<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
-------------------------------------
FORM 11-K
ANNUAL REPORT
Commission File No. 0-9899
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the Plan's fiscal year ended DECEMBER 31, 1998
--------------------------------------
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
Medical Graphics Corporation
350 Oak Grove Parkway
Saint Paul, Minnesota 55127
This Form 11-K consists of 16 pages (including exhibits). The index to exhibits
is set forth on page 3.
1
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Trustees of the Medical Graphics Corporation 401(k) Savings Plan have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: August 12, 1999 MEDICAL GRAPHICS CORPORATION 401(k)
SAVINGS PLAN
By /s/ DALE H. JOHNSON
--------------------------------
Dale H. Johnson
Trustee
2
<PAGE>
<TABLE>
<CAPTION>
INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION PAGE
<S> <C> <C>
23.1 Consent of Independent Auditors - Deloitte & Touche 4
LLP
99 Financial Statements 5
Independent Auditors' Report of Deloitte & Touche 6
LLP
Medical Graphics 401(k) Savings Plan Financial 7
Statements for the Years Ended December 31, 1998
and 1997
Supplemental Schedules for the Year Ended 14
December 31, 1998
</TABLE>
3
<PAGE>
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement
No. 33-64430 of Medical Graphics Corporation on Form S-8 of our report dated
August 10, 1999 appearing in this annual report on Form 11-K of the Medical
Graphics Corporation 401(k) Savings Plan for the year ended December 31, 1998.
/s/ DELOITTE & TOUCHE LLP
- -------------------------
Minneapolis, Minnesota
August 10, 1999
<PAGE>
MEDICAL GRAPHICS CORPORATION 401(K) SAVINGS PLAN
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997:
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4
SUPPLEMENTAL SCHEDULES FURNISHED PURSUANT TO THE
REQUIREMENTS OF FORM 5500 AS OF AND FOR THE YEAR
ENDED DECEMBER 31, 1998:
Item 27a - Schedule of Assets Held for Investment Purposes 10
Item 27d - Schedule of Reportable Transactions 11
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
Board of Directors
Medical Graphics Corporation
Saint Paul, Minnesota
We have audited the accompanying statements of net assets available for plan
benefits of Medical Graphics Corporation 401(k) Savings Plan (the Plan) as of
December 31, 1998 and 1997 and the related statements of changes in net
assets available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance concerning whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for plan benefits as of December 31, 1998
and 1997, and the changes in net assets available for plan benefits for the
years then ended, in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in
the table of contents are presented for the purpose of additional analysis
and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules are the responsibility of
the Plan's management. Such supplemental schedules have been subjected to the
auditing procedures applied in our audit of the basic financial statements
and, in our opinion, are fairly stated in all material respects when
considered in relation to the basic financial statements taken as a whole.
Minneapolis, Minnesota
August 10, 1999
<PAGE>
MEDICAL GRAPHICS CORPORATION 401(k) SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1998 AND 1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1997
ASSETS:
Investments (Note 3):
<S> <C> <C>
Guaranteed Interest Account $ 373,780
Medical Graphics Corporation Common Stock Fund $ 3,084 7,844
Stable Return Fund 761,302 504,137
Strategic Income Fund 157,462 108,599
Growth Balanced Fund 383,243 298,886
Diversified Equity Fund 550,860 662,462
Growth Equity Fund 509,688 407,435
Janus Worldwide Fund 924,405 682,135
Small Cap Opportunities Fund 267,967 535,459
Putnam OTC Emerging Growth Fund 131,369 59,956
Participant loans 84,262 87,861
------------- --------------
NET ASSETS AVAILABLE FOR BENEFITS $ 3,773,642 $ 3,728,554
============= ==============
</TABLE>
See notes to financial statements.
2
<PAGE>
MEDICAL GRAPHICS CORPORATION 401(k) SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEARS ENDED DECEMBER 31, 1998 AND 1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
NET ASSETS AVAILABLE FOR PLAN BENEFITS AT
BEGINNING OF YEAR $ 3,728,554 $ 3,756,216
ADDITIONS:
Net investment income (Note 4) 528,974 468,402
Contributions:
Employer 12,002
Participant 423,664 369,910
Rollovers 22,724 120,691
------------- --------------
Total additions 975,362 971,005
DEDUCTIONS:
Distributions to participants 930,274 997,715
Administrative and loan expenses 952
------------- --------------
Total deductions 930,274 998,667
------------- --------------
NET ADDITIONS (DEDUCTIONS) 45,088 (27,662)
------------- --------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS
AT END OF YEAR $ 3,773,642 $ 3,728,554
============= ==============
</TABLE>
See notes to financial statements.
