WORKSAFE INDUSTRIAL INC
10-Q, 1999-02-16
ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES
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                        SECURITIES & EXCHANGE COMMISSION

                              WASHINGTON, DC, 20459

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1998
                            COMMISSION FILE # 0-8027

                            WORKSAFE INDUSTRIES INC.

             (Exact name of registrant as specified in its charter)

             NEW YORK                                          11-1874010
(State or other jurisdiction of                             (Employer I.D.#)
 incorporation or organization)

              130 West 10th Street, Huntington Station, N.Y. 11746
              (Address of principal executive offices and zip code)

                                 (516) 427-1802
                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15 (d) of the  Exchange Act during the past 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_                     NO ___

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

         Class                             Outstanding at December 31, 1998

         (Common Stock, par value                   1,683,079
          $.12 per share)


                                        1

<PAGE>



                         PART I - FINANCIAL INFORMATION
                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                      December 31,     June 30,
                                                         1998            1998
                  ASSETS                              (Unaudited)

CURRENT ASSETS:
         Cash                                         $    59,137    $   223,125
         Accounts receivable - (less allowance
           for doubtful accounts of $26,800 at
           December 31, 1998 and $46,250 at
           June 30, 1998)                               3,312,333      3,393,608

         Inventories - (note 2 and note 6)              4,552,627      5,757,777

         Other current assets - (note 6)                2,900,872        692,595

         Net assets of discontinued operations          1,928,547      4,890,196

                  TOTAL CURRENT ASSETS                 12,753,516     14,957,301

PROPERTY, PLANT AND EQUIPMENT, net                      2,181,716      2,276,677

EXCESS OF COST OVER NET ASSETS ACQUIRED                   414,829        426,229
OTHER ASSETS                                              126,423         24,794

                  TOTAL ASSETS                        $15,476,484    $17,685,001







See accompanying notes.




                                        2

<PAGE>


                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                   December 31,      June 30,
                                                      1998             1998
                                                   (Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
         Loans payable - (note 6)                  $  8,002,243    $  8,189,842
         Current maturities of long-term debt           248,979         277,628
         Accounts payable                             3,106,167       4,384,580
         Accrued expenses                               301,962         395,860

                  TOTAL CURRENT LIABILITIES          11,659,351      13,247,910


LONG-TERM DEBT, less current maturities                 428,529         538,283

                  TOTAL LIABILITIES                  12,087,880      13,786,193

SHAREHOLDERS' EQUITY
         Preferred stock; $.01 par value;
           authorized 1,000,000 shares;
           no shares outstanding                             --              --
         Common stock, $.12 par value;
           authorized - 20,000,000  shares, issued
           and outstanding 1,683,079 shares
           in December 1998 and in June 1998            201,970         201,970
         Additional paid-in capital                   9,807,708       9,807,708
         (Deficit)                                   (6,621,074)     (6,110,870)

                  TOTAL SHAREHOLDERS' EQUITY          3,388,604       3,898,808



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY         $ 15,476,484    $ 17,685,001




See accompanying notes.


                                        3

<PAGE>


                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

                                                Three Months Ended December 31,
                                                     1998            1997
                                                  (Unaudited)    (Unaudited)

Net sales from continuing operations              $ 5,936,398    $ 6,010,137

Cost of sales                                       5,095,129      4,831,565

Gross profit                                          841,269      1,178,572

Selling, general & administrative expenses            746,560        808,844

Interest expense, net                                 121,244        143,708

Other income, net                                      (2,524)       (13,033)

Net (loss) income from continuing operations          (24,011)       239,053

Net (loss) from discontinued operations              (735,342)      (203,717)

Net gain from sale of discontinued operations         532,972             --

Net (loss) income                                    (226,381)        35,336

Opening (deficit)                                  (6,394,693)    (5,584,970)

Closing (deficit)                                 $(6,621,074)   $(5,549,634)

Income/(loss) per common share-
  Basic and diluted
  (Loss)/income from continuing operations        $      (.01)   $       .14
  (Loss) from discontinued operations                    (.44)          (.12)
  Gain from sale of discontinued operations               .32             --
  Net (loss) income                               $      (.13)   $       .02

Weighted average number of
  common shares outstanding
  Basic and diluted                                 1,683,079      1,683,079


See accompanying notes

                                        4

<PAGE>

                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT


                                                   Six Months Ended December 31,
                                                      1998            1997
                                                   (Unaudited)     (Unaudited)

Net sales from continuing operations               $ 11,604,334    $ 11,288,123

Cost of sales                                         9,875,883       9,086,084

Gross profit                                          1,728,451       2,202,039

Selling, general & administrative expenses            1,546,097       1,595,951

Interest expense, net                                   251,968         265,913

Other income, net                                       (15,175)        (29,616)

Net (loss) income from continuing operations            (54,439)        369,791

Net(loss) from discontinued operations                 (988,737)       (297,040)

Gain from sale of discontinued operations               532,972              --

Net (loss) income                                      (510,204)         72,751

Opening (deficit)                                    (6,110,870)     (5,622,385)

Closing (deficit)                                  $ (6,621,074)   $ (5,549,634)

Income/(loss) per common share-
  Basic and diluted
 (Loss)/income from continuing operations                 $(.03)           $.22
 (Loss) from discontinued operations                       (.59)           (.18)
  Gain from sale of discontinued operations                 .32              --
  Net(loss)/income                                        $(.30)           $.04

Weighted average number of
  common shares outstanding
  Basic                                               1,683,079       1,683,079
  Diluted                                             1,683,079       1,699,779

See accompanying notes.



                                        5

<PAGE>


                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                         Six Months Ended December 31
                                                             1998             1997
                                                          (Unaudited)      (Unaudited)
<S>                                                      <C>             <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss)/income from continuing operations           $    (54,439)   $    369,791
  Adjustments to reconcile net (loss) income 
    from continuing operations to net cash effect
    of operating activities:
       Depreciation and amortization                          132,640         113,970

  Net changes in operating assets and liabilities:
                Accounts receivable                            81,275        (409,270)
                Inventories                                 1,205,150      (1,318,029)
                Other current assets                           95,437        (128,685)
                Other assets                                    3,371          46,846
                Accounts payable                           (1,438,792)        518,889
                Accrued expenses                             (178,898)       (168,178)
                    Net cash (used in)
                      operating activities of
                      continuing operations                  (154,256)       (974,666)

CASH FLOWS FROM INVESTING ACTIVITIES:
         Capital expenditures                                 (71,421)       (140,415)

CASH FLOWS FROM FINANCING ACTIVITIES:
         Repayments of long-term debt                        (138,403)       (136,693)
         Borrowings under line of credit agreement         16,866,542      17,073,244
         Repayments under line of credit agreement        (17,054,141)    (15,370,577)

         Net cash (used in) provided from financing
         activities of continuing operations                 (326,002)      1,565,974

NET cash (used in) provided by continuing operations         (551,679)        450,893
NET cash provided by (used in) discontinued operations        387,691        (477,565)
NET decrease in cash                                         (163,988)        (26,672)

CASH, beginning of period                                     223,125         112,258
CASH, end of period                                      $     59,137    $     85,586

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Cash paid during the period for:
     Interest                                            $    522,636    $    387,374
     Income taxes                                        $        962    $      5,680
</TABLE>


See accompanying notes.


                                        6

<PAGE>



                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.   Basis of Presentation

In  the  opinion  of  the  management,   the  accompanying  unaudited  condensed
consolidated  financial  statements of Worksafe  Industries  Inc.  ("Worksafe"),
formerly Eastco Industrial Safety Corp., contain all adjustments  (consisting of
only normal  accruals)  necessary  to present  fairly the  consolidated  balance
sheets as of  December  31,  1998 and June 30,  1998  (audited)  and the related
statements of operations  and deficit and cash flows for each of the three month
and six month periods ended December 31, 1998 and 1997.

The results of operations for the three and six month periods ended December 31,
1998 and 1997 are not necessarily indicative of the results for the entire year.

