GENESEE CORP
10-Q, 2000-03-10
MALT BEVERAGES
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<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML>
<head>
<TITLE>Genesee Corporation 3rd Quarter 10Q</TITLE>
</head>
<body link="#0000ff" vlink="#800080">
<p> > Index to Exhibits at page 22</p>

<p align="CENTER"> >SECURITIES AND EXCHANGE COMMISSION</p>

<p align="CENTER"> >WASHINGTON, D.C.</p>

<p align="CENTER"> ><b>FORM 10-Q</b></p>

<p align="JUSTIFY"> ></p>

<p> >[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934</p>

<p> >For the quarterly period ended <u>January 29,
2000</u></p>

<p> > OR</p>

<p> >[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES</p>

<p> > EXCHANGE ACT OF 1934</p>

<p> >For the transition period from to</p>

<p> > Commission File Number <u>0 - 1653</u></p>

<p> ><u> GENESEE CORPORATION</u></p>

<p> > (Exact name of registrant as specified in its
charter)</p>

<p> ><u> STATE OF NEW YORK</u> <u>16-0445920</u></p>

<p> > (State or other jurisdiction of (I.R.S. Employer</p>

<p> > incorporation or organization) Identification No.)</p>

<p> ><u> 445 St. Paul Street, Rochester, New York</u> <u>
14605</u></p>

<p> > (Address of principal executive offices) (Zip Code)</p>

<p> >Registrant’s telephone number, including area code
<u> (716) 546-1030</u></p>

<p align="JUSTIFY"> >Indicate by check mark whether the
Registrant (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 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<u> X</u> No</p>

<p> >As of the date of this report, the Registrant had the
following shares of common stock outstanding:</p>

<table cellspacing="0" border="0" cellpadding="7" width="421">
<tr>
<td width="59%" valign="TOP" height="19">
<p><u> ></u></p>

<p><u> >Class</u></p>
</td>
<td width="41%" valign="TOP" height="19">
<p> >Number of Shares<u> Outstanding</u></p>
</td>
</tr>

<tr>
<td width="59%" valign="TOP" height="37">
<p> >Class A Common Stock (voting), par value $.50 per
share</p>
</td>
<td width="41%" valign="TOP" height="37">
<p align="RIGHT"> ></p>

<p align="RIGHT"> >209,885</p>
</td>
</tr>

<tr>
<td width="59%" valign="TOP" height="41">
<p> >Class B Common Stock (non-voting), par value $.50 per
share</p>
</td>
<td width="41%" valign="TOP" height="41">
<p align="RIGHT"> >1,410,312</p>
</td>
</tr>
</TABLE>

<br>
<br>


<p> ></p>

<p> ></p>

<p> ></p>

<p> ></p>

<p> ></p>

<p> ></p>

<p> ></p>

<p> ></p>

<p> ></p>

<center>
<table border cellspacing="1" bordercolor="#000000" cellpadding=
"2" width="749">
<tr>
<td valign="TOP" colspan="16" height="13">
<p align="CENTER"> GENESEE
CORPORATION AND SUBSIDIARIES</p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="16" height="13">
<p align="CENTER"> CONSOLIDATED
BALANCE SHEETS </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="16" height="13">
<p align="CENTER"><b> January 29,
2000 and May 1, 1999 </b></p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="16%" valign="TOP" colspan="5" height="13">
<p align="RIGHT">
UNAUDITED </p>
</td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> AUDITED </p>
</td>
</tr>

<tr>
<td width="22%" valign="TOP" colspan="5" height="13">
<p><b><i> (Dollars in
Thousands) </i></b></p>
</td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="16%" valign="TOP" colspan="5" height="13">
<p align="RIGHT"><b><u> January 29,
2000 </u></b></p>
</td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"><b><u> May 1,
1999 </u></b></p>
</td>
</tr>

<tr>
<td width="11%" valign="TOP" colspan="3" height="13">
<p><b><u> ASSETS </u></b></p>
</td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" colspan="3" height="13">
<p> Current assets: </p>
</td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="34%" valign="TOP" colspan="5" height="13">
<p> Cash and cash
equivalents </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="9%" valign="TOP" height="13">
<p>  $ 5,850 </p>
</td>
<td width="7%" valign="TOP" colspan="3" height="13"></td>
<td width="14%" valign="TOP" colspan="2" height="13">
<p>  $ 5,836 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="47%" valign="TOP" colspan="6" height="13">
<p> Marketable securities available
for sale </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 7,834 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 7,964 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="61%" valign="TOP" colspan="7" height="13">
<p> Trade accounts receivable, less
allowance for doubtful receivables </p>
</td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="56%" valign="TOP" colspan="6" height="13">
<p> of $235 at January 29, 2000 and
$478 at May 1, 1999 </p>
</td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 4,077 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 10,222 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="61%" valign="TOP" colspan="7" height="13">
<p> Inventories, at lower of cost
(first-in, first-out) or market </p>
</td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 9,645 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 16,414 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="47%" valign="TOP" colspan="6" height="13">
<p> Deferred income tax assets,
current portion </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 0 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 397 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="20%" valign="TOP" colspan="4" height="13">
<p> Other current assets </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 230 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 751 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="30%" valign="TOP" colspan="4" height="13">
<p> Total current assets </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 27,636 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 41,584 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="37%" valign="TOP" colspan="6" height="13">
<p> Net property, plant and
equipment </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 12,197 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 37,040 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="66%" valign="TOP" colspan="9" height="13">
<p> Investment in and notes
receivable from unconsolidated real estate
partnerships </p>
</td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 5,252 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 5,343 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="49%" valign="TOP" colspan="7" height="13">
<p> Investments in direct financing
and leveraged leases </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 25,190 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 28,285 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="66%" valign="TOP" colspan="9" height="13">
<p> Goodwill and other intangibles
net of accumulated amortization of $2,766 at </p>
</td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="47%" valign="TOP" colspan="6" height="13">
<p> January 29, 2000 and $1,747 at
May 1, 1999 </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 27,071 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT">  28,280 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" colspan="3" height="13">
<p> Other assets </p>
</td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 2,898 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 3,421 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="37%" valign="TOP" colspan="6" height="13">
<p> Net assets held for disposal -
noncurrent </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 11,900 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 0 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" colspan="3" height="13">
<p> Total assets </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT">  $
112,144 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT">  $
143,953 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="53%" valign="TOP" colspan="8" height="13">
<p><b><u> LIABILITIES AND
SHAREHOLDERS' EQUITY </u></b></p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="19%" valign="TOP" colspan="4" height="13">
<p> Current liabilities: </p>
</td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="16%" valign="TOP" colspan="3" height="13">
<p> Line of credit </p>
</td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="2" height="13">
<p> $ 0 </p>
</td>
<td width="7%" valign="TOP" colspan="3" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p> $ 3,000 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="34%" valign="TOP" colspan="5" height="13">
<p> Notes payable, current
portion </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 82 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 82 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="20%" valign="TOP" colspan="4" height="13">
<p> Accounts payable </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 1,534 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 8,421 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="20%" valign="TOP" colspan="4" height="13">
<p> Income taxes payable </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 0 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 1,215 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="34%" valign="TOP" colspan="5" height="13">
<p> Federal and state beer taxes
payable </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 0 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 1,354 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="20%" valign="TOP" colspan="4" height="13">
<p> Accrued compensation </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 390 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 3,505 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="47%" valign="TOP" colspan="6" height="13">
<p> Accrued postretirement benefits,
current portion </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 0 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 731 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="34%" valign="TOP" colspan="5" height="13">
<p> Accrued expenses and
other </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 1,337 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 5,374 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="47%" valign="TOP" colspan="6" height="13">
<p> Deferred income tax liabilities,
current portion </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 1,051 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 0 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="47%" valign="TOP" colspan="6" height="13">
<p> Net liabilities held for
disposal - current </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 1,854 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 0 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="30%" valign="TOP" colspan="4" height="13">
<p> Total current
liabilities </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 6,248 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 23,682 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="37%" valign="TOP" colspan="6" height="13">
<p> Notes payable, noncurrent
portion </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 6,265 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 4,679 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="49%" valign="TOP" colspan="7" height="13">
<p> Deferred income tax liabilities,
noncurrent portion </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 10,090 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 8,251 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="49%" valign="TOP" colspan="7" height="13">
<p> Accrued postretirement benefits,
noncurrent portion </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 0 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 15,332 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" colspan="3" height="13">
<p> Other liabilities </p>
</td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 471 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 493 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" colspan="3" height="13">
<p> Total liabilities </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 23,074 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 52,437 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="49%" valign="TOP" colspan="7" height="13">
<p> Minority interests in
consolidated subsidiaries </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 2,588 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 2,479 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="40"></td>
<td width="19%" valign="TOP" colspan="4" height="40">
<p> Shareholders' equity: </p>
</td>
<td width="4%" valign="TOP" height="40"></td>
<td width="15%" valign="TOP" height="40"></td>
<td width="12%" valign="TOP" height="40"></td>
<td width="14%" valign="TOP" height="40"></td>
<td width="3%" valign="TOP" height="40"></td>
<td width="10%" valign="TOP" colspan="3" height="40"></td>
<td width="7%" valign="TOP" colspan="2" height="40"></td>
<td width="14%" valign="TOP" height="40"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="20%" valign="TOP" colspan="4" height="13">
<p> Class A common stock </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 105 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 105 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="20%" valign="TOP" colspan="4" height="13">
<p> Class B common stock </p>
</td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 753 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 753 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="34%" valign="TOP" colspan="5" height="13">
<p> Additional paid-in
capital </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 5,847 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 5,856 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="16%" valign="TOP" colspan="3" height="13">
<p> Retained earnings </p>
</td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 83,347 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 85,692 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="47%" valign="TOP" colspan="6" height="13">
<p> Accumulated other comprehensive
(loss)/income </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> (169) </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 77 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="34%" valign="TOP" colspan="5" height="13">
<p> Less: Class B treasury stock, at
cost </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> (3,401) </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> (3,446) </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="30%" valign="TOP" colspan="4" height="13">
<p>  Total shareholders'
equity </p>
</td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p align="RIGHT"> 86,482 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p align="RIGHT"> 89,037 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="42%" valign="TOP" colspan="5" height="13">
<p> Total liabilities and
shareholders' equity </p>
</td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13">
<p> $ 112,144 </p>
</td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13">
<p> $ 143,953 </p>
</td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="5%" valign="TOP" height="13"></td>
<td width="8%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="4%" valign="TOP" height="13"></td>
<td width="15%" valign="TOP" height="13"></td>
<td width="12%" valign="TOP" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>