3
<PAGE>
MEDICAL GRAPHICS CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
- -------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN
The following description of the Medical Graphics Corporation 401(k)
Savings Plan (the Plan) provides only general information. Participants
should refer to the plan document for a more complete description of the
Plan's provisions.
GENERAL - The Plan is a defined contribution plan covering substantially
all employees of Medical Graphics Corporation (the Company) who have at
least six months of service and are age 21 or older. Medical Graphics
Corporation, as the plan administrator, controls and manages the
operation and administration of the Plan. Certain members of the
Company's management served as the trustees of the Plan through August
1997. As of September 1997, Norwest Bank Minnesota, N.A. was appointed
the trustee of the Plan. Benefits were funded through a qualified trust
and a group annuity contract with Principal Mutual Life Insurance
Company through August 1997. As of September 1997, benefits are funded
through Norwest Bank Minnesota, N.A. During September 1997, all
investments, except the Guaranteed Interest Account, were transferred
from Principal Mutual Life Insurance to Norwest Bank Minnesota, N.A. The
Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA).
CONTRIBUTIONS - Under the provisions of the Plan, a participant may
contribute up to 17% of pretax annual compensation to his/her
participant account up to the maximum amount determined by the Internal
Revenue Service. There is a provision in the Plan for matching and
nonelective employer discretionary contributions. The Company
contributed 25% of the first 6% of base compensation that a participant
contributed to the Plan, through February 9, 1997, at which time the
Company discontinued the matching contributions.
VESTING - Participants are immediately vested in their salary reduction
contributions plus earnings thereon. Vesting in the matching and
nonelective discretionary contribution portion of their accounts plus
actual earnings thereon is based on years of credited service. A
participant is 100% vested after three years of credited service, with
staggered vesting percentages prior to that time.
PARTICIPANT ACCOUNTS - Each participant's account is credited with the
participant's contributions and withdrawals, as applicable, and
allocations of (a) the Company's contributions and (b) plan earnings,
and debited with an allocation of administrative expenses. Allocations
are based on participant earnings, as defined. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account.
INVESTMENT OPTIONS - Through August 30, 1997, a participant was allowed
to direct employee and employer contributions to investment options as
follows:
KOPP INVESTMENT PORTFOLIO - Funds are invested primarily in the
common stocks of emerging growth and large corporations.
GUARANTEED INTEREST ACCOUNT - A guaranteed investment which invests
mostly in private placement bonds, commercial mortgages, and
residential mortgages.
4
<PAGE>
U.S. STOCK ACCOUNT - A pooled investment account invested primarily
in common stocks of U.S. companies.
INTERNATIONAL STOCK ACCOUNT - A pooled investment account invested
primarily in common stocks of corporations located outside the
United States.
MONEY MARKET ACCOUNT - A pooled investment account which invests in
money market instruments.
BOND EMPHASIS BALANCED ACCOUNT - A pooled investment account
invested in other separate accounts of Principal Mutual Life
Insurance Company, weighted toward fixed income accounts.
STOCK INDEX ACCOUNT - A pooled investment account invested primarily
in common stocks of those firms included in the Standard & Poor's
500 Stock Index.
MEDIUM COMPANY BLEND ACCOUNT - A pooled investment account invested
in common stocks of medium-sized companies that generate long-term
capital growth.
BOND AND MORTGAGE ACCOUNT - A pooled investment account invested in
intermediate-term fixed-income loans.
MEDICAL GRAPHICS CORPORATION COMMON STOCK FUND - Funds are invested
in the common stock of Medical Graphics Corporation. Effective
January 1, 1995, no new contributions could be made to this fund.
Effective September 1, 1997, a participant may direct employee and
employer contributions to investment options as follows:
STABLE RETURN FUND - A conservative fund option which invests in
high quality insurance contracts, bank investment contracts, and
money market instruments seeking to provide safety of principal and
adequate liquidity.
STRATEGIC INCOME FUND - Designated to provide consistent total
return with emphasis on principal protection and income, with a
small amount of equity exposure to enhance returns.
GROWTH BALANCED FUND - Designed to provide a combination of current
income and capital appreciation by diversifying investment of the
Fund's assets between stocks and intermediate maturity bonds. The
Fund holds more equity securities than the Strategic Income Fund.
DIVERSIFIED EQUITY FUND - Emphasizes long-term capital appreciation.