The attached summarized  financial  information does not include all disclosures
required to be included in a complete  set of financial  statements  prepared in
conformity with generally accepted accounting principles.  Such disclosures were
included with the consolidated financial statements of Worksafe at June 30, 1998
and included in its annual report on Form 10-K. Such  statements  should be read
in conjunction with the data herein.

2.   Inventories of Continuing Operations 

                                              December 31,        June 30,
                                                 1998               1998

     Raw materials                            $1,418,766         $1,579,096
     Work-in-process                             623,188            802,011
     Finished goods                            2,510,673          3,376,670
     Total                                    $4,552,627         $5,757,777

3.   Litigation

Worksafe is a party to various asbestos  lawsuits alleging damages from exposure
to asbestos products sold by Worksafe. Refer to Part II, Other Information, Item
I "Legal  Proceedings"  in this  form  10-Q as well as  Worksafe's  Form 10-Q of
September  30,  1998  and  Note 11 to the June  30,  1998  Audited  Consolidated
Financial Statements regarding the asbestos litigation.

4.   Net Income Per Common Share

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings Per Share",  basic  earnings per common share amounts were computed by
dividing  net  earnings  by  the  weighted   average  number  of  common  shares
outstanding, excluding any potential dilution. Diluted earnings per common share
amounts are computed by reflecting potential dilution from the exercise of stock
options.  As there were no  dilutive  securities  for the  quarter and six month
ended December 31, 1998, no reconciliation  is presented  herein.  There were no
shares of common stock subject to stock options  included in the  computation of
diluted  earnings per share for the quarter and $16,700 for the six months ended
December 31, 1997.


                                        7

<PAGE>


5.   Comprehensive Income

     In the first  quarter  of  fiscal  1999,  Worksafe  adopted  SFAS No.  130,
"Reporting Comprehensive Income", which requires companies to report all changes
in equity during a period, except those resulting from investments by owners and
distributions to owners,  in a financial  statement for the period in which they
are  recognized.  Comprehensive  income  is the  total  of net  income  and  all
non-owner changes in equity (or other  comprehensive  income) such as unrealized
gains/losses  on securities  available-for-sale,  foreign  currency  translation
adjustments and minimum pension liability adjustments. Comprehensive income must
be reported  on the face of the annual  financial  statements  or in the case of
interim  reporting,  in the  footnotes  to the  financial  statements.  For  the
quarters  ended December 31, 1998 and 1997,  Worksafe's  operations did not give
rise to items includible in comprehensive income which were not already included
in net income. Therefore, Worksafe's comprehensive income is the same as its net
income for all periods presented.

6.   Discontinued Operations

Effective December 31, 1998,  Worksafe sold certain assets,  including inventory
of $1,494,000  and certain fixed assets of its  distribution  division to Arbill
Industries,  Inc.  ("Arbill").  As a result  of this  transaction,  the  Company
reported a gain of  approximately  $533,000,  after related costs, in the second
quarter  ended  December  31,  1998.  The  purchase  price for these  assets was
approximately $2,494,000,  not including payments for rent, open receivables and
miscellaneous other items. The proceeds of the transaction,  which were received
in January 1999,  except for $315,000  which will be paid over eighteen  months,
were used to reduce Worksafe's loans payable to Congress Financial  Corporation.
As a result of this  transaction,  the  operating  results of this division have
been classified as discontinued operations.

Summarized Financial Information for the Discontinued Operations is as follows:

                            Three Months Ended            Six Months Ended
                               December 31,                 December 31,

                          1998           1997           1998           1997

Net sales              $ 1,908,440    $ 2,093,289    $ 4,240,767    $ 4,524,544
Cost of sales            1,737,082      1,777,096      3,671,046      3,740,303
Gross profit               171,358        316,173        569,721        784,241
Expenses                   906,700        519,910      1,558,458      1,081,281
Net (loss)             $  (735,342)   $  (203,717)   $  (988,737)   $  (297,040)



                                        8

<PAGE>



                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
           FINANCIAL CONDITION AND CONSOLIDATED RESULTS OF OPERATIONS


Continuing Operations

Worksafe's  continuing  operations  now consist  entirely  of its  manufacturing
segment which produces disposable and reusable industrial apparel and protective
knit gloves.  Worksafe  maintains  facilities for  warehousing and production in
Puerto Rico, Alabama, Mexico (a contractor),  Texas,  California,  Louisiana and
Minnesota.

The accompanying  financial  statements have been restated to reflect the former
distribution  division as a discontinued  operation and Management's  Discussion
and Analysis discusses only the continuing  operations.  Worksafe sold its right
to the "Eastco" trade name and logo to Arbill  Industries,  Inc. and has changed
its name and its NASDAQ and Boston Stock Exchange stock ticket symbols, WRKS and
WSF, respectively, to reflect this change.

Results of Operations

Net sales for the three  months  ended  December  31,  1998 were  $5,937,000  as
compared to $6,010,000  for the three months ended December 31, 1997, a decrease
of 1.2%. Net sales for the six months ended  December 31, 1998 were  $11,604,000
compared with sales for the period ended  December 31, 1997 of  $11,288,000,  an
increase of 2.8%.

The overall  decrease in sales in this  quarter was mainly due to lower sales in
Puerto Rico.  In  addition,  due to a major  vendor's  raw  material  production
problem,  Worksafe was unable to produce finished  products to meet its customer
demand, thereby temporarily increasing its back order position. Glove sales were
up 2.9% for the quarter.

Worksafe's gross margin decreased to 14.2% for the second quarter of fiscal 1999
from 19.6% for the second  quarter in fiscal  1998 and the gross  margin for the
six months ended December 31, 1998 decreased to 14.9% from 19.5% for the similar
period in the prior year.  These  reductions are the  continuing  results of the
competitive  environment  in the  marketplace.  In a continued  effort to offset
lower margin levels,  Worksafe  increased  production  levels in Mexico at lower
costs for products previously produced in Alabama and Puerto Rico for both basic
and non-basic disposable industrial apparel.

Selling,  general and administrative expenses for the quarter ended December 31,
1998 were  approximately  $747,000 (or 12.6% of sales) compared to approximately
$809,000 (or 13.5% of sales) for the same period last year.  These  expenses for
the six months ended December 31, 1998 were  approximately  $1,546,000 (or 13.3%
of sales) as compared to  approximately  $1,596,000  (or 14.1% of sales) for the
same period in the prior year. These decreases as a percentage of sales were due
to continuing cost reductions.



                                        9

<PAGE>


Interest  expense was  approximately  $121,000 for the second  quarter of fiscal
1999, a decrease of  approximately  $23,000 when compared to the same quarter of
fiscal 1998. For the six months ended December 31, 1998 the interest expense was
approximately  $252,000 compared to approximately $266,000 in the same period in
the prior  year.  These  decreases  were  principally  due to the lower  average
borrowings from Congress Financial Corporation for the manufacturing division.

Liquidity and Capital Resource

Worksafe  had  working  capital   inclusive  of  net  assets  from  discontinued
operations  as of December 31, 1998 of  approximately  $1,094,000 as compared to
approximately  $1,709,000  as  of  June  30,  1998.  A  substantial  portion  of
Worksafe's  working  capital  consists  of  inventory,  which was  approximately
$4,553,000   and  $5,758,000  as  of  December  31,  1998  and  June  30,  1998,
respectively.  The distribution division sold to Arbill was required to maintain
substantial  inventories of its numerous  products in order to meet the needs of
customers  who required  products on short  notice.  Although the  manufacturing
division maintains a minimum level of inventory for its basic products, its back
order  position will keep  inventory at lower levels,  thereby having a positive
effect on liquidity. Worksafe believes that its current working capital position
will be sufficient to satisfy its needs for the remainder of the current  fiscal
year.

The amounts  outstanding under Worksafe's loan agreement with Congress Financial
Corporation at December 31 and June 30, 1998 were  approximately  $8,002,000 and
$8,190,000,  respectively.  The Company had $37,000  available  for borrowing at
December 31, 1998.