<tr>
<td width="4%" valign="TOP" height="13"></td>
<td width="3%" valign="TOP" height="13"></td>
<td width="61%" valign="TOP" colspan="7" height="13">
<p> See accompanying notes to
consolidated financial statements. </p>
</td>
<td width="3%" valign="TOP" height="13"></td>
<td width="10%" valign="TOP" colspan="3" height="13"></td>
<td width="7%" valign="TOP" colspan="2" height="13"></td>
<td width="14%" valign="TOP" height="13"></td>
</tr>
</TABLE>
</center>

<br>
<br>


<p> ></p>

<center>
<table border cellspacing="1" cellpadding="2" width="743">
<tr>
<td valign="TOP" colspan="4" height="14">
<p align="CENTER"> GENESEE
CORPORATION AND CONSOLIDATED SUBSIDIARIES </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="4" height="14">
<p align="CENTER"> CONSOLIDATED
STATEMENTS </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="4" height="14">
<p align="CENTER"> OF EARNINGS AND
COMPREHENSIVE INCOME </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="4" height="14">
<p align="CENTER"> Thirteen Weeks
Ended January 29, 2000 and January 30, 1999 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> (Dollars in
Thousands, </p>
</td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Except Per Share
Data) </p>
</td>
<td width="10%" valign="TOP" height="14"></td>
<td width="17%" valign="TOP" colspan="2" height="14">
<p> UNAUDITED </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"><b><u>
2000 </u></b></p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"><b><u>
1999 </u></b></p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"><b><u> As
Restated </u></b></p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Revenues </p>
</td>
<td width="10%" valign="TOP" height="14">
<p> $ 11,927 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p> $ 11,972 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Cost of goods sold </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 9,223 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 8,627 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Gross profit </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 2,704 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 3,345 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Selling, general and
administrative expenses </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 1,685 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 2,029 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Operating income </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 1,019 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 1,316 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Investment income </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 245 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 250 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Other income </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 461 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 3,533 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Interest expense </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> (146) </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> (235) </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Interest of minority partners
in earnings of </p>
</td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Subsidiaries </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> (231) </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> (216) </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Earnings from continuing
operations before income taxes </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 1,348 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 4,648 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Income tax expense </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 620 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 1,958 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Earnings from continuing
operations </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 728 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 2,690 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Discontinued
operations: </p>
</td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Loss from operations of the
discontinued brewing segment </p>
</td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  (less applicable income tax
benefit of $ 363 and $ 799, respectively) </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> (426) </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> (939) </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Net earnings </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> 302 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> 1,751 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Other comprehensive income, net
of income taxes: </p>
</td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Unrealized holding losses
arising during the period </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT"> (85) </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT"> (20) </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p>  Comprehensive income </p>
</td>
<td width="10%" valign="TOP" height="14">
<p> $ 217 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p> $ 1,731 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Basic and diluted earnings per
share from continuing operations </p>
</td>
<td width="10%" valign="TOP" height="14">
<p> $ 0.45 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p> $ 1.66 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Basic and diluted loss per share
from discontinued operations </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT">  (0.26) </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT">  (0.58) </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14">
<p> $ 0.19 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p> $ 1.08 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Weighted average common shares
outstanding </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT">
1,620,197 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT">
1,618,909 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> Weighted average and common
equivalent shares </p>
</td>
<td width="10%" valign="TOP" height="14">
<p align="RIGHT">
1,620,483 </p>
</td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14">
<p align="RIGHT">
1,618,909 </p>
</td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14"></td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>

<tr>
<td width="73%" valign="TOP" height="14">
<p> See accompanying notes to
consolidated financial statements. </p>
</td>
<td width="10%" valign="TOP" height="14"></td>
<td width="4%" valign="TOP" height="14"></td>
<td width="12%" valign="TOP" height="14"></td>
</tr>
</TABLE>
</center>

<br>
<br>


<p> ></p>

<center>
<table border cellspacing="1" cellpadding="2" width="709">
<tr>
<td valign="TOP" colspan="4" height="12">
<p align="CENTER"> GENESEE
CORPORATION AND CONSOLIDATED SUBSIDIARIES </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="4" height="12">
<p align="CENTER"> CONSOLIDATED
STATEMENTS </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="4" height="12">
<p align="CENTER"> OF EARNINGS AND
COMPREHENSIVE INCOME </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="4" height="12">
<p align="CENTER"> Thirty Nine Weeks
Ended January 29, 2000 and January 30, 1999 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> (Dollars in
Thousands, </p>
</td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Except Per Share
Data) </p>
</td>
<td width="12%" valign="TOP" height="12"></td>
<td width="20%" valign="TOP" colspan="2" height="12">
<p> UNAUDITED </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"><b><u>
2000 </u></b></p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"><b><u>
1999 </u></b></p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p><b><u> As
Restated </u></b></p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Revenues </p>
</td>
<td width="12%" valign="TOP" height="12">
<p> $ 35,539 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p> $ 33,127 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Cost of goods sold </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 28,464 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 24,318 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Gross profit </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 7,075 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 8,809 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Selling, general and
administrative expenses </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 5,091 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 5,502 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Operating income </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 1,984 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 3,307 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Investment income </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 680 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 1,659 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Other income </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 718 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 3,615 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Interest expense </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> (438) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> (395) </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Interest of minority partners
in earnings of </p>
</td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  subsidiaries </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> (821) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> (710) </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Earnings from continuing
operations before income taxes </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 2,123 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 7,476 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Income tax expense </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 977 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 3,287 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Earnings from continuing
operations </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> 1,146 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 4,189 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Discontinued
operations: </p>
</td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Loss from operations of the
discontinued brewing segment </p>
</td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> (less applicable income tax
benefit of $ 1,525 and $ 1,612, respectively) </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> (1,790) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> (1,892) </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Net (loss)/earnings </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> (644) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> 2,297 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Other comprehensive income, net
of income taxes: </p>
</td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Unrealized holding losses
arising during the period </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT"> (246) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT"> (508) </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p>  Comprehensive
(loss)/income </p>
</td>
<td width="12%" valign="TOP" height="12">
<p> $ (890) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p> $ 1,789 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Basic and diluted earnings per
share from continuing operations </p>
</td>
<td width="12%" valign="TOP" height="12">
<p> $ 0.71 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p> $ 2.59 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Basic and diluted loss per share
from discontinued operations </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT">  (1.10) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT">  (1.17) </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12">
<p> $ (0.39) </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p> $ 1.42 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Weighted average common shares
outstanding </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT">
1,619,952 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT">
1,618,754 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12">
<p> Weighted average and common
equivalent shares </p>
</td>
<td width="12%" valign="TOP" height="12">
<p align="RIGHT">
1,619,952 </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12">
<p align="RIGHT">
1,618,952 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" height="12"></td>
<td width="12%" valign="TOP" height="12"></td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>

