residential globe valve for easy installation steel reinforced solenoid corrosion resistant 8 Exhibit 5 IRRIGATION DIVISION FY 1989 STOCKING PROGRAM, TERMS FOR SOUTHERN DISTRIBUTORS Order placement 33% 1998 Forecast Oct. 15-Oct. 30 Shipping period Dating terms December and January 12 May 15 - net 12 June 15-net May and June 12 Sept. 15 - net Oct. 15-net 33% 1999 Forecast June 15-June 30 August and September - Nov. 15 net 1 Dec. 15 net 33% 1999 Forecast Feb. 15-Feb. 30 Exhibit 6 GALVESTON MARKET INFORMATION SFDHH SFDHH SFDHH $15-19M $20-24M $25-34M SFDHH $35+ Total SFDHH Total population 228,545 182,607 151,110 89,375 757,000 3,640,000 Number of golf courses: 158 Number of golf course holes: 2259 Irrigation potential market: (in purchases from Evergreen ) Small turf $403,830 Large turf 267,048 Parts 175,160 Number of cemeteries: 71 Number of parks: 14 Number of schools: 170 $846,038 Number of persons living in single family dwelling households (SFDHH). 2This is an estimate of the market size for Evergreen in the area. Small turf refers to residential installations while large turf refers to golf courses and other commercial installations. 0 Exhibit 7 INCOME STATEMENT (Fiscal years ending June 30) Net sales Cost of goods sold Gross Profit Expenses: 1996 $3,900,000 1997 1998 $3,500,000 $4,200,000 2,800,000 2,700,000 3,200,000 1,100,000 800,000 1,000,000 Selling expense 440,000 272,000 350,000 Operating expense 455,000 318,000 400,000 Fixed expense 95,000 100,000 115,000 Total expenses 990,000 690,000 865,000 Net profit from operation 110,000 110,000 135,000 Other expenses 75,000 60,000 85,000 Income 15,000 10,000 25,000 Net profit before taxes 50,000 60,000 75,000 Taxes 12,000 27,000 36,000 Net profit $ 38,000 $ 33,000 $ 39,000 Exhibit 8 10 BALANCE SHEET (Fiscal year-end June 30) 1996 1997 1998 Assets Cash $10,000 $35,000 $5,000 Accts. Receivable $492,000 $622,000 $647,000 Less doubtful accts. 17,000 22,000 22,000 Net accts. Receivable 475,000 600,000 625,000 Inventory 620,000 600,000 1,000,000 Total current assets 1,105,000 1,235,000 1,630,000 Prepaid expenses 30,000 30,000 20,000 Equipment (net of department) 35,000 40,000 45,000 Total fixed assets 65,000 75,000 65,000 Total assets 1,170,000 1,305,000 1,695,000 Liabilities Notes payable (to banks) 207,000 329,000 700,000 Current position of long-term liabilities 20,000 20,000 20,000 Total current liabilities 227,000 349,000 720,000 Long-term liabilities 160,000 140,000 120,000 Total liabilities 387,000 489,000 840,000 Capital stock 200,000 200,000 200,000 Retained earnings 583,000 616,000 655,000 Net worth 783,000 816,000 855,000 Total liabilities and net worth $1,170,000 $1,305,000 $1,695,000 Exhibit 9 FY 1998 DEPARTMENTAL ANALYSIS ($000) Consumer Total products Commercial Irrigation products products Parts Service Net sales $4,500 $1,800 $850 $950 $550 $50 Cost of goods sold 3,200 1,435 650 750 350 15 Gross profit 1,000 365 200 200 200 Gross profit (% sales) Ending inventory 23% 20% 24% 21% 36% $1,000 $275 $250 $295 $180 2; 35 70%