Net cash used in operating  activities was principally a result of a decrease in
accounts payable and accrued expenses,  which was partially offset by a decrease
in inventories.  Cash flows used in investing activities was for the purchase of
property,  plant and  equipment.  Cash flows used in financing  activities  were
principally from Worksafe's loan agreement with Congress Financial  Corporation.
During January 1999,  Worksafe  received  proceeds from Arbill of  approximately
$2.1 million which was used to reduce its loan with Congress.

At the present time, Worksafe,  together with a variety of defendants,  is party
to various  asbestos-related  lawsuits involving a number of plaintiffs alleging
damages from exposure to asbestos products sold by Worksafe. Worksafe may become
a party to additional  asbestos-related  actions in the future. Worksafe is also
party to other non-asbestos-related  litigation.  Worksafe cannot, at this time,
determine  the outcome of these  uncertainties.  To date,  Worksafe's  insurance
coverage has been adequate and Worksafe's costs relative to asbestos  litigation
has not been material.

Year 2000

Worksafe does not believe,  based upon its internal  reviews and other  factors,
that  future  external  and  internal  costs  to be  incurred  relating  to  the
modification of internal-use software for the Year 2000 will have a



                                       10

<PAGE>


material  effect on  Worksafe's  results of  operations  or financial  position.
Although Worksafe can not control the efforts of the third parties with which it
interfaces,  it does not currently anticipate that there will be any significant
disruption of its ability to transact business.

Risks and Other Considerations

Reference  is made to  "Risks  and  Other  Considerations"  set forth in Item 7,
Management's  Discussion and Analysis in Worksafe's Form 10-K for the year ended
June 30, 1998, which is incorporated herein by reference thereto.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

During the quarter ended December 31, 1998,  approximately  517 asbestos actions
involving  approximately  918 plaintiffs  were instituted  against  Worksafe and
Puerto Rico Safety Equipment Corporation. All of these actions have been brought
by one firm of  attorneys.  The actions are all pending in the Supreme  Court of
the State of New York  within the City of New York and  involve a  multitude  of
defendants and are either actions, pursuant to standard complaints, for personal
injury or wrongful  death setting forth a number of causes of action each in the
amount of $10,000,000  for  compensatory  damages and  $10,000,000  for punitive
damages.  All of the foregoing  actions have been  submitted to  Worksafe's  and
Puerto Rico Safety Equipment  Corporation's  insurance  carriers for defense.  A
schedule of these cases is annexed hereto as Exhibit 99.06.2.  Reference is also
made to  Worksafe's  Form 10-K for June 30, 1998 and its Form 10-Q for September
30, 1998 regarding asbestos actions against Worksafe.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The  following  items  were  approved  at the  annual  shareholders'  meeting on
December 16, 1998 by the votes as indicated:

A. The  following  directors  were  elected by the votes as indicated to serve a
term continuing through the Annual Meeting following the fiscal year ending June
30,  1999  and  until  the  election  and   qualification  of  their  respective
successors:

                             Against                            For

Alan E. Densen              1,290,960                          4,110
Lawrence Densen             1,290,957                          4,113
Anthony P. Towell           1,290,960                          4,110



                                       11

<PAGE>


B.  Proposal to approve the  amendment to Article  first of the  Certificate  of
Incorporation to effectuate a change of name to Worksafe Industries Inc.

 FOR:  1,290,706      AGAINST:   4,113         ABSTAIN:    1

C. The appointment of Arthur Andersen,  LLP,  Certified Public  Accountants,  as
independent auditors for the fiscal year ended June 30, 1999 was approved by
the vote as indicated.

 FOR: 1,294,462       AGAINST:   112         ABSTAIN:      4

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

(A)       Exhibits

          3.01.3            Certificate of Amendment to Certificate of
                            Incorporation Filed December 17, 1998

         99.06.0            Schedule of asbestos  actions filed against Worksafe
                            and Puerto Rico Safety Equipment  Corporation during
                            the quarter ended
                            December 31, 1998

(B) On January 26,  1999 a Form 8-K under Item 2 for the sale of certain  assets
of the  registrant's  distribution  business on January 11, 1999,  effective the
close of  business  on  December  31,  1998 and  under  Item 5 with  respect  to
Worksafe's  consummation  of Amendment N. 9 to Worksafe's  financing  agreements
with Congress. A Pro-Forma  Consolidation Balance Sheet as at September 30, 1998
and Pro-Forma  Consolidation Statement of Operations for the year ended June 30,
1998 and three months ended September 30, 1998 were included under Item 7.




                                       12

<PAGE>



                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  had July  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

Dated: February 12, 1999

                                                 WORKSAFE INDUSTRIES INC.

                                                 By: /s/ LAWRENCE DENSEN
                                                  LAWRENCE DENSEN, PRESIDENT
                                                  & CHIEF EXECUTIVE OFFICER


                                                By: /s/ ARTHUR J. WASSERSPRING
                                                  ARTHUR J. WASSERSPRING,
                                                  VICE PRESIDENT OF FINANCE/
                                                  CHIEF FINANCIAL OFFICER





                                       13





                            CERTIFICATE OF AMENDMENT
                                       OF
                          CERTIFICATE OF INCORPORATION
                                       OF
                         EASTCO INDUSTRIAL SAFETY CORP.

                Under Section 805 of the Business Corporation Law
                            of the State of New York

     Pursuant to the provisions of Section 805 of the Business  Corporation Law,
the  undersigned,  being the president and secretary of the  corporation  hereby
certify:

FIRST: The name of the corporation is: EASTCO INDUSTRIAL SAFETY CORP.

SECOND:  The Certificate of Incorporation was filed by the Secretary of State of

                                       15

<PAGE>


New York on the 15th day of May, 1958 under the name of Glofane Co., Inc.

THIRD:  The  amendment  to the  Certificate  of  Incorporation  effected by this
Certificate is as follows:  Paragraph FIRST of the Certificate of Incorporation,
relating to the name of the corporation, is hereby amended to read as follows:

"FIRST: The name of the corporation is: WORKSAFE INDUSTRIES INC."

FOURTH: That the amendment to the Certificate of Incorporation was authorized by
an  affirmative  vote of the holders of at least a majority  of all  outstanding
shares entitled to vote on an amendment to the Certificate of Incorporation at a
meeting of shareholders.  Said authorization being subsequent to the affirmative
vote of the Board of Directors.

     IN  WITNESS  WHEREOF,  we  hereunto  sign our  names  and  affirm  that the
statements made herein are true under the penalties of perjury, this 16th day of
December , 1998.

                                                /s/ Lawrence Densen
                                                Lawrence Densen, President

                                                /s/ Anthony P. Towell
                                                Anthony P. Towell, Secretary

                                       16



<TABLE> <S> <C>

<ARTICLE>                     5
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                              JUN-30-1999
 <PERIOD-END>                                  DEC-31-1999
<CASH>                                         59,137
<SECURITIES>                                   0
<RECEIVABLES>                                  3,339,133
<ALLOWANCES>                                   (26,800)
<INVENTORY>                                    4,552,627
<CURRENT-ASSETS>                               12,753,516
<PP&E>                                         3,525,879
<DEPRECIATION>                                 (1,344,163)
<TOTAL-ASSETS>                                 15,476,484
<CURRENT-LIABILITIES>                          11,659,351
<BONDS>                                        0
                          0
                                    0
<COMMON>                                       201,970
<OTHER-SE>                                     3,388,604
<TOTAL-LIABILITY-AND-EQUITY>                   15,476,484
<SALES>                                        11,604,334
<TOTAL-REVENUES>                               11,604,334
<CGS>                                          9,875,883
<TOTAL-COSTS>                                  9,875,883
<OTHER-EXPENSES>                               1,530,922
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             251,969
<INCOME-PRETAX>                                (54,439)
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            (54,439)
<DISCONTINUED>                                 (988,737)
<EXTRAORDINARY>                                532,972
<CHANGES>                                      0
<NET-INCOME>                                   (510,204)
<EPS-PRIMARY>                                  (.30)
<EPS-DILUTED>                                  (.30)
        

</TABLE>


                                 EXHIBIT 99.06.0

SCHEDULE OF PENDING ASBESTOS LITIGATION as of December 31, 1998

o    The actions set forth below in New York are in the Supreme Court,  New York
     County  (unless  otherwise  indicated).  The  actions  set forth a standard
     complaint  containing  various causes of action  including causes of action
     seeking  $10,000,000 in  compensatory  damages and  $10,000,000 in punitive
     damages on behalf of each plaintiff.