<tr>
<td width="80%" valign="TOP" colspan="2" height="12">
<p> See accompanying notes to
consolidated financial statements. </p>
</td>
<td width="4%" valign="TOP" height="12"></td>
<td width="17%" valign="TOP" height="12"></td>
</tr>
</TABLE>
</center>

<br>
<br>


<p> ></p>

<p> ></p>

<center>
<table border cellspacing="1" cellpadding="2" width="640">
<tr>
<td valign="TOP" colspan="11" height="15">
<p align="CENTER"> GENESEE
CORPORATION AND SUBSIDIARIES </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="11" height="15">
<p align="CENTER"> CONSOLIDATED
STATEMENTS OF CASH FLOWS </p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="11" height="15">
<p align="CENTER"> Thirty Nine Weeks
Ended January 29, 2000 and January 30, 1999 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="29%" valign="TOP" colspan="3" height="15">
<p align="CENTER">
UNAUDITED </p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" colspan="3" height="15">
<p><b><i> (Dollars in
thousands) </i></b></p>
</td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"><b><u>
2000 </u></b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"><b><u>
1999 </u></b></p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"><b><u> As
Restated </u></b></p>
</td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p><b><i> Cash flows from operating
activities: </i></b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  Net earnings from continuing
operations </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p> $ 1,146 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p> $ 4,189 </p>
</td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p><i>  Adjustments to reconcile net
earnings to net </i></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p><i>  cash provided by operating
activities: </i></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="53%" valign="TOP" colspan="5" height="15">
<p> Depreciation and
amortization </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 2,031 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 1,319 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="53%" valign="TOP" colspan="5" height="15">
<p> Gain on disposition of
assets </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 0 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 0 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="38%" valign="TOP" colspan="4" height="15">
<p> Deferred tax
provision </p>
</td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 0 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 0 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15">
<p> Other </p>
</td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 1,607 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 1,884 </p>
</td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  Changes in non-cash assets and
liabilities: </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="53%" valign="TOP" colspan="5" height="15">
<p> Trade accounts
receivable </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (497) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (1,048) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="24%" valign="TOP" colspan="3" height="15">
<p> Inventories </p>
</td>
<td width="14%" valign="TOP" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 1,420 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (1,877) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="38%" valign="TOP" colspan="4" height="15">
<p> Other assets </p>
</td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 15 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (115) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="38%" valign="TOP" colspan="4" height="15">
<p> Accounts payable </p>
</td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (791) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (128) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="53%" valign="TOP" colspan="5" height="15">
<p> Accrued expenses and
other </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (1,344) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 931 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="38%" valign="TOP" colspan="4" height="15">
<p> Income taxes payable </p>
</td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (1,215) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 904 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="38%" valign="TOP" colspan="4" height="15">
<p> Other liabilities </p>
</td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (2) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (1,372) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="42%" valign="TOP" colspan="5" height="15">
<p> Net cash provided by continuing
operating activities </p>
</td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 2,370 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 4,687 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="58%" valign="TOP" colspan="6" height="15">
<p> Net cash provided by
discontinued operations </p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 1,666 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 1,855 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="39%" valign="TOP" colspan="4" height="15">
<p><b> Net cash provided by
operating activities </b></p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"><b>
4,036 </b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"><b>
6,542 </b></p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p><b><i> Cash flows from investing
activities: </i></b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  Acquisitions, net of cash
acquired </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 0 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT">
(18,826) </p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" colspan="3" height="15">
<p>  Capital expenditures </p>
</td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (3,417) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (2,690) </p>
</td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  Proceeds from sale of
marketable securities </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 2,418 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 10,319 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" colspan="7" height="15">
<p>  Purchases of marketable
securities and other investments </p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  Investments in and advances to
unconsolidated </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (2,262) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 82 </p>
</td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  real estate investments, net of
distributions </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 91 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 200 </p>
</td>
</tr>

<tr>
<td width="68%" valign="TOP" colspan="7" height="15">
<p>  Net investment in direct
financing and leveraged leases </p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 3,095 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 4,814 </p>
</td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  Withdrawals by minority
interest </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (712) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (513) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="6%" valign="TOP" height="15"></td>
<td width="55%" valign="TOP" colspan="6" height="15">
<p> Net cash used in continuing
investing activities </p>
</td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (6,614) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="58%" valign="TOP" colspan="6" height="15">
<p> Net cash used in discontinued
operations </p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (120) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (1,776) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="39%" valign="TOP" colspan="4" height="15">
<p><b> Net cash used in investing
activities </b></p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"><b>
(907) </b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"><b>
(8,390) </b></p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p><b><i> Cash flows from financing
activities: </i></b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p>  Proceeds from acquisition of
debt </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 1,700 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT">  7,780 </p>
</td>
</tr>

<tr>
<td width="48%" valign="TOP" colspan="5" height="15">
<p>  Principal payments on
debt </p>
</td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (3,114) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 0 </p>
</td>
</tr>

<tr>
<td width="48%" valign="TOP" colspan="5" height="15">
<p>  Payment of dividends </p>
</td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> (1,701) </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> (2,266) </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="42%" valign="TOP" colspan="5" height="15">
<p><b> Net cash (used in) provided
by financing activities </b></p>
</td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"><b>
(3,115) </b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"><b>
5,514 </b></p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="63%" valign="TOP" colspan="6" height="15">
<p> Net increase in cash and cash
equivalents </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 14 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 3,666 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="68%" valign="TOP" colspan="7" height="15">
<p> Cash and cash equivalents at
beginning of the period </p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p align="RIGHT"> 5,836 </p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p align="RIGHT"> 2,692 </p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="58%" valign="TOP" colspan="6" height="15">
<p><b> Cash and cash equivalents at
end of the period </b></p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15">
<p><b> $ 5,850 </b></p>
</td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15">
<p><b> $ 6,358 </b></p>
</td>
</tr>

<tr>
<td width="10%" valign="TOP" height="15"></td>
<td width="19%" valign="TOP" colspan="2" height="15"></td>
<td width="20%" valign="TOP" colspan="2" height="15"></td>
<td width="15%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>

<tr>
<td width="68%" valign="TOP" colspan="7" height="15">
<p> See accompanying notes
to consolidated financial statements. </p>
</td>
<td width="3%" valign="TOP" height="15"></td>
<td width="10%" valign="TOP" height="15"></td>
<td width="5%" valign="TOP" height="15"></td>
<td width="13%" valign="TOP" height="15"></td>
</tr>
</TABLE>
</center>

<br>
<br>


<p> ></p>

<p align="CENTER"> >GENESEE CORPORATION</p>

<p> ></p>

>

<p> ><u>Notes to Consolidated Financial Statements</u></p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> >NOTE (A) Planned Divestiture of the
Corporation’s Brewing Business</p>

<p align="JUSTIFY"> > On December 16, 1999 the
Corporation’s brewing business entered into an agreement
with the owners of City Brewing Company to sell substantially all
of its assets. In accordance with generally accepted accounting
principles ("GAAP"), the results of operations of the brewing
business have been segregated from the Corporation’s
continuing operations and accounted for as discontinued
operations in the accompanying consolidated statements of
earnings and comprehensive income and in the consolidated
statements of cash flows. The results of operations for the
brewing business were as follows:</p>

<p align="JUSTIFY"> ></p>
</div>

<center>
<table border cellspacing="1" cellpadding="7" width="715">
<tr>
<td width="30%" valign="TOP"></td>
<td width="37%" valign="TOP" colspan="2">
<p align="CENTER"> >Thirteen weeks ended</p>
</td>
<td width="34%" valign="TOP" colspan="2">
<p align="CENTER"> >Thirty nine weeks ended</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP">
<p align="JUSTIFY"><i> >(Dollars in thousands)</i></p>
</td>
<td width="19%" valign="TOP">
<p align="CENTER"> >January 29, 2000</p>
</td>
<td width="18%" valign="TOP">
<p align="CENTER"> >January 30, 1999</p>
</td>
<td width="17%" valign="TOP">
<p align="CENTER"> >January 29, 2000</p>
</td>
<td width="17%" valign="TOP">
<p align="CENTER"> >January 30, 1999</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP"></td>
<td width="19%" valign="TOP"></td>
<td width="18%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
</tr>

<tr>
<td width="30%" valign="TOP">
<p align="JUSTIFY"> >Revenue</p>
</td>
<td width="19%" valign="TOP">
<p align="JUSTIFY"> >$ 25,973</p>
</td>
<td width="18%" valign="TOP">
<p align="JUSTIFY"> > $ 29,760</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> >$ 91,158</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> >$ 103,164</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP">
<p align="JUSTIFY"> >Less Beer Taxes</p>
</td>
<td width="19%" valign="TOP">
<p align="JUSTIFY"> > (5,371)</p>
</td>
<td width="18%" valign="TOP">
<p align="JUSTIFY"> > (6,303)</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > (19,024)</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > (22,290)</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP"></td>
<td width="19%" valign="TOP"></td>
<td width="18%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
</tr>

