CMS Enhancements : IRVINE

Nature of Business: Makes computer accessories and mass computer storage subsystems. Total employees: 215 In Orange County: 185 Stock listing in The Times: On NASDAQ AS “CMS Enh� Ticker Symbol: “CME� Friday’s Stock Close: $3.625 One-week change: Up $.13 Analyst Review: “About a year and a half ago, the company expanded and went into the mass merchandising market with a Korean company, TriGem, selling personal computer systems at Price Club and Circuit City. But (company chairman) Jim Farooquee found that the supply lines were too long. Then there was the (personal computer) price war. Today, the company is back to its traditional business of selling value-added storage systems, like disk drives. Farooquee is going back to his roots. The company has its cost structure in line with volume, which led to a slight profit. Considering the money he has lost, that’s pretty good. The disk drive business is very volatile, but it has traditionally grown, even in bad times.� --Ian Gilson, analyst, L.H. Friend, Weinress & Frankson, Irvine SALES and PROFITS Dollar amounts in millions

1 Qtr. 1 Qtr. 1990 1991 1992 1991 1992 Sales 187.7 130.1 115.1 29.8 20.8 Profits 0.4 (8.5) (8.9) (.89) .051

Corporate Outlook: “Now we have returned to our core business, and have even gone a step further by focusing on the high-end, high-perfromance opportunities in the storage systems market. We recently signed a licensing agreement with IBM for the AnyBus translator that allows for computer upgrades regardless of new advances in PC processing technology. That should have a very positive impact on the company.� --Mike Rusert, vice president of marketing RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

FISCAL YEAR ENDING June 30 June 30 June 30 1 Qtr. 1990 1991 1992 1992 52-week high $17.00 $6.13 $5.13 $3.38 52-week low $4.50 $1.76 $1.50 $2.00 Book value per share $8.16 $5.79 $2.72 $5.48 Price per share $6.00 $2.38 $1.50 $3.50 Net earnings (loss) per share $0.13 ($2.89) ($3.04) ($0.30) Price-to-earnings ratio 46:1 N/A N/A N/A Average return on investor equity 1.5% N/A N/A N/A

FISCAL YEAR ENDING 1 Qtr. 1993 52-week high $2.13 52-week low $1.25 Book value per share $2.76 Price per share $1.88 Net earnings (loss) per share $0.02 Price-to-earnings ratio 94:1 Average return on investor equity 0.6%

For more information call or write, CMS Enhancements: 2722 Michelson Drive, Irvine, Calif. 92715. (714)222-6000. Source: CMS Enhancements Researched by TED JOHNSON / Los Angeles Times