PLAINTIFFS     Number of  plaintiffs is as per inception of case or as otherwise
               indicated.

DEFENDANTS     Number of  defendants  excludes  John Does and  unnamed  parties.
               Certain  named  defendants are  successors to other  entities not
               included in the count.  No  representation  is made as to whether
               the named  defendants  were all served or are still  party to the
               actions as to whether  additional  defendants  have been  brought
               into the  actions.  No  representation  is given as to whether or
               not all or any of the  defendants  are still engaged in business,
               have  insurance,  or  their  ability  to pay any  claim  judgment
               against them.


<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
ABBONDANZA                 10/30/98         NY                EASTCO-PR             2               77
ABIS                       10/30/98         NY                EASTCO-PR             2               77
ACHTZIGER                  10/30/98         NY                EASTCO-PR             2               77
ACKLEY                     10/30/98         NY                EASTCO-PR             2               77
AFIF                       10/30/98         NY                EASTCO-PR             2               77
AIRD                       10/30/98         NY                EASTCO-PR             2               77
ALDERISIO                  10/30/98         NY                EASTCO-PR             2               77
ALI                        10/30/98         NY                EASTCO-PR             2               77
ALLAN                      10/30/98         NY                EASTCO-PR             2               77
ALLEN, CLAUDE              10/30/98         NY                EASTCO-PR             1               77
ALLEN, DOUG                10/30/98         NY                EASTCO-PR             2               77
ALLEN, RAY                 10/30/98         NY                EASTCO-PR             2               77
ALLES                      10/30/98         NY                EASTCO-PR             2               77
ALMOZARA                   10/30/98         NY                EASTCO-PR             2               77
ALTMAN                     10/30/98         NY                EASTCO-PR             2               77
ANDERSON, BRU              10/30/98         NY                EASTCO-PR             2               77
ANDERSON, IRV              10/30/98         NY                EASTCO-PR             2               77
ANDREASSI                  10/30/98         NY                EASTCO-PR             2               77
ANNIS                      10/30/98         NY                EASTCO-PR             2               77
ANSELMI                    10/30/98         NY                EASTCO-PR             2               77
ANTICOLI                   10/30/98         NY                EASTCO-PR             2               77
ANTONICELLI                10/30/98         NY                EASTCO-PR             2               77
ARNOLD                     10/30/98         NY                EASTCO-PR             2               77
ASARO                      10/30/98         NY                EASTCO-PR             1               77
ATTIA                      10/30/98         NY                EASTCO-PR             2               77
AUSTIN                     10/30/98         NY                EASTCO-PR             2               77
AVESGTO                    10/30/98         NY                EASTCO-PR             2               77
BAETENS                    10/30/98         NY                EASTCO-PR             2               77
BAETZHOLD                  10/30/98         NY                EASTCO-PR             2               77
BAILIS                     10/30/98         NY                EASTCO-PR             2               77
BAINE                      10/30/98         NY                EASTCO-PR             2               77
BAKER,CAS                  10/30/98         NY                EASTCO-PR             2               77
BAKER, ZANE                10/30/98         NY                EASTCO-PR             2               77
BAKKER                     10/30/98         NY                EASTCO-PR             2               77
BALBIERZ                   10/30/98         NY                EASTCO-PR             2               77
BALL                       10/30/98         NY                EASTCO-PR             1               77
BALOGH                     10/30/98         NY                EASTCO-PR             2               77
</TABLE>




<PAGE>



<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
BALZARINI                  10/30/98         NY                EASTCO-PR             2               77
BARBATO                    10/30/98         NY                EASTCO-PR             2               77
BARBERI                    10/30/98         NY                EASTCO-PR             1               77
BARLETTE                   10/30/98         NY                EASTCO-PR             2               77
BARLOW                     10/30/98         NY                EASTCO-PR             2               77
BARRY                      10/30/98         NY                EASTCO-PR             1               77
BART                       10/30/98         NY                EASTCO-PR             1               77
BARTERS                    10/30/98         NY                EASTCO-PR             1               77
BARTHMARE                  10/30/98         NY                EASTCO-PR             1               77
BARTLETT                   10/30/98         NY                EASTCO-PR             2               77
BARTOLOTTA                 10/30/98         NY                EASTCO-PR             2               77
BARTSCH                    10/30/98         NY                EASTCO-PR             1               77
BAUER                      10/30/98         NY                EASTCO-PR             2               77
BEADLE                     10/30/98         NY                EASTCO-PR             2               77
BEALIN                     10/30/98         NY                EASTCO-PR             2               77
BEERS                      10/30/98         NY                EASTCO-PR             1               77
BELLEISLE                  10/30/98         NY                EASTCO-PR             2               77
BELLINI                    10/30/98         NY                EASTCO-PR             1               77
BENCICH                    10/30/98         NY                EASTCO-PR             2               77
BENDER                     10/30/98         NY                EASTCO-PR             2               77
BENEVILE                   10/30/98         NY                EASTCO-PR             2               77
BENJAMIN                   10/30/98         NY                EASTCO-PR             1               77
BENN                       10/30/98         NY                EASTCO-PR             2               77
BENNE                      10/30/98         NY                EASTCO-PR             2               77
BENWARE                    10/30/98         NY                EASTCO-PR             2               77
BERGER                     10/30/98         NY                EASTCO-PR             2               77
BERGHORN                   10/30/98         NY                EASTCO-PR             2               77
BERNARD                    10/30/98         NY                EASTCO-PR             2               77
BERNATH                    10/30/98         NY                EASTCO-PR             2               77
BERTANI                    10/30/98         NY                EASTCO-PR             2               77
BEST                       10/30/98         NY                EASTCO-PR             2               77
BICKELL                    10/30/98         NY                EASTCO-PR             1               77
BIENDUGA                   10/30/98         NY                EASTCO-PR             2               77
BIERWITH                   10/30/98         NY                EASTCO-PR             1               77
BIGAJ                      10/30/98         NY                EASTCO-PR             2               77
BIGHAM                     10/30/98         NY                EASTCO-PR             2               77
BIHARY                     10/30/98         NY                EASTCO-PR             2               77
BILOWUS                    10/30/98         NY                EASTCO-PR             2               77
BIRO                       10/30/98         NY                EASTCO-PR             2               77
BISHOP                     10/30/98         NY                EASTCO-PR             2               77
BLACHA                     10/30/98         NY                EASTCO-PR             2               77
BLAIR                      10/30/98         NY                EASTCO-PR             1               77
BLANDO                     10/30/98         NY                EASTCO-PR             1               77
BLANKENBAKE                10/30/98         NY                EASTCO-PR             2               77
BLOSE                      10/30/98         NY                EASTCO-PR             2               77
BOEDOER                    10/30/98         NY                EASTCO-PR             1               77
BOLTON                     10/30/98         NY                EASTCO-PR             2               77
BONANNO                    10/30/98         NY                EASTCO-PR             1               77
BONFESSUTO                 10/30/98         NY                EASTCO-PR             2               77
BORELLI                    10/30/98         NY                EASTCO-PR             2               77
BORGESE                    10/30/98         NY                EASTCO-PR             2               77
</TABLE>



                         