<tr>
<td width="30%" valign="TOP">
<p align="JUSTIFY"> >Net Revenue</p>
</td>
<td width="19%" valign="TOP">
<p align="JUSTIFY"> > 20,602</p>
</td>
<td width="18%" valign="TOP">
<p align="JUSTIFY"> > 23,457</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > 72,134</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > 80,874</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP"></td>
<td width="19%" valign="TOP"></td>
<td width="18%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
</tr>

<tr>
<td width="30%" valign="TOP">
<p align="JUSTIFY"> >Loss from discontinued operations, net of
tax benefit before non-recurring restructuring charge</p>
</td>
<td width="19%" valign="TOP">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> > (426)</p>
</td>
<td width="18%" valign="TOP">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> > (939)</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> > (834)</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> > (1,892)</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP">
<p align="JUSTIFY"> >Non-recurring restructuring charge, net
of tax benefit</p>
</td>
<td width="19%" valign="TOP">
<p align="JUSTIFY"> > 0</p>
</td>
<td width="18%" valign="TOP">
<p align="JUSTIFY"> > 0</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > (956)</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > 0</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP"></td>
<td width="19%" valign="TOP"></td>
<td width="18%" valign="TOP"></td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> ></p>
</td>
<td width="17%" valign="TOP"></td>
</tr>

<tr>
<td width="30%" valign="TOP">
<p align="JUSTIFY"> >Loss from discontinued operations, net of
taxes</p>
</td>
<td width="19%" valign="TOP">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> > (426)</p>
</td>
<td width="18%" valign="TOP">
<p align="JUSTIFY"> > (939)</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > (1,790)</p>
</td>
<td width="17%" valign="TOP">
<p align="JUSTIFY"> > (1,892)</p>
</td>
</tr>

<tr>
<td width="30%" valign="TOP"></td>
<td width="19%" valign="TOP"></td>
<td width="18%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
<td width="17%" valign="TOP"></td>
</tr>
</TABLE>
</center>

<br>
<br>


<div style="margin-left: 8em">
<p align="CENTER"> >GENESEE CORPORATION</p>

<p align="JUSTIFY"> ></p>
</div>

>

<p align="JUSTIFY"> ><u>Notes to Consolidated Financial
Statements</u></p>

<p align="JUSTIFY"> >NOTE (A) Planned Divestiture of the
Corporation’s Brewing Business (continued)</p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> > The net assets of the brewing business
have been excluded from their respective captions and reported as
<i>net assets (liabilities) held for disposal</i> in the
accompanying consolidated balance sheet at January 29, 2000. The
net assets of the brewing business at January 29, 2000 were as
follows:</p>
</div>

<p align="JUSTIFY"> ></p>

<center>
<table border cellspacing="1" cellpadding="7" width="456">
<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"><i> >(Dollars in thousands)</i></p>
</td>
<td width="22%" valign="TOP"></td>
</tr>

<tr>
<td width="78%" valign="TOP"></td>
<td width="22%" valign="TOP"></td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Accounts receivable, net</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> >$ 3,848</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Inventory</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > 5,252</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Net deferred income tax asset, current
portion</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > 1,448</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Other current assets</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > 447</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Accounts payable</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (4,392)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Federal and state beer taxes payable</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (453)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Accrued compensation</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (2,998)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Accrued postretirement benefits, current
portion</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (731)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Accrued expenses and other</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (3,350)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Accrued restructuring</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (925)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP"></td>
<td width="22%" valign="TOP"></td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> > Net liabilities held for disposal
– current</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (1,854)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP"></td>
<td width="22%" valign="TOP"></td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Net property, plant and equipment</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > 24,109</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Net deferred income tax asset, noncurrent
portion</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > 2,861</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Other assets</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > 381</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Accrued postretirement benefits,
noncurrent portion</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (15,332)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> >Other liabilities</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > (119)</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP"></td>
<td width="22%" valign="TOP"></td>
</tr>

<tr>
<td width="78%" valign="TOP">
<p align="JUSTIFY"> > Net assets held for disposal –
noncurrent</p>
</td>
<td width="22%" valign="TOP">
<p align="JUSTIFY"> > 11,900</p>
</td>
</tr>

<tr>
<td width="78%" valign="TOP"></td>
<td width="22%" valign="TOP"></td>
</tr>
</TABLE>
</center>

<br>
<br>


<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> ></p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> >NOTE (B) The Corporation's consolidated
financial statements enclosed herein are unaudited with the
exception of the Consolidated Balance Sheet at May 1, 1999 and,
because of the seasonal nature of the business and the varying
schedule of its special sales efforts, these results are not
necessarily indicative of the results to be expected for the
entire year. In the opinion of management, the interim financial
statements reflect all adjustments, consisting of only normal
recurring items, which are necessary for a fair presentation of
the results for the periods presented. The accompanying financial
statements have been prepared in accordance with GAAP and SEC
guidelines applicable to interim financial information. These
statements should be reviewed in conjunction with the annual
report to shareholders for the year ended May 1, 1999. It is the
Corporation’s policy to reclassify certain amounts in the
prior year consolidated financial statements to conform with the
current year presentation.</p>

<p align="JUSTIFY"> > Certain reclassifications of the January
30, 1999 financial statements have been made to reflect the
Company’s fiscal 2000 discontinued operations which are
planned to be divested by the end of fiscal 2000 (as discussed in
Note A above.)</p>
</div>

<p align="CENTER"> >GENESEE CORPORATION</p>

<p align="CENTER"> ></p>

>

<p> ><u>Notes to Consolidated Financial Statements</u></p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> >NOTE (C) Inventories of continuing
operations are summarized as follows:</p>
</div>

<table cellspacing="0" border="0" cellpadding="7" width="498">
<tr>
<td valign="TOP" colspan="3" height="22">
<p align="CENTER"> >Dollars in thousands</p>
</td>
</tr>

<tr>
<td valign="TOP" colspan="3" height="26">
<p align="RIGHT"><u> >January 29, 2000</u> <u>May
1,1999</u></p>
</td>
</tr>

<tr>
<td width="54%" valign="TOP" height="6">
<p> >Finished goods</p>
</td>
<td width="25%" valign="TOP" height="6">
<p align="RIGHT"> >$ 4,415</p>
</td>
<td width="22%" valign="TOP" height="6">
<p align="RIGHT"> >$ 6,292</p>
</td>
</tr>

<tr>
<td width="54%" valign="TOP" height="6">
<p> >Goods in process</p>
</td>
<td width="25%" valign="TOP" height="6">
<p align="RIGHT"> > 0</p>
</td>
<td width="22%" valign="TOP" height="6">
<p align="RIGHT"> >1,445</p>
</td>
</tr>

<tr>
<td width="54%" valign="TOP" height="4">
<p> >Raw materials, containers and packaging supplies</p>
</td>
<td width="25%" valign="TOP" height="4">
<p align="RIGHT"><u> >5,230</u></p>
</td>
<td width="22%" valign="TOP" height="4">
<p align="RIGHT"><u> >8,677</u></p>
</td>
</tr>

<tr>
<td width="54%" valign="TOP" height="4">
<p> >Total inventories</p>
</td>
<td width="25%" valign="TOP" height="4">
<p align="RIGHT"> >$ 9,645</p>
</td>
<td width="22%" valign="TOP" height="4">
<p align="RIGHT"> >$ 16,414</p>
</td>
</tr>
</TABLE>

<br>
<br>


<div style="margin-left: 8em">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> >NOTE (D) The Corporation’s
consolidated balance sheet includes a mortgage payable with a
remaining principal amount due of $4.7 million, collateralized by
certain land, buildings and equipment. The mortgage payable bears
interest at a fixed rate of 6.49% per annum and requires payments
of principal and interest through 2008. The principal payable for
each fiscal year through the year ending May 1, 2004 is,
respectively, $82,000, $88,000, $93,000, $100,000 and
$106,000.</p>

<p align="JUSTIFY"> > In addition, the Corporation has a $10
million line of credit, which bears interest at LIBOR plus 70
basis points. This line of credit expires in April 2000. At
January 29, 2000, $10 million was available for use under this
instrument.</p>

<p align="JUSTIFY"> > In addition, the Corporation has a $1.7
million term note payable, which bears interest at LIBOR plus 100
basis points for an effective rate of 6.25%. Maturity of this
note is eight years from draw down of funds, which is November
2007. At January 29, 2000, $1.6 million was outstanding and $0
was available for use under this instrument.</p>