Annual return volatility is moderated through diversifying among
five complimentary equity styles.
GROWTH EQUITY FUND - Designed to reduce the volatility and risk of
investing in equity securities.
JANUS WORLDWIDE FUND - Seeks long-term capital growth by investing
primarily in stocks of foreign and U.S. companies.
SMALL CAP OPPORTUNITIES FUND - An aggressive fund that invests in
small growth companies.
5
<PAGE>
PUTNAM OTC EMERGING GROWTH FUND - Invests in mainly over the counter
stocks of small- to mid-size emerging growth companies.
Participants may change or transfer their investments options
at any time.
LOANS TO PARTICIPANTS - Participants may borrow from their fund accounts
a minimum of $1,000 with a maximum of 50% of their vested balance or
$50,000, whichever is less. Loan transactions are treated as a transfer
between the investment fund and the loan fund. Loan terms range from 1
to 5 years or up to 25 years for the purchase of a primary residence.
The loans are secured by the balance in the participant's account and
bear interest at a rate commensurate with local prevailing rates as
determined quarterly by the plan administrator. Principal and interest
is paid ratably through monthly payroll deductions.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF INVESTMENTS - The investments of the Plan are stated at
fair value based on closing sales prices reported on recognized
securities exchanges on the last business day of the year, or for listed
securities having no sales reported, upon the last reported bid prices
on that date. The mutual funds are valued at quoted market prices which
represent the net asset values of shares held by the Plan at year-end.
VALUATION OF LOANS TO PARTICIPANTS - The loans to participants are
valued at cost plus accrued interest which approximates fair value.
EXPENSES - The Plan's expenses are paid from the assets of the Plan and
are allocated to the participant's accounts.
3. INVESTMENTS
The Plan's investments are held in a trust. The Plan conducts
transactions with parties-in-interest which include the Company; Norwest
Bank Minnesota, N.A.; and the participants of the Plan. The following
assets represent individual investments greater than 5% of the Plan's
assets at December 31, 1998 and 1997:
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
Principal Mutual Life Insurance Co. -
Guaranteed Interest Account $ 373,780
Norwest Bank Minnesota, N.A.:
Stable Return Fund $ 761,302 504,137
Growth Balanced Fund 383,243 298,886
Diversified Equity Fund 550,860 662,462
Growth Equity Fund 509,688 407,435
Janus Worldwide Fund 924,405 682,135
Small Cap Opportunities Fund 267,967 535,459
</TABLE>
6
<PAGE>
4. NET INVESTMENT INCOME
A summary of the Plan's investment income for the years ended
December 31, 1998 and 1997 is as follows:
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
Net appreciation (including dividends) in fair value of investments $ 523,482 $ 419,691
Interest income, including interest on participant loans 5,492 48,711
----------- -----------
$ 528,974 $ 468,402
=========== ===========
</TABLE>
5. PLAN TERMINATION
Although it has not expressed any intention to do so, the Company has
the right under the Plan to terminate the Plan subject to the provisions
set forth in ERISA. In the event of any termination of the Plan, the
accounts of each affected participant shall become fully vested and
distributed to the respective participants.
6. INTERNAL REVENUE SERVICE STATUS
The Plan obtained its latest determination letter dated July 27, 1993,
in which the Internal Revenue Service stated that the Plan, as then
designed, was in compliance with the applicable requirements of the
Internal Revenue Code. The Plan has been amended since receiving this
determination letter. Effective September 1997, the Plan is covered
under the tax determination letter dated November 23, 1992, according to
the Plan's adoption of the standardized plan #06 with Norwest Bank
Minnesota, N.A. The Company believes that the Plan is currently designed
and being operated in compliance with the applicable requirements of the
Internal Revenue Code. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
7
<PAGE>
7. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY
TYPE OF FUND
<TABLE>
<CAPTION>
Medium Bond
KOPP U.S. International Company Emphasis Money Stock Bond and
Investment Stock Stock Blend Balanced Market Index Mortgage
Portfolio Account Account Account Account Account Account Account
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1996 $1,780,013 $ 900,546 $ 252,293 $ 4,765 $ 70,323 $ 72,924 $ 25,941 $ 449
ADDITIONS:
Net investment income 206,056 186,735 36,482 1,313 7,515 5,160 4,802 25
Contributions:
Employer 3,466 3,748 1,679 22 534 206 71
Participant 53,058 70,093 39,171 707 10,911 3,827 804 222
Rollovers
Principal loan payments 11,550 31,088 4,213 1,197 225
---------- --------- --------- --------- --------- --------- --------- ---------
Total additions 274,130 291,664 81,545 2,042 20,157 9,418 5,677 247
DEDUCTIONS:
Distribution to participants 140,336 485,649 30,313 5,733 1,024 20,462 76
Administrative and loan
expenses 457 126 1 40 24 2
New loans 42,091 5,950 3,950 950
---------- --------- --------- --------- --------- --------- --------- ---------
Total deductions 182,427 492,056 34,389 1 6,723 1,048 20,464 76
INTERFUND TRANSFERS (1,871,716) (700,154) (299,449) (6,806) (83,757) (81,294) (11,154) (620)
---------- --------- --------- --------- --------- --------- --------- ---------
NET (DEDUCTIONS) ADDITIONS (1,780,013) (900,546) (252,293) (4,765) (70,323) (72,924) (25,941) (449)
---------- --------- --------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1997 - - - - - - - -
ADDITIONS:
Net investment income
Contributions:
Employer
Participant
Rollovers
Principal loan payments
Total additions
DEDUCTIONS
Distribution to participants
INTERFUND TRANSFERS
NET (DEDUCTIONS) ADDITIONS
---------- --------- --------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1998 $ - $ - $ - $ - $ - $ - $ - $ -
========== ========= ========= ========= ========= ========= ========= =========
$ - $ 3,084 $ 84,262 $ 761,302 $ 157,462 $ 383,243 $ 550,860 $ 509,688
========== ========= ========= ========= ========= ========= ========= =========
$ 924,405 $ 267,967 $ 131,369 $3,773,642
========== ========= ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Medical
Graphics
Guaranteed Corporation Stable Strategic Growth Diversified
Interest Common Participant Return Income Balanced Equity
Account Stock Fund Loans Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1996 $ 554,308 $ 10,730 $ 83,924
ADDITIONS:
Net investment income 29,631 (2,049) $ 13,895 $ 3,905 $ 9,456 $ 17,087
Contributions:
Employer 2,276
Participant 34,078 12,442 8,007 15,651 28,499
Rollovers 6,312 6,233 79 15,599
Principal loan payments 1,703 (57,992) 346 348 362 4,096
---------- ---------- ---------- -------- ---------- --------- ---------
Total additions 67,688 (2,049) (57,992) 32,995 18,493 25,548 65,281
DEDUCTIONS:
Distribution to participants 76,382 828 3,012 232,690
Administrative and loan
expenses 302
New loans 12,000 (64,941)
---------- ---------- ---------- --------
Total deductions 88,684 828 (61,929) 232,690
INTERFUND TRANSFERS (159,532) (9) 703,832 90,106 273,338 597,181
---------- ---------- ---------- -------- ---------- --------- ---------
NET (DEDUCTIONS) ADDITIONS (180,528) (2,886) 3,937 504,137 108,599 298,886 662,462
---------- ---------- ---------- -------- ---------- --------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1997 373,780 7,844 87,861 504,137 108,599 298,886 662,462
ADDITIONS:
Net investment income 9,244 (4,715) 39,766 15,922 71,218 117,187
Contributions:
Employer
Participant 38,286 20,404 39,558 79,243
Rollovers 2,762
Principal loan payments (15,283) 1,376 1,045 862 2,844
---------- ---------- ---------- -------- ---------- --------- ---------
Total additions 9,244 (4,715) (15,283) 79,428 37,371 111,638 202,036
DEDUCTIONS -
Distribution to participants (6,504) (45) (34,465) (125,468) (13,438) (26,606) (316,977)
INTERFUND TRANSFERS (376,520) 46,149 303,205 24,930 (675) 3,339
---------- ---------- ---------- -------- ---------- --------- ---------
NET (DEDUCTIONS) ADDITIONS (373,780) (4,760) (3,599) 257,165 48,863 84,357 (111,602)