<PAGE>


<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
BORMAN                     10/30/98         NY                EASTCO-PR             2               77
BOROSKI                    10/30/98         NY                EASTCO-PR             2               77
BORRELLI                   10/30/98         NY                EASTCO-PR             2               77
BOUNDY                     10/30/98         NY                EASTCO-PR             2               77
BOWDEN                     10/30/98         NY                EASTCO-PR             2               77
BOWERS                     10/30/98         NY                EASTCO-PR             2               77
BOYARSKI                   10/30/98         NY                EASTCO-PR             2               77
BRACEWELL                  10/30/98         NY                EASTCO-PR             2               77
BRADISH                    10/30/98         NY                EASTCO-PR             2               77
BRADLEY                    10/30/98         NY                EASTCO-PR             2               77
ADAMS                      11/16/98         NY                EASTCO-PR             2               78
ANDREW                     11/16/98         NY                EASTCO-PR             2               78
APPLER                     11/16/98         NY                EASTCO-PR             2               78
ASBOTH                     11/16/98         NY                EASTCO-PR             2               78
AYERS                      11/16/98         NY                EASTCO-PR             2               78
BANDISH                    11/16/98         NY                EASTCO-PR             2               78
BANK                       11/16/98         NY                EASTCO-PR             2               78
BARCI                      11/16/98         NY                EASTCO-PR             2               78
BARGNESI                   11/16/98         NY                EASTCO-PR             2               78
BARONE                     11/16/98         NY                EASTCO-PR             2               78
BASEL                      11/16/98         NY                EASTCO-PR             2               78
BASILE,RALPH               11/16/98         NY                EASTCO-PR             1               78
BASILE,ROB                 11/16/98         NY                EASTCO-PR             2               78
BENEDICT                   11/16/98         NY                EASTCO-PR             2               78
BLANKESLEE                 11/16/98         NY                EASTCO-PR             2               78
BOBKO                      11/16/98         NY                EASTCO-PR             1               78
BREITBECK                  11/16/98         NY                EASTCO-PR             2               78
BRENNAN, BRI               11/16/98         NY                EASTCO-PR             2               78
BRENNAN, JAM               11/16/98         NY                EASTCO-PR             2               78
BRENNAN, VIN               11/16/98         NY                EASTCO-PR             2               78
BROCKLER                   11/16/98         NY                EASTCO-PR             2               78
BRODKA                     11/16/98         NY                EASTCO-PR             2               78
BROUGHTON                  11/16/98         NY                EASTCO-PR             2               78
BROWN, DON                 11/16/98         NY                EASTCO-PR             1               78
BROWN, EUG                 11/16/98         NY                EASTCO-PR             2               78
BROWN, NORM                11/16/98         NY                EASTCO-PR             2               78
BROWN, ROB                 11/16/98         NY                EASTCO-PR             2               78
BROWN, STEW                11/16/98         NY                EASTCO-PR             2               78
BROWN, WILL                11/16/98         NY                EASTCO-PR             2               78
BROWNING                   11/16/98         NY                EASTCO-PR             2               78
BRUCE                      11/16/98         NY                EASTCO-PR             2               78
BRUEN                      11/16/98         NY                EASTCO-PR             2               78
BRUGNOLI                   11/16/98         NY                EASTCO-PR             2               78
BRUNO, ERN                 11/16/98         NY                EASTCO-PR             2               78
BRUNO, RICH                11/16/98         NY                EASTCO-PR             2               78
BRYAN                      11/16/98         NY                EASTCO-PR             2               78
BRYANT                     11/16/98         NY                EASTCO-PR             2               78
BUCELATO                   11/16/98         NY                EASTCO-PR             2               78
BUCHINGER                  11/16/98         NY                EASTCO-PR             2               78
BUERKERT                   11/16/98         NY                EASTCO-PR             1               78
BUGAY                      11/16/98         NY                EASTCO-PR             1               78
</TABLE>



<PAGE>


<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
BULLUCK                    11/16/98         NY                EASTCO-PR             2               78
BURCH                      11/16/98         NY                EASTCO-PR             2               78
BURGIO                     11/16/98         NY                EASTCO-PR             2               78
BURKE                      11/16/98         NY                EASTCO-PR             2               78
BURLY                      11/16/98         NY                EASTCO-PR             1               78
BURNS                      11/16/98         NY                EASTCO-PR             2               78
BURR                       11/16/98         NY                EASTCO-PR             2               78
BUSSANICH                  11/16/98         NY                EASTCO-PR             1               78
BUTLER                     11/16/98         NY                EASTCO-PR             1               78
BYRNE                      11/16/98         NY                EASTCO-PR             2               78
CABER                      11/16/98         NY                EASTCO-PR             2               78
CADIZ                      11/16/98         NY                EASTCO-PR             2               78
CAFICI                     11/16/98         NY                EASTCO-PR             2               78
CAIAZZO                    11/16/98         NY                EASTCO-PR             2               78
CAIOLA                     11/16/98         NY                EASTCO-PR             2               78
CALABRESE                  11/16/98         NY                EASTCO-PR             2               78
CALANDRA                   11/16/98         NY                EASTCO-PR             2               78
CALDARARO                  11/16/98         NY                EASTCO-PR             2               78
CALDIERE                   11/16/98         NY                EASTCO-PR             2               78
CALI                       11/16/98         NY                EASTCO-PR             2               78
CALLAHAN, FRA              11/16/98         NY                EASTCO-PR             2               78
CALLAHAN, KAT              11/16/98         NY                EASTCO-PR             1               78
CAMERON                    11/16/98         NY                EASTCO-PR             2               78
CAMPBELL                   11/16/98         NY                EASTCO-PR             2               78
CANAVAN                    11/16/98         NY                EASTCO-PR             2               78
CANN                       11/16/98         NY                EASTCO-PR             2               78
CANNELL                    11/16/98         NY                EASTCO-PR             1               78
CANTENA                    11/16/98         NY                EASTCO-PR             2               78
CANTWELL                   11/16/98         NY                EASTCO-PR             2               78
CAPASSO                    11/16/98         NY                EASTCO-PR             2               78
CAPONE                     11/16/98         NY                EASTCO-PR             2               78
CARABELLO                  11/16/98         NY                EASTCO-PR             2               78
CARACCIOLO                 11/16/98         NY                EASTCO-PR             2               78
CARDARELLI                 11/16/98         NY                EASTCO-PR             2               78
CARDINALE                  11/16/98         NY                EASTCO-PR             2               78
CARLEY                     11/16/98         NY                EASTCO-PR             2               78
CARLSON                    11/16/98         NY                EASTCO-PR             2               78
CARMICHAEL                 11/16/98         NY                EASTCO-PR             2               78
CARPENTER                  11/16/98         NY                EASTCO-PR             2               78
CARR                       11/16/98         NY                EASTCO-PR             1               78
CARROLL                    11/16/98         NY                EASTCO-PR             2               78
CARSALINI                  11/16/98         NY                EASTCO-PR             1               78
CARSTENSEN                 11/16/98         NY                EASTCO-PR             2               78
CASEY                      11/16/98         NY                EASTCO-PR             2               78
CASH                       11/16/98         NY                EASTCO-PR             1               78
CASLIN                     11/16/98         NY                EASTCO-PR             1               78
CASSIDY                    11/16/98         NY                EASTCO-PR             2               78
CASTERLINE                 11/16/98         NY                EASTCO-PR             2               78
CASTLE                     11/16/98         NY                EASTCO-PR             2               78
CASTRONOVO                 11/16/98         NY                EASTCO-PR             2               78
CATONE                     11/16/98         NY                EASTCO-PR             1               78
</TABLE>