<p align="CENTER"> >GENESEE CORPORATION</p>
</div>

>

<p> ><u>Notes to Consolidated Financial Statements</u></p>

<p> ></p>

<p> >NOTE (E) Restructuring Charge</p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> >In the second quarter of fiscal 2000, the
Corporation’s brewing business (see Note A) recorded a
restructuring charge of $1,771,000. This restructuring charge is
related to costs associated with a work force reduction whereby
approximately 50 positions were eliminated as of January 29,
2000. Also included in this restructuring charge are costs
associated with a discontinued package configuration. The
remainder of the employee severance and termination benefits and
other employee related costs will be paid prior to the end of
fiscal 2000.</p>

<p> ></p>

<p> >The restructuring charge and its utilization are
summarized as follows:</p>
</div>

<center>
<table border cellspacing="1" cellpadding="7" width="613">
<tr>
<td width="33%" valign="TOP">
<p align="CENTER">Description</p>
</td>
<td width="18%" valign="TOP">
<p align="CENTER">Fiscal 2000 Charge</p>
</td>
<td width="24%" valign="TOP">
<p>Utilized through 3<sup>rd</sup> Qtr.</p>
</td>
<td width="24%" valign="TOP">
<p align="CENTER"> To be utilized in future</p>
</td>
</tr>

<tr>
<td width="33%" valign="TOP">
<p> Employee severance and termination benefits</p>
</td>
<td width="18%" valign="TOP">
<p> $ 1,357,000</p>
</td>
<td width="24%" valign="TOP">
<p> $ 491,000</p>
</td>
<td width="24%" valign="TOP">
<p> $ 866,000</p>
</td>
</tr>

<tr>
<td width="33%" valign="TOP">
<p> Other employee related costs</p>
</td>
<td width="18%" valign="TOP">
<p> 77,000</p>
</td>
<td width="24%" valign="TOP">
<p> 18,000</p>
</td>
<td width="24%" valign="TOP">
<p> 59,000</p>
</td>
</tr>

<tr>
<td width="33%" valign="TOP">
<p> Discontinued package costs</p>
</td>
<td width="18%" valign="TOP">
<p> 337,000</p>
</td>
<td width="24%" valign="TOP">
<p> 337,000</p>
</td>
<td width="24%" valign="TOP">
<p> 0</p>
</td>
</tr>

<tr>
<td width="33%" valign="TOP"></td>
<td width="18%" valign="TOP"></td>
<td width="24%" valign="TOP"></td>
<td width="24%" valign="TOP"></td>
</tr>

<tr>
<td width="33%" valign="TOP">
<p> Total</p>
</td>
<td width="18%" valign="TOP">
<p> $ 1,771,000</p>
</td>
<td width="24%" valign="TOP">
<p> $ 846,000</p>
</td>
<td width="24%" valign="TOP">
<p> $ 925,000</p>
</td>
</tr>
</TABLE>
</center>

<br>
<br>


<div style="margin-left: 8em">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> >NOTE (F) Segment Reporting</p>

<p align="JUSTIFY"> > With the planned divestiture of its
brewing business (see Note A), the Corporation has three
operating reportable segments: food processing, leasing and real
estate, and corporate. The food processing segment produces dry
side dish, bouillon, soup, drink mix and instant iced tea
products under private label for many of the country’s
largest supermarket chains. The leasing and real estate segment
leases construction, transportation, and other high-value
equipment and machinery, and partners with experienced real
estate developers to invest in certain properties. The corporate
segment retains the Corporation’s investments in marketable
securities generating investment income as well as supporting
corporate costs.</p>

<p align="JUSTIFY"> > The Corporation evaluates performance
based on operating income or loss and earnings before income
taxes.</p>

<p align="JUSTIFY"> > Intersegment sales and transfers are not
material and are eliminated in consolidation. No single customer
accounted for more than 10% of revenues and the
Corporation’s international revenues are not
significant.</p>

<p align="JUSTIFY"> > The Corporation’s reportable
segments, other than corporate, are strategic business units that
offer different products and services. They are managed
separately because each business requires different technology
and marketing strategies.</p>
</div>

<p align="CENTER"> >GENESEE CORPORATION</p>

<p align="JUSTIFY"> ></p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> ><u>Notes to Consolidated Financial
Statements</u></p>

<p align="JUSTIFY"> >NOTE (F) Segment Reporting
(continued)</p>
</div>

<p> >Financial information for the Corporation’s
operating reportable segments is as follows:</p>

<center>
<table border cellspacing="1" cellpadding="2" width="661">
<tr>
<td width="28%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16"></td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"><b> Leasing</b></p>
</td>
<td width="10%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16"></td>
<td width="14%" valign="TOP" height="16"></td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="CENTER"><b> Food</b></p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"><b> And</b></p>
</td>
<td width="10%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="CENTER"><b> Discontinued</b></p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="14%" valign="TOP" height="16"></td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p><i> For the thirteen week period</i></p>

<p><i> Ended January 29, 2000</i></p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="CENTER"><b> Processing</b></p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"><b> Real Estate</b></p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="CENTER"><b> Corporate</b></p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="CENTER"><b> Operations</b></p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="CENTER"><b> Eliminations</b></p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="CENTER"><b> Consolidated</b></p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Net revenues from external customers</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> $ 11,218</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> $ 709</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> $ 11,927</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Depreciation and amortization</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 703</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 703</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Operating income/(loss)</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 542</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 625</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> (148)</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16"></td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 1,019</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Investment income</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 92</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 533</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> (380)</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 245</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Earnings/(loss) before income taxes</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 277</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 882</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 526</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> (337)</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 1,348</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Identifiable assets</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 54,140</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 34,349</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 11,755</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 11,900</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 112,144</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Capital expenditures</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 810</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 810</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
<td width="11%" valign="TOP" height="17"></td>
<td width="10%" valign="TOP" height="17"></td>
<td width="13%" valign="TOP" height="17"></td>
<td width="13%" valign="TOP" height="17"></td>
<td width="14%" valign="TOP" height="17"></td>
</tr>

<tr>
<td width="28%" valign="TOP" height="29">
<p><i> For the thirteen week period</i></p>

<p><i> Ended January 30, 1999</i></p>
</td>
<td width="12%" valign="TOP" height="29"></td>
<td width="11%" valign="TOP" height="29"></td>
<td width="10%" valign="TOP" height="29"></td>
<td width="13%" valign="TOP" height="29"></td>
<td width="13%" valign="TOP" height="29"></td>
<td width="14%" valign="TOP" height="29"></td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Net revenues from external customers</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> $ 11,134</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> $ 838</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="CENTER"> $ 11,972</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Depreciation and amortization</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 538</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 538</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Operating income/(loss)</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 693</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 787</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="CENTER"> (164)</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 1,316</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Investment income</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 21</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 78</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 702</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> (551)</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 250</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Earnings/(loss) before income taxes</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 473</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 3,985</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 2,878</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> (2,688)</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 4,648</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Identifiable assets</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 55,453</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"> 37,777</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 3,382</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 50,512</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 147,124</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="16">
<p> Capital expenditures</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 6</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="13%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="14%" valign="TOP" height="16">
<p align="RIGHT"> 6</p>
</td>
</tr>

<tr>
<td width="28%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
<td width="11%" valign="TOP" height="17"></td>
<td width="10%" valign="TOP" height="17"></td>
<td width="13%" valign="TOP" height="17"></td>
<td width="13%" valign="TOP" height="17"></td>
<td width="14%" valign="TOP" height="17"></td>
</tr>

<tr>
<td width="28%" valign="TOP" height="31">
<p><i> (Dollars in thousands)</i></p>
</td>
<td width="12%" valign="TOP" height="31"></td>
<td width="11%" valign="TOP" height="31"></td>
<td width="10%" valign="TOP" height="31"></td>
<td width="13%" valign="TOP" height="31"></td>
<td width="13%" valign="TOP" height="31"></td>
<td width="14%" valign="TOP" height="31"></td>
</tr>
</TABLE>
</center>

<br>
<br>


<p align="CENTER"> >GENESEE CORPORATION</p>

>

<p align="JUSTIFY"> ><u>Notes to Consolidated Financial
Statements</u></p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> >NOTE (F) Segment Reporting
(continued)</p>

<p align="JUSTIFY"> ></p>
</div>

<p> > Financial information for the Corporation’s
operating reportable segments is as follows:</p>

<table border cellspacing="1" cellpadding="2" width="650">
<tr>
<td width="29%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16"></td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"><b> Leasing</b></p>
</td>
<td width="10%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16"></td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16"></td>
<td width="13%" valign="TOP" height="16">
<p align="CENTER"><b> Food</b></p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"><b> And</b></p>
</td>
<td width="10%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="CENTER"><b> Discontinued</b></p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16"></td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p><i> For the thirty nine week period</i></p>