---------- ---------- ---------- -------- ---------- --------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1998 $ - $ 3,084 $ 84,262 $761,302 $ 157,462 $ 383,243 $ 550,860
========== ========== ========== ======== ========== ========= =========
<CAPTION>
Putnam
Small OTC
Growth Janus Cap Emerging
Equity Worldwide Opportunities Growth
Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1996 $3,756,216
ADDITIONS:
Net investment income $ (693) $ (46,183) $ (3,661) $ (1,074) 468,402
Contributions:
Employer 12,002
Participant 27,061 35,583 23,820 5,976 369,910
Rollovers 6,153 43,157 43,158 120,691
Principal loan payments 1,216 917 564 167
--------- --------- --------- --------- ----------
Total additions 33,737 33,474 63,881 5,069 971,005
DEDUCTIONS:
Distribution to participants 905 305 997,715
Administrative and loan
expenses 952
New loans
--------- --------- ----------
Total deductions 905 305 998,667
INTERFUND TRANSFERS 374,603 648,661 471,578 55,192
--------- --------- --------- --------- ----------
NET (DEDUCTIONS) ADDITIONS 407,435 682,135 535,459 59,956 (27,662)
--------- --------- --------- --------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1997 407,435 682,135 535,459 59,956 3,728,554
ADDITIONS:
Net investment income 70,193 256,078 (61,165) 15,246 528,974
Contributions:
Employer
Participant 74,255 92,899 56,612 22,407 423,664
Rollovers 7,358 7,223 921 4,460 22,724
Principal loan payments 3,786 2,875 2,029 466
--------- --------- --------- --------- ----------
Total additions 155,592 359,075 (1,603) 42,579 975,362
DEDUCTIONS -
Distribution to participants (23,276) (197,308) (179,781) (6,406) (930,274)
INTERFUND TRANSFERS (30,063) 80,503 (86,108) 35,240
--------- --------- --------- --------- ----------
NET (DEDUCTIONS) ADDITIONS 102,253 242,270 (267,492) 71,413 45,088
--------- --------- --------- --------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1998 $ 509,688 $ 924,405 $ 267,967 $ 131,369 $3,773,642
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
</TABLE>
8
<PAGE>
SUPPLEMENTAL SCHEDULES FURNISHED PURSUANT TO THE
REQUIREMENTS OF FORM 5500
MEDICAL GRAPHICS CORPORATION 401(k) SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIR
ISSUER SHARES COST VALUE
INVESTMENTS:
<S> <C> <C> <C>
Norwest Bank Minnesota, N.A. (1):
Stable Return Fund 28,463 $ 718,097 $ 761,302
Strategic Income Fund 7,973 155,460 157,462
Growth Balanced Fund 12,843 346,591 383,243
Diversified Equity Fund 12,057 487,355 550,860
Growth Equity Fund 14,490 508,706 509,688
Janus Worldwide Fund 19,444 789,609 924,405
Small Cap Opportunities Fund 13,225 301,655 267,967
Putnam OTC Emerging Growth Fund 7,615 115,742 131,369
Medical Graphics Corporation Common Stock Fund (1) 2,596 10,920 3,084
------------- --------------
3,434,135 3,689,380
Participant loans (1) (2) 84,262 84,262
------------- --------------
$ 3,518,397 $ 3,773,642
============= ==============
</TABLE>
(1) Known to be a party-in-interest.
(2) Participant loans include interest rates from 8.00% to 9.25% with
maturities at various dates through April 2002.
9
<PAGE>
MEDICAL GRAPHICS CORPORATION 401(k) SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1998
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTY INVOLVED AND DESCRIPTION NUMBER OF UNITS/ PURCHASE SELLING
OF TRANSACTIONS TRANSACTIONS SHARES PRICE PRICE
<S> <C> <C> <C> <C>
Series of Transactions:
Stable Return Fund: (1)
Purchases 53 17,045 $ 439,349
Sales 22 8,675 224,692
Janus Worldwide Fund: (1)
Purchases 56 6,540 268,193
Sales 16 5,152 230,535
Small Cap Opportunities Fund: (1)
Purchases 49 3,116 67,349
Sales 14 13,816 272,741
Diversified Equity Fund: (1)
Purchases 53 3,231 136,375
Sales 18 8,449 350,784
</TABLE>
<TABLE>
<CAPTION>
CURRENT
VALUE OF
ASSETS ON NET
PARTY INVOLVED AND DESCRIPTION COST OF TRANSACTION GAIN
OF TRANSACTIONS SSETS DATE (LOSS)
<S> <C> <C> <C>
Series of Transactions:
Stable Return Fund: (1)
Purchases $ 439,349 $ 439,349
Sales 216,012 224,692 $ 8,680
Janus Worldwide Fund: (1)
Purchases 268,193 268,193
Sales 208,856 230,535 21,679
Small Cap Opportunities Fund: (1)
Purchases 67,349 67,349
Sales 318,647 272,741 (45,906)
Diversified Equity Fund: (1)
Purchases 136,375 136,375
Sales 339,057 350,784 11,727
</TABLE>
(1) Known to be a party-in-interest.
10