<PAGE>


<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
CAVANAGH                   11/16/98         NY                EASTCO-PR             2               78
CECCO                      11/16/98         NY                EASTCO-PR             2               78
CEHULIC                    11/16/98         NY                EASTCO-PR             2               78
CHAMBERS                   11/16/98         NY                EASTCO-PR             1               78
CHANDLER                   11/16/98         NY                EASTCO-PR             2               78
CHARLES                    11/16/98         NY                EASTCO-PR             1               78
CHEATHEM                   11/16/98         NY                EASTCO-PR             1               78
CHELLA                     11/16/98         NY                EASTCO-PR             2               78
BOWERS                     11/30/98         NY                EASTCO-PR             1               76
BOYAGIAN                   11/30/98         NY                EASTCO-PR             2               76
CHELSTOWSKI                11/30/98         NY                EASTCO-PR             2               76
CHIARELLI                  11/30/98         NY                EASTCO-PR             2               76
CHILLEMI                   11/30/98         NY                EASTCO-PR             2               76
CHING                      11/30/98         NY                EASTCO-PR             2               76
CHINLOY                    11/30/98         NY                EASTCO-PR             2               76
CHMIELOWIEC                11/30/98         NY                EASTCO-PR             2               76
CHRISTENSEN                11/30/98         NY                EASTCO-PR             2               76
CIBOROWSKI                 11/30/98         NY                EASTCO-PR             2               76
CLARK, JOHN                11/30/98         NY                EASTCO-PR             2               76
CLARK, VIN                 11/30/98         NY                EASTCO-PR             2               76
CLARK, WILL                11/30/98         NY                EASTCO-PR             2               76
CLARKE, JOHN               11/30/98         NY                EASTCO-PR             2               76
CLARKE, OSW                11/30/98         NY                EASTCO-PR             1               76
CLEAR                      11/30/98         NY                EASTCO-PR             2               76
CLINTON                    11/30/98         NY                EASTCO-PR             1               76
CLOUTHEIR                  11/30/98         NY                EASTCO-PR             2               76
CODAIR                     11/30/98         NY                EASTCO-PR             2               76
COLE, JEAN                 11/30/98         NY                EASTCO-PR             1               76
COLE, ROB                  11/30/98         NY                EASTCO-PR             2               76
COLEMAN                    11/30/98         NY                EASTCO-PR             1               76
COLITTO                    11/30/98         NY                EASTCO-PR             2               76
COLLINS                    11/30/98         NY                EASTCO-PR             2               76
COLOMBO                    11/30/98         NY                EASTCO-PR             1               76
COMITTO                    11/30/98         NY                EASTCO-PR             1               76
CONN                       11/30/98         NY                EASTCO-PR             1               76
CONNELL                    11/30/98         NY                EASTCO-PR             2               76
CONNELLY                   11/30/98         NY                EASTCO-PR             2               76
CONNOLLY                   11/30/98         NY                EASTCO-PR             1               76
CONRAD, HER                11/30/98         NY                EASTCO-PR             1               76
CONRAD, WILL               11/30/98         NY                EASTCO-PR             2               76
CONROY, WILL               11/30/98         NY                EASTCO-PR             2               76
CONWAY                     11/30/98         NY                EASTCO-PR             2               76
COOK                       11/30/98         NY                EASTCO-PR             1               76
COOLEY                     11/30/98         NY                EASTCO-PR             2               76
CORCORAN                   11/30/98         NY                EASTCO-PR             1               76
CORMIER                    11/30/98         NY                EASTCO-PR             2               76
CORRA                      11/30/98         NY                EASTCO-PR             2               76
CORSARO                    11/30/98         NY                EASTCO-PR             2               76
CORVIGNO                   11/30/98         NY                EASTCO-PR             2               76
COSTANZO                   11/30/98         NY                EASTCO-PR             2               76
COX                        11/30/98         NY                EASTCO-PR             1               76
</TABLE>


<PAGE>


<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
COYLE                      11/30/98         NY                EASTCO-PR             2               76
COYNE                      11/30/98         NY                EASTCO-PR             1               76
COZZOLINO                  11/30/98         NY                EASTCO-PR             2               76
CREVATIN                   11/30/98         NY                EASTCO-PR             2               76
CROCKETT                   11/30/98         NY                EASTCO-PR             2               76
CSENDON                    11/30/98         NY                EASTCO-PR             2               76
CUILLEN                    11/30/98         NY                EASTCO-PR             1               76
CULVER                     11/30/98         NY                EASTCO-PR             1               76
CUMMINGS                   11/30/98         NY                EASTCO-PR             2               76
CUNNEEN                    11/30/98         NY                EASTCO-PR             1               76
CURELLA                    11/30/98         NY                EASTCO-PR             2               76
CURLEY                     11/30/98         NY                EASTCO-PR             2               76
CURRAN, JOH                11/30/98         NY                EASTCO-PR             2               76
CURRAN, VIN                11/30/98         NY                EASTCO-PR             2               76
CUTHBERT                   11/30/98         NY                EASTCO-PR             1               76
CUTRONA                    11/30/98         NY                EASTCO-PR             2               76
CZARNECKI                  11/30/98         NY                EASTCO-PR             2               76
CZERWIEC                   11/30/98         NY                EASTCO-PR             1               76
DAMBROSIO, JR.             11/30/98         NY                EASTCO-PR             2               76
DAMBROSIO, SR.             11/30/98         NY                EASTCO-PR             2               76
DAGOWICH                   11/30/98         NY                EASTCO-PR             2               76
DALTON                     11/30/98         NY                EASTCO-PR             1               76
DALY                       11/30/98         NY                EASTCO-PR             2               76
DANIELS                    11/30/98         NY                EASTCO-PR             1               76
DANZI                      11/30/98         NY                EASTCO-PR             2               76
DASCOLI                    11/30/98         NY                EASTCO-PR             2               76
DAUNCE                     11/30/98         NY                EASTCO-PR             2               76
DAVIERO                    11/30/98         NY                EASTCO-PR             2               76
DAVIS, FRED                11/30/98         NY                EASTCO-PR             2               76
DAVIS, KER                 11/30/98         NY                EASTCO-PR             2               76
DAVIS, LEO                 11/30/98         NY                EASTCO-PR             1               76
DAY, HAROLD                11/30/98         NY                EASTCO-PR             2               76
DEANE                      11/30/98         NY                EASTCO-PR             2               76
DEANGELIS                  11/30/98         NY                EASTCO-PR             2               76
DEATS                      11/30/98         NY                EASTCO-PR             2               76
DECANDIA                   11/30/98         NY                EASTCO-PR             2               76
DECKER                     11/30/98         NY                EASTCO-PR             2               76
DEGANIS                    11/30/98         NY                EASTCO-PR             2               76
DEGEORGE                   11/30/98         NY                EASTCO-PR             2               76
DEGEORGIA                  11/30/98         NY                EASTCO-PR             2               76
DEJESUS                    11/30/98         NY                EASTCO-PR             2               76
DELABIO                    11/30/98         NY                EASTCO-PR             2               76
DELBEL                     11/30/98         NY                EASTCO-PR             2               76
DELELLIS                   11/30/98         NY                EASTCO-PR             1               76
DELOSSANTOS                11/30/98         NY                EASTCO-PR             2               76
DELUCA                     11/30/98         NY                EASTCO-PR             2               76
DEMARINIS                  11/30/98         NY                EASTCO-PR             2               76
DEMERS                     11/30/98         NY                EASTCO-PR             1               76
DEMIDIO                    11/30/98         NY                EASTCO-PR             2               76
DEMINO                     11/30/98         NY                EASTCO-PR             2               76
DEPRETA                    11/30/98         NY                EASTCO-PR             1               76
</TABLE>