<p><i> Ended January 29, 2000</i></p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="CENTER"><b> Processing</b></p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"><b> Real Estate</b></p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="CENTER"><b> Corporate</b></p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="CENTER"><b> Operations</b></p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="CENTER"><b> Eliminations</b></p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="CENTER"><b> Consolidated</b></p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Net revenues from external customers</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> $ 33,060</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> $ 2,479</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> $ 35,539</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Depreciation and amortization</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 2,031</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 2,031</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Operating income/(loss)</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 254</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 2,262</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> (532)</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 1,984</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Investment income</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 250</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 1,631</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> (1,201)</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 680</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Earnings/(loss) before income taxes</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> (595)</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 2,253</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> (1,292)</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 1,757</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 2,123</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Identifiable assets</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 54,140</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 34,349</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 11,755</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 11,900</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 112,144</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Capital expenditures</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 3,417</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 3,417</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="17"></td>
<td width="13%" valign="TOP" height="17"></td>
<td width="11%" valign="TOP" height="17"></td>
<td width="10%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
</tr>

<tr>
<td width="29%" valign="TOP" height="29">
<p><i> For the thirty nine week period</i></p>

<p><i> Ended January 30, 1999</i></p>
</td>
<td width="13%" valign="TOP" height="29"></td>
<td width="11%" valign="TOP" height="29"></td>
<td width="10%" valign="TOP" height="29"></td>
<td width="12%" valign="TOP" height="29"></td>
<td width="12%" valign="TOP" height="29"></td>
<td width="12%" valign="TOP" height="29"></td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Net revenues from external customers</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> $ 30,520</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> $ 2,607</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> $ -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="CENTER"> $ 33,127</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Depreciation and amortization</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 1,319</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 1,319</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Operating income/(loss)</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 1,608</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 2,463</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="CENTER"> (764)</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 3,307</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Investment income</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 21</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 243</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 3,045</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> (1,650)</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 1,659</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Earnings/(loss) before income taxes</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 1,131</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> 4,990</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 3,873</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> (2,518)</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 7,476</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Identifiable assets</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 55,453</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="CENTER"> 37,777</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> 3,382</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 50,512</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 147,124</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="16">
<p> Capital expenditures</p>
</td>
<td width="13%" valign="TOP" height="16">
<p align="RIGHT"> 2,690</p>
</td>
<td width="11%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="10%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16"></td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> -</p>
</td>
<td width="12%" valign="TOP" height="16">
<p align="RIGHT"> 2,690</p>
</td>
</tr>

<tr>
<td width="29%" valign="TOP" height="17"></td>
<td width="13%" valign="TOP" height="17"></td>
<td width="11%" valign="TOP" height="17"></td>
<td width="10%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
<td width="12%" valign="TOP" height="17"></td>
</tr>

<tr>
<td width="29%" valign="TOP" height="31">
<p><i> (Dollars in thousands)</i></p>
</td>
<td width="13%" valign="TOP" height="31"></td>
<td width="11%" valign="TOP" height="31"></td>
<td width="10%" valign="TOP" height="31"></td>
<td width="12%" valign="TOP" height="31"></td>
<td width="12%" valign="TOP" height="31"></td>
<td width="12%" valign="TOP" height="31"></td>
</tr>
</TABLE>

<br>
<br>


<p align="CENTER"> ></p>

<div style="margin-left: 8em">
<p align="CENTER"> >GENESEE CORPORATION</p>

<p align="JUSTIFY"> ></p>
</div>

>

<p align="JUSTIFY"> ><u>Notes to Consolidated Financial
Statements</u></p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> >NOTE (G) Supplemental Cash Flow
Information</p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> > Cash paid for taxes was $44,000 and
$67,000 for the thirteen week period ended January 29, 2000 and
January 30, 1999, respectively; cash paid for interest was
$146,000 and $235,000 for the thirteen week period ended January
29, 2000 and January 30, 1999, respectively.</p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> > Cash paid for taxes was $1,529,000 and
$771,000 for the thirty nine week period ended January 29, 2000
and January 30, 1999, respectively; cash paid for interest was
$438,000 and $395,000 for the thirty nine week period ended
January 29, 2000 and January 30, 1999, respectively.</p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> ></p>

<p align="JUSTIFY"> >NOTE (H) Subsequent Event – Chief
Executive Officer’s Retirement Agreement</p>

<p align="JUSTIFY"> > On March 2, 2000 the Corporation entered
into a retirement agreement with its Chief Executive Officer.
Under this agreement, the Corporation will pay retirement
benefits that will result in a one-time pre-tax charge against
fourth quarter 2000 earnings from continuing operations of
approximately $1.2 million.</p>

<p align="CENTER"> >GENESEE CORPORATION</p>

<p align="JUSTIFY"> >Item 2. Management's Discussion and
Analysis of Financial Condition and Results of Operations</p>
</div>

<p align="JUSTIFY"> > This financial review should be read in
conjunction with the accompanying consolidated financial
statements and contains management’s discussion and
analysis of the Corporation’s results of operations and
liquidity. The discussion of operating results and liquidity and
capital resources for fiscal 2000 and fiscal 1999 excludes the
discontinued brewing business discussed in Note (A) to the
accompanying consolidated financial statements.</p>

<p align="JUSTIFY"> >CONTINUING OPERATIONS</p>

<p align="JUSTIFY"> ><u>Comparison of 13 weeks ended January
29, 2000 to 13 weeks ended January 30, 1999</u></p>

<p align="JUSTIFY"> > Consolidated net revenues from
continuing operations for the thirteen weeks ended January 29,
2000 were $11.9 million, a decrease of $45,000 from consolidated
net revenues reported for the same period last year, primarily
due to lower lease revenue at Genesee Ventures, Inc.</p>

<p align="JUSTIFY"> > On a consolidated basis, the Corporation
reported operating income from continuing operations of $1.0
million, which was an decrease of $297,000 as compared to the
same period last year, also due primarily to the lower lease
revenue at Genesee Ventures, Inc. and a result of expenses
incurred by the Foods Division related to the transitioning of
production to the Medina, New York facility.</p>

<p align="JUSTIFY"> > On a consolidated basis, the Corporation
reported earnings from continuing operations of $728,000, or $.45
basic and diluted earnings per share, in the third quarter this
year, compared to earnings from continuing operations of $2.7
million, or $1.66 basic and diluted earnings per share, for the
same period last year. This decrease in earnings from continuing
operations is primarily related to a $3.4 million pre-tax gain
realized by Genesee Ventures, Inc. in 1999 from the sale of its
investment in Lloyd’s Food Products, Inc. during the third
quarter of fiscal 1999, partially offset by significant expenses
incurred by the Foods Division related to the transitioning of
production to the Medina, New York facility.</p>

<p align="JUSTIFY"> > The Corporation reported a net loss from
discontinued operations of $426,000, net of a tax benefit of
$363,000, or ($.26) basic and diluted loss per share for the
third quarter of fiscal 2000, compared to a net loss from
discontinued operations of $939,000, net of a tax benefit of
$799,000, or ($.58) basic and diluted loss per share for the same
period last year.</p>

<p align="JUSTIFY">  </p>

<p align="CENTER">  >GENESEE
CORPORATION </p>

<p align="JUSTIFY">  >Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of </p>

<p align="JUSTIFY"> <u> >Foods
Division</u> </p>

<p align="JUSTIFY"> <u> Net sales
for the Foods Division were $11.2 million in the third quarter of
fiscal 2000, compared to $11.1 million for the third quarter last
year.</u> </p>

<p align="JUSTIFY"> <u> Gross profit
for the Foods Division decreased $512,000 to $2.0 million in the
third quarter of fiscal 2000, compared to $2.5 million for the
third quarter last year. The decrease in gross profit was
primarily attributable to $477,000 of expenses incurred by the
Foods Division in the third quarter of fiscal 2000 in
transitioning production to the Medina, New York facility that
the Foods Division acquired in October 1998.</u> </p>

<p align="JUSTIFY"> <u>The
consolidation of all operations at a single location, which is
substantially complete, is expected to generate efficiencies and
cost savings for the Foods Division going forward.</u> </p>

<p align="JUSTIFY"> <u> The Foods
Division’s selling, general and administrative expenses
decreased $296,000 to $1.4 million in the third quarter of fiscal
2000 compared to the same period last year. This decrease is
primarily a result of the elimination of duplicate administrative
expenses of TKI Foods, Inc.</u> </p>

<p align="JUSTIFY">  The Foods
Division recorded operating income of $542,000 in the third
quarter of fiscal 2000, which was $151,000 less than the
operating income reported in the third quarter last year
primarily as a result of expenses incurred by the Foods Division
related to the transitioning of production to the Medina, New
York facility. </p>

<p align="JUSTIFY">  > Other
expense increased $47,000 to $266,000 in the third quarter of
fiscal 2000 as compared to the same period last year. </p>

<p align="JUSTIFY">  > </p>

 >
<p align="JUSTIFY">  ><u>Genesee
Ventures</u> </p>

<p align="JUSTIFY">  > </p>

<p align="JUSTIFY">  > Genesee
Ventures, Inc., the Corporation’s equipment leasing and
real estate investment subsidiary, reported operating income of
$625,000 for the third quarter of fiscal 2000, which was $162,000
less than the third quarter of fiscal 1999. This decrease was
primarily a result of reduced lease revenue associated with the
maturation of certain leases that were not renewed or
replaced. </p>

<p align="JUSTIFY">  > During the
third quarter of fiscal 2000, Genesee Ventures recorded $407,000
that was associated with the sale of Genesee Venture’s
investment in Lloyd’s Food Products, Inc. during fiscal
1999. The initial gain of $3.4 million on the sale was recorded
during the third quarter of fiscal 1999. </p>

<p align="JUSTIFY">  >In August
1999, the Corporation approved a plan to wind down its equipment
leasing business in light of changes in many of the factors that
influenced the Corporation’s decision to invest in
equipment leasing. These factors include changes in the
Corporation’s capital requirements, changes in the
competitive conditions in the equipment leasing business, a
reduction in the tax advantages generated by Cheyenne Leasing
Company as a result of lower operating income from the
Corporation’s brewing business, and a decision by the
Corporation’s co-venturer in Cheyenne Leasing Company to
phase out its involvement in the equipment leasing
business. </p>

<p align="JUSTIFY">  > </p>

<p align="JUSTIFY">  > Under the
wind down plan, Cheyenne Leasing Company will not fund any new
leases after December 31, 1999 and will manage its existing lease
portfolio to maximize lease revenues and residual income. Based
on current projections, Cheyenne Leasing Company’s
operating income is expected decline as the remaining leases in
Cheyenne’s portfolio mature. The final leases are expected
to mature during 2007. </p>

<p>  > </p>

<p>  > </p>

<p>  > </p>

<p align="CENTER">  >GENESEE
CORPORATION </p>

<p align="JUSTIFY">  >Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of </p>

<div style="margin-left: 8em">
<p align="JUSTIFY">  > Operations
(continued) </p>

<p align="JUSTIFY">  > </p>
</div>

<p align="JUSTIFY">
><u>Comparison of 39 weeks ended January 29, 2000 to 39 weeks
ended January 30, 1999</u> </p>

<p align="JUSTIFY">  >
Consolidated year-to-date net revenues from continuing operations
were $35.5 million, an increase of $2.4 million from consolidated
net revenues reported for the same period last year, due to
increased sales by the Corporation’s Foods
Division. </p>

<p align="JUSTIFY">  >On a
consolidated basis, the Corporation reported operating income
from continuing operations of $2.0 million, which was a decrease
of $1.3 million as compared to the same period last year, due
primarily to costs associated with transitioning of production to
the Medina, New York facility that the Foods Division acquired in
October 1998. </p>

<p align="JUSTIFY">  > On a
consolidated basis, the Corporation reported year-to-date
earnings from continuing operations of $1.1 million, or $.71
basic and diluted earnings per share, compared to earnings from
continuing operations of $4.2 million, or $2.59 basic and diluted
earnings per share, for the same period last year. This decrease
in earnings is primarily a result of the $3.4 million gain
realized in the third quarter of fiscal 1999 from the sale of
Genesee Ventures, Inc.’s investment in Lloyd’s Food
Products, Inc. </p>

<p align="JUSTIFY">  > The
Corporation reported a year-to-date net loss from discontinued
operations of $1.8 million, net of a tax benefit of $1.5 million,
or ($1.10) basic and diluted loss per share for the third quarter
of fiscal 2000, compared to a year-to-date net loss from
discontinued operations of $1.9 million, net of a tax benefit of
$1.6 million, or ($1.17) basic and diluted loss per share for the
same period last year. </p>

<p align="CENTER">  >GENESEE
CORPORATION </p>

<div style="margin-left: 8em">
<p align="JUSTIFY">  >Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of </p>

<p align="JUSTIFY">  > Operations
(continued) </p>
</div>

<p align="JUSTIFY">  > </p>

<p align="JUSTIFY">  ><u>Foods
Division</u> </p>

<p align="JUSTIFY">  > </p>

<p align="JUSTIFY">  > Net sales
for the Foods Division were $33.1 million in the first three
quarters of fiscal 2000, compared to $30.5 million for the same
time period last year. The increase in net sales was primarily
attributable to $4.0 million in year-to-date sales of artificial
sweeteners and other private label food products of TKI Foods,
Inc. and Spectrum Foods, Inc., which were acquired by the
Corporation during the second quarter of fiscal 1999. Partially
offsetting the increase in net sales was lower than expected
sales of iced tea mix and side dishes due to competitive pressure
from branded label competitors. </p>

<p align="JUSTIFY">  > Side dish
sales continued to be adversely affected by heavy promotional
activity by the major branded side dish producer. This
promotional pricing has reduced the price spread between the
branded side dish line and the Foods Division’s private
label side dishes, making the private label product less
attractive to consumers. In addition, another major branded food
producer recently introduced a new line of side dish products
that will compete with both the existing brand leader and the
Foods Division’s private label side dish line. This new
side dish brand is being introduced with heavy promotional
support and is expected to increase the competitive pressure on
the Foods Division’s private label business. </p>

<p align="JUSTIFY">  > Revenues
and profit margins from iced tea mix sales declined, largely as a
result of previously reported efforts by a large Canadian sugar
refiner to displace the Foods Division’s private label iced
tea mix in key chain accounts. Although the Foods Division has
not lost any key accounts, it had to reduce iced tea pricing to
retain them. In addition, the overall decline of this mature
category resulted in lower unit sales in the first three
quarters. The challenges facing the Foods Division’s iced
tea and side dish business are normal competitive pressures that
affect products in the mature stage of their life cycle. These
expected product maturity factors underscore the Foods
Division’s strategy to expand its product offerings either
through acquisition or internally developed new
products. </p>

<p align="JUSTIFY">  > The
addition of bouillon and artificial sweeteners to the Foods
Division’s product line has helped to offset lower iced tea
mix and side dish sales. However, the Foods Division’s
sweetener business faces a potential competitive threat from the
decision by the major producer of branded artificial sweeteners
to introduce a line of private label artificial sweeteners,
targeting many of the Foods Division’s key chain accounts.
The Foods Division reduced its sweetener prices to counter this
potential threat, which is expected to reduce revenues and profit
margins from the sweetener business. It is not clear what long
term impact this new private label sweetener line will have on
the Foods Division’s sweetener business because the
producer announced on February 4, 2000 that it had reached an
agreement to sell its packaged sweetener business which could
impact the efforts to displace the Foods Division from key
accounts. </p>

<p align="CENTER">  >GENESEE
CORPORATION </p>

<p align="JUSTIFY">  >Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of </p>

<div style="margin-left: 8em">
<p align="JUSTIFY">  > Operations
(continued) </p>
</div>

<p align="JUSTIFY">  > Gross
profit for the Foods Division decreased $555,000 to $5.6 million
in the first three quarters of fiscal 2000, compared to $6.2
million for the same time period last year. The decrease in gross
profit was attributable to lower sales of iced tea mix, side
dishes, bouillon and artificial sweeteners. Also contributing to
the decrease in gross profit was $1.5 million of expenses
incurred by the Foods Division in the first three quarters of
fiscal 2000 in transitioning production to the Medina, New York
facility that the Foods Division acquired in October 1998. The
consolidation of all operations at a single location, which is
substantially complete, is expected to generate efficiencies and
cost savings for the Foods Division going forward. </p>

<p align="JUSTIFY">  > The Foods
Division’s selling, general and administrative expenses
decreased $54,000 in the first three quarters of fiscal 2000
compared to the same period last year. </p>

<p align="JUSTIFY"> The Foods Division recorded
operating income of $254,000 in the first three quarters of
fiscal 2000, which was $1.3 million less than the operating
income reported in the first three quarters of last year which
was a result of the transitioning expenses mentioned
above.   </p>

<p align="JUSTIFY"> >Other expense increased
$374,000 to $850,000 in the first three quarters of fiscal 2000
as compared to the same period last year. This increase is
primarily the result of $221,000 of interest expense on the
mortgage and term loan pertaining to the Medina
facility.   </p>