<PAGE>

<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
DERKOWSKI                  11/30/98         NY                EASTCO-PR             1               76
DEVITA                     11/30/98         NY                EASTCO-PR             2               76
DEVITO                     11/30/98         NY                EASTCO-PR             2               76
DEVITO                     11/30/98         NY                EASTCO-PR             2               76
DEVLIN                     11/30/98         NY                EASTCO-PR             1               76
DEYETTE                    11/30/98         NY                EASTCO-PR             2               76
DIANGLEO                   11/30/98         NY                EASTCO-PR             2               76
DIAZ                       11/30/98         NY                EASTCO-PR             2               76
DICIOCCIO                  11/30/98         NY                EASTCO-PR             2               76
DIGUISEPPI                 11/30/98         NY                EASTCO-PR             2               76
DIVITO                     11/30/98         NY                EASTCO-PR             1               76
FINE                       11/30/98         NY                EASTCO-PR             2               76
HERTEL                     11/30/98         NY                EASTCO-PR             1               76
LAINO                      11/30/98         NY                EASTCO-PR             2               76
LANDAU                     11/30/98         NY                EASTCO-PR             2               76
MANEELY                    11/30/98         NY                EASTCO-PR             1               76
MCFADDEN                   11/30/98         NY                EASTCO-PR             2               76
NAPOLITANO                 11/30/98         NY                EASTCO-PR             1               76
OSTERHOUDT                 11/30/98         NY                EASTCO-PR             2               76
PETTINELLI                 11/30/98         NY                EASTCO-PR             2               76
SAUER                      11/30/98         NY                EASTCO-PR             2               76
SHIVELY                    11/30/98         NY                EASTCO-PR             2               76
SMITH                      11/30/98         NY                EASTCO-PR             1               76
VENTRE                     11/30/98         NY                EASTCO-PR             2               76
WATSON                     11/30/98         NY                EASTCO-PR             1               76
DIAMOND, JOH               12/7/98          NY                EASTCO-PR             1               78
DIAMOND, VIC               12/7/98          NY                EASTCO-PR             2               78
DIANA                      12/7/98          NY                EASTCO-PR             2               78
DICATALDO                  12/7/98          NY                EASTCO-PR             1               78
DICIOCCIO, CES             12/7/98          NY                EASTCO-PR             2               78
DICIOCCIO, LU              12/7/98          NY                EASTCO-PR             2               78
DIMAGGIO                   12/7/98          NY                EASTCO-PR             2               78
DIMLER                     12/7/98          NY                EASTCO-PR             2               78
DIMONTE                    12/7/98          NY                EASTCO-PR             2               78
DISAPIO                    12/7/98          NY                EASTCO-PR             2               78
DISERIO                    12/7/98          NY                EASTCO-PR             2               78
DOCKERY                    12/7/98          NY                EASTCO-PR             1               78
DOHERTY                    12/7/98          NY                EASTCO-PR             2               78
DOHRING                    12/7/98          NY                EASTCO-PR             1               78
DONNELLY                   12/7/98          NY                EASTCO-PR             1               78
DONOVAN                    12/7/98          NY                EASTCO-PR             2               78
DOODY                      12/7/98          NY                EASTCO-PR             2               78
DOTUR                      12/7/98          NY                EASTCO-PR             2               78
DOUGHERTY                  12/7/98          NY                EASTCO-PR             2               78
DOUGLAS                    12/7/98          NY                EASTCO-PR             2               78
DOWNER                     12/7/98          NY                EASTCO-PR             2               78
DOWNIE                     12/7/98          NY                EASTCO-PR             2               78
DOWNING                    12/7/98          NY                EASTCO-PR             1               78
DRAKE                      12/7/98          NY                EASTCO-PR             2               78
DROSAKIS                   12/7/98          NY                EASTCO-PR             1               78
DUGGAN                     12/7/98          NY                EASTCO-PR             2               78
</TABLE>



<PAGE>


<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
DUMAN                      12/7/98          NY                EASTCO-PR             2               78
DWYER                      12/7/98          NY                EASTCO-PR             2               78
EATS                       12/7/98          NY                EASTCO-PR             2               78
EBINGER                    12/7/98          NY                EASTCO-PR             2               78
EDWARDS, DON               12/7/98          NY                EASTCO-PR             1               78
EDWARDS, STAN              12/7/98          NY                EASTCO-PR             2               78
EGGERS                     12/7/98          NY                EASTCO-PR             2               78
EGLOFF                     12/7/98          NY                EASTCO-PR             2               78
EISKANT                    12/7/98          NY                EASTCO-PR             1               78
ELDER                      12/7/98          NY                EASTCO-PR             2               78
ELIASON                    12/7/98          NY                EASTCO-PR             2               78
ELLIS                      12/7/98          NY                EASTCO-PR             2               78
ELROSE                     12/7/98          NY                EASTCO-PR             1               78
EMANUELLI                  12/7/98          NY                EASTCO-PR             2               78
EMER, RAY                  12/7/98          NY                EASTCO-PR             2               78
EMER, ROB                  12/7/98          NY                EASTCO-PR             2               78
EMERSON                    12/7/98          NY                EASTCO-PR             2               78
END                        12/7/98          NY                EASTCO-PR             2               78
ENGELAGE                   12/7/98          NY                EASTCO-PR             1               78
ERBE                       12/7/98          NY                EASTCO-PR             2               78
EVERETT                    12/7/98          NY                EASTCO-PR             2               78
EWERT                      12/7/98          NY                EASTCO-PR             2               78
FAGAN                      12/7/98          NY                EASTCO-PR             2               78
FAITH                      12/7/98          NY                EASTCO-PR             2               78
FALCONE                    12/7/98          NY                EASTCO-PR             1               78
FALERNI                    12/7/98          NY                EASTCO-PR             1               78
FAMILIO                    12/7/98          NY                EASTCO-PR             2               78
FANCHER                    12/7/98          NY                EASTCO-PR             2               78
FANTASKE                   12/7/98          NY                EASTCO-PR             2               78
FAREA                      12/7/98          NY                EASTCO-PR             2               78
FARMARCO                   12/7/98          NY                EASTCO-PR             2               78
FARRELL, EDW               12/7/98          NY                EASTCO-PR             2               78
FARRELL, PAT               12/7/98          NY                EASTCO-PR             2               78
FARRELL, ROB               12/7/98          NY                EASTCO-PR             2               78
FARRER                     12/7/98          NY                EASTCO-PR             2               78
FAUSTO                     12/7/98          NY                EASTCO-PR             2               78
FEDORYK                    12/7/98          NY                EASTCO-PR             2               78
FEFERMAN                   12/7/98          NY                EASTCO-PR             2               78
FELICE                     12/7/98          NY                EASTCO-PR             1               78
MEHALL                     9/15/98          NY                EASTCO-PR             1               76
FEOLA                      12/7/98          NY                EASTCO-PR             2               78
FERNANDEZ                  12/7/98          NY                EASTCO-PR             2               78
FERRARA, DOM               12/7/98          NY                EASTCO-PR             2               78
FERRARA, LOU               12/7/98          NY                EASTCO-PR             2               78
FERRARA, PHI               12/7/98          NY                EASTCO-PR             2               78
FERRAVANTI                 12/7/98          NY                EASTCO-PR             1               78
FERRENTINO                 12/7/98          NY                EASTCO-PR             2               78
FERY                       12/7/98          NY                EASTCO-PR             2               78
FICKEL                     12/7/98          NY                EASTCO-PR             1               78
FIGURA                     12/7/98          NY                EASTCO-PR             1               78
FIGEL                      12/7/98          NY                EASTCO-PR             2               78
</TABLE>




<PAGE>

<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
FILIPPELLI                 12/7/98          NY                EASTCO-PR             2               78
FILIPPI                    12/7/98          NY                EASTCO-PR             2               78
FINING                     12/7/98          NY                EASTCO-PR             2               78
FINLEY                     12/7/98          NY                EASTCO-PR             1               78
FIORE                      12/7/98          NY                EASTCO-PR             2               78
FIORETTI                   12/7/98          NY                EASTCO-PR             2               78
FISCH                      12/7/98          NY                EASTCO-PR             2               78
FITZPATRICK, D             12/7/98          NY                EASTCO-PR             2               78
FITZPATRICK, F             12/7/98          NY                EASTCO-PR             2               78
FLANAGAN                   12/7/98          NY                EASTCO-PR             2               78
FLINT                      12/7/98          NY                EASTCO-PR             2               78
FLOREA                     12/7/98          NY                EASTCO-PR             2               78
FOLEY, M                   12/7/98          NY                EASTCO-PR             2               78
FOLEY, T                   12/7/98          NY                EASTCO-PR             1               78
FOLLIS                     12/7/98          NY                EASTCO-PR             2               78
FONDA                      12/7/98          NY                EASTCO-PR             2               78
FORBACH                    12/7/98          NY                EASTCO-PR             2               78
FORCUCCI, R                12/7/98          NY                EASTCO-PR             2               78
FORCUCCI, W                12/7/98          NY                EASTCO-PR             1               78
FORNI                      12/7/98          NY                EASTCO-PR             2               78
FORTI                      12/7/98          NY                EASTCO-PR             1               78
FRANCZYK                   12/7/98          NY                EASTCO-PR             2               78
FRANKEL                    12/7/98          NY                EASTCO-PR             1               78
FRASIER                    12/7/98          NY                EASTCO-PR             2               78
FRAWLEY                    12/18/98         NY                EASTCO-PR             1               78
FREER                      12/18/98         NY                EASTCO-PR             1               78
FREVELE                    12/18/98         NY                EASTCO-PR             2               78
FREY                       12/18/98         NY                EASTCO-PR             2               78
FREYTAG                    12/18/98         NY                EASTCO-PR             2               78
FRYE                       12/18/98         NY                EASTCO-PR             2               78
FUHRMAN                    12/18/98         NY                EASTCO-PR             1               78
FUINA                      12/18/98         NY                EASTCO-PR             1               78
FURMAN                     12/18/98         NY                EASTCO-PR             2               78
GACEK                      12/18/98         NY                EASTCO-PR             1               78
GACH                       12/18/98         NY                EASTCO-PR             2               78
GAGNON                     12/18/98         NY                EASTCO-PR             1               78
GALLAGHER, J               12/18/98         NY                EASTCO-PR             2               78
GALLAGHER, PA              12/18/98         NY                EASTCO-PR             2               78
GALLAGHER, PE              12/18/98         NY                EASTCO-PR             1               78
GALTON                     12/18/98         NY                EASTCO-PR             2               78
GANNON                     12/18/98         NY                EASTCO-PR             2               78
GARDNER, A                 12/18/98         NY                EASTCO-PR             2               78
GARDNER, E                 12/18/98         NY                EASTCO-PR             2               78
GARDO                      12/18/98         NY                EASTCO-PR             1               78
GARGAN                     12/18/98         NY                EASTCO-PR             2               78
GARGANO                    12/18/98         NY                EASTCO-PR             2               78
GAUDIO                     12/18/98         NY                EASTCO-PR             1               78
GEHRING                    12/18/98         NY                EASTCO-PR             2               78
GENTILE, JOH               12/18/98         NY                EASTCO-PR             2               78
GENTILE, JOS               12/18/98         NY                EASTCO-PR             2               78
GEPPERT                    12/18/98         NY                EASTCO-PR             2               78
</TABLE>




<PAGE>

<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
GERETY                     12/18/98         NY                EASTCO-PR             1               78
GERHARDT                   12/18/98         NY                EASTCO-PR             2               78
GETTER                     12/18/98         NY                EASTCO-PR             2               78
GIACOPINO                  12/18/98         NY                EASTCO-PR             2               78
GIBIINO                    12/18/98         NY                EASTCO-PR             2               78
GIBSON                     12/18/98         NY                EASTCO-PR             2               78
GIESECKE                   12/18/98         NY                EASTCO-PR             2               78
GINTER                     12/18/98         NY                EASTCO-PR             2               78
GIORDANELLA                12/18/98         NY                EASTCO-PR             2               78
GIURICEO                   12/18/98         NY                EASTCO-PR             2               78
GLEASON                    12/18/98         NY                EASTCO-PR             2               78
GLENN                      12/18/98         NY                EASTCO-PR             2               78
GLICK                      12/18/98         NY                EASTCO-PR             2               78
GLOSSER                    12/18/98         NY                EASTCO-PR             2               78
GOFF                       12/18/98         NY                EASTCO-PR             2               78
GOLDSTEIN                  12/18/98         NY                EASTCO-PR             2               78
GOLUB                      12/18/98         NY                EASTCO-PR             2               78
GOODMAN                    12/18/98         NY                EASTCO-PR             2               78
GORRASI                    12/18/98         NY                EASTCO-PR             2               78
GRACESQUI                  12/18/98         NY                EASTCO-PR             2               78
GRANELLI                   12/18/98         NY                EASTCO-PR             2               78
GRANO                      12/18/98         NY                EASTCO-PR             2               78
GRANT, O                   12/18/98         NY                EASTCO-PR             2               78
GRANT, R                   12/18/98         NY                EASTCO-PR             2               78
GRAUER                     12/18/98         NY                EASTCO-PR             1               78
GRECO                      12/18/98         NY                EASTCO-PR             2               78
GREEN, R                   12/18/98         NY                EASTCO-PR             2               78
GREENE, F                  12/18/98         NY                EASTCO-PR             2               78
GREENWOOD, K               12/18/98         NY                EASTCO-PR             2               78
GREENWOOD, R               12/18/98         NY                EASTCO-PR             2               78
GRIFFIN                    12/18/98         NY                EASTCO-PR             2               78
GRINDSTAFF                 12/18/98         NY                EASTCO-PR             2               78
GROPPER                    12/18/98         NY                EASTCO-PR             1               78
GROSS                      12/18/98         NY                EASTCO-PR             1               78
GRUPKA                     12/18/98         NY                EASTCO-PR             2               78
GUND                       12/18/98         NY                EASTCO-PR             2               78
GUNDLACH                   12/18/98         NY                EASTCO-PR             2               78
GURNICK                    12/18/98         NY                EASTCO-PR             1               78
GUTOWSKI                   12/18/98         NY                EASTCO-PR             2               78
GUZIKOWSKI                 12/18/98         NY                EASTCO-PR             2               78
GZYL                       12/18/98         NY                EASTCO-PR             2               78
HABERMANN                  12/18/98         NY                EASTCO-PR             1               78
HAGEMAN                    12/18/98         NY                EASTCO-PR             2               78
HAGGART                    12/18/98         NY                EASTCO-PR             2               78
HAIGHT                     12/18/98         NY                EASTCO-PR             1               78
HALL, C                    12/18/98         NY                EASTCO-PR             2               78
HALL, J                    12/18/98         NY                EASTCO-PR             2               78
HALL-PETERSE               12/18/98         NY                EASTCO-PR             2               78
HAMILTON                   12/18/98         NY                EASTCO-PR             2               78
HAMMOND                    12/18/98         NY                EASTCO-PR             1               78
HANITZ                     12/18/98         NY                EASTCO-PR             2               78
</TABLE>




<PAGE>


<TABLE>
<CAPTION>
                                                                                #PLAIN-          #DEFEND-
CASE                       DATE             STATE             COMPANY            TIFFS             ANTS
- ----                       ----             -----             -------           -------          --------
<S>                        <C>              <C>               <C>                   <C>             <C>
HANSEN                     12/18/98         NY                EASTCO-PR             2               78
HANSLICK                   12/18/98         NY                EASTCO-PR             2               78
HANSON                     12/18/98         NY                EASTCO-PR             2               78
HANULAK                    12/18/98         NY                EASTCO-PR             2               78
HARB                       12/18/98         NY                EASTCO-PR             2               78
HARDAWAY                   12/18/98         NY                EASTCO-PR             2               78
HARENZA                    12/18/98         NY                EASTCO-PR             2               78
HARLING                    12/18/98         NY                EASTCO-PR             1               78
HARNISCH                   12/18/98         NY                EASTCO-PR             2               78
HARRIS, A                  12/18/98         NY                EASTCO-PR             2               78
HARRIS, E                  12/18/98         NY                EASTCO-PR             2               78
HARRIS, W                  12/18/98         NY                EASTCO-PR             2               78
HATT                       12/18/98         NY                EASTCO-PR             2               78
HAUPTMAN                   12/18/98         NY                EASTCO-PR             2               78
HAUSER                     12/18/98         NY                EASTCO-PR             1               78
HAYES, JA                  12/18/98         NY                EASTCO-PR             2               78
HAYES, JO                  12/18/98         NY                EASTCO-PR             2               78
HEBELER                    12/18/98         NY                EASTCO-PR             1               78
HEIMAN                     12/18/98         NY                EASTCO-PR             2               78
HEINSCH                    12/18/98         NY                EASTCO-PR             2               78
HELMER                     12/18/98         NY                EASTCO-PR             2               78
HERBERT                    12/18/98         NY                EASTCO-PR             2               78
</TABLE>



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