<p align="JUSTIFY"> ><u>Genesee
Ventures</u>   </p>

<p align="JUSTIFY"> > Genesee Ventures, Inc.,
the Corporation’s equipment leasing and real estate
investment subsidiary, reported operating income of $2.3 million
for the first three quarters of fiscal 2000, which was $201,000
less than the first three quarters of fiscal 1999. The lower
income for Genesee Ventures, Inc. was primarily the result of
reduced lease revenue as certain leases mature and are not
renewed or replaced during the wind down of Cheyenne Leasing
Company.   </p>

<p align="JUSTIFY"> >In August 1999, the
Corporation approved a plan to wind down its equipment leasing
business in light of changes in many of the factors that
influenced the Corporation’s decision to invest in
equipment leasing, including changes in the Corporation’s
capital requirements, changes in the competitive conditions in
the equipment leasing business, a reduction in the tax advantages
generated by Cheyenne Leasing Company as a result of lower
operating income from the Corporation’s brewing business,
and a decision by the Corporation’s co-venturer in Cheyenne
Leasing Company to phase out its involvement in the equipment
leasing business.   </p>

<p align="JUSTIFY"> > Under the wind down plan,
Cheyenne Leasing Company will not fund any new leases after
December 31, 1999 and will manage its existing lease portfolio to
maximize lease revenues and residual income. Based on current
projections, Cheyenne Leasing Company’s operating income is
expected to decline as the remaining leases in Cheyenne’s
portfolio mature.   </p>

<p align="JUSTIFY"> > Genesee Ventures, Inc.
earnings before taxes decreased $2.7 million to $2.3 million as
compared to $5.0 million for the same period last year. The
decrease in earnings was primarily due to the $3.4 million gain
recognized in the third quarter of fiscal 1999 associated with
the sale of Genesee Ventures’ investment in Lloyd’s
Food Products, Inc<i>.</i> offset by a $602,000 gain recognized
during the first three quarters of fiscal 2000 which was also
associated with the sale of the Lloyd’s Food Products, Inc.
investment.   </p>

<p align="CENTER"> >GENESEE
CORPORATION   </p>

<p align="JUSTIFY"> >Item 2. Management's
Discussion and Analysis of Financial Condition and Results
of   </p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> > Operations
(continued)   </p>
</div>

<p align="JUSTIFY"> >   </p>

<p align="JUSTIFY"> ><u>LIQUIDITY AND CAPITAL
RESOURCES (from continuing
operations)</u>   </p>

<p align="JUSTIFY"> > Cash and cash equivalents
and marketable securities showed very little change from May 1,
1999 to January 29, 2000. Cash and cash equivalents totaled $5.8
million at January 29, 2000 and at May 1, 1999. Marketable
securities totaled $7.8 million at January 29, 2000 and $8.0
million at May 1, 1999.   </p>

<p align="JUSTIFY"> >   </p>

<p align="JUSTIFY"> > Net trade accounts
receivable decreased by $6.1 million of which $6.6 million
relates to the discontinued brewing business which is included in
the balance at May 1, 1999. The increase of $440,000 from the May
1, 1999 balance is primarily attributable to increased sales
volume at the Foods Division.   </p>

<p align="JUSTIFY"> > Inventories decreased by
$6.8 million, of which $5.4 million relates to the discontinued
brewing business and is included in the balance at May 1, 1999.
Inventories were further decreased by $1.4 million, which is the
result of a concerted effort by the Foods Division’s
management to reduce inventory levels of that
subsidiary.   </p>

<p align="JUSTIFY"> > Net property, plant and
equipment decreased by $24.8 million, of which $26.9 million
relates to the discontinued brewing business which is included in
the balance at May 1, 1999. The remaining increase by $2.1
million from May 1, 1999 to January 29, 2000 is primarily a
result of capital additions to the Foods Division facility in
Medina, New York as well as other Foods Division acquisitions of
property, plant and equipment being offset by normal depreciation
and amortization of such assets.   </p>

<p align="JUSTIFY"> > Investments in direct
financing and leveraged leases decreased $3.1 million from May 1,
1999 as a result of a large number of leases maturing and not
being replaced with new leases as Cheyenne Leasing Company is not
actively seeking new leasing opportunities and is in a wind down
phase.   </p>

<p align="JUSTIFY"> > Current liabilities
decreased $17.4 million, of which $14.0 million relates to the
discontinued brewing business which is included in the balance at
May 1, 1999. The remaining $3.4 million decrease in current
liabilities is the result of the satisfaction of the $3.0 million
line of credit that was paid down in the third quarter of fiscal
2000, $792,000 less in accounts payable due to timing of
payments, $1.2 million less in income taxes payable due to
significant estimated tax payments being made during the second
quarter of fiscal 2000, $1.4 million less in accrued compensation
and other accrued expenses due to certain accrued amounts related
to the acquisition of TKI Foods, Inc. having been paid off during
the first three quarters of fiscal 2000, offset by approximately
$3.0 million of discontinued operation balance sheet
reclassifications related to deferred income tax liabilities and
net liabilities held for disposal.   </p>

<p align="JUSTIFY"> > Notes payable increased
$1.6 million net of repayments due to the draw down of funds on a
multiple disbursement term note, which is being used for
renovation of the Foods Division’s new production facility
in Medina, New York.   </p>

<p>
  > The Corporation is re-evaluating its capital
resources in light of its decision to sell the assets of its
brewing business and the decision to wind down its equipment
leasing business. Until this evaluation is completed, the
Corporation is not actively searching for new acquisition
opportunities for its Foods Division, instead devoting resources
to completing the transition of the Foods Division to its Medina,
New York production facility and internal development of new
private label products and extensions of existing product
lines.   </p>

<p align="CENTER"> >GENESEE
CORPORATION   </p>

<p align="JUSTIFY"> >Item 2. Management's
Discussion and Analysis of Financial Condition and Results
of   </p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> > Operations
(continued)   </p>
</div>

<p align="JUSTIFY"> > In connection with the
decision to sell the assets of its brewing business and the wind
down of its equipment leasing business, the Corporation is
evaluating its projected cash flows, capital resources and
liquidity requirements. As part of this assessment, the
Corporation’s Board of Directors is reviewing the
Corporation’s dividend policy to determine whether
shareholder value would be enhanced by a change in the
Corporation’s current policy of regular and special
dividend payments.   </p>

>
<p align="JUSTIFY"> ><i><u>Year
2000</u></i>   </p>

<p align="JUSTIFY"> > The year 2000 issue was
the result of computer hardware and software systems and other
equipment with embedded chips or processors that used only two
digits rather than four to represent the year. Time-sensitive
software could have recognized a date using "00" as the year 1900
rather than 2000. These systems could have failed to operate or
could have been unable to process data accurately as a result of
this flaw. The year 2000 issue could have arisen at any point in
the supply chain, manufacturing process, distribution channels or
information systems of the Corporation, its subsidiaries and
third parties with which it does
business.   </p>

<p align="JUSTIFY"> > The Corporation assembled
a task force and developed a formal plan to ensure that all of
its significant date-sensitive computer software and hardware
systems and other equipment utilized in its various
manufacturing, distribution and administration activities would
be Year 2000 compliant and operational on a timely basis. The
plan also included an assessment process to determine that the
Corporation’s significant customers and suppliers would
also be Year 2000 compliant.   </p>

<p align="JUSTIFY"> > The Corporation utilized
both internal and external resources to achieve Year 2000
preparedness. The total cost to the Corporation and its
subsidiaries for Year 2000 preparedness was approximately $1.7
million. The Corporation and its subsidiaries encountered no
difficulties associated with the Year 2000 issue and did not have
to activate any of their Year 2000 contingency plans. The
Corporation does not anticipate any substantive problems related
to this issue going forward.   </p>

<p align="CENTER"> >GENESEE
CORPORATION   </p>

<div style="margin-left: 8em">
<p align="JUSTIFY"> >Item 2. Management's
Discussion and Analysis of Financial Condition and Results
of   </p>

<p align="JUSTIFY">  > Operations
(continued)   </p>

<p align="JUSTIFY">   ><i><u>Forward-Looking
Statements</u></i>   </p>

<p align="JUSTIFY"> > This report contains
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements may include
statements about the operations and prospects for the Corporation
and its subsidiary businesses, and statements about industry
trends and conditions that may affect the performance or
financial condition of the Corporation and its subsidiary
businesses. These forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from those expressed in or implied by the statements.
The most important factors that could cause actual results to
differ from the expectations stated in these forward-looking
statements include, among others, the inability to complete or
the delay in the sale of the brewing business on satisfactory
terms; a shift in consumer preferences away from store-brand,
private label food products; increased competition from branded
food product producers that might adversely affect sales of
private label products; continued price promotion by the major
side dish brand which is adversely impacting sales of the Foods
Division’s private label side dish products; continued
price competition from low cost imported iced tea producers and
the possibility that the Foods Division may not be able to source
sufficient supply of low price sugar to produce a price
competitive private label iced tea product; the possibility that
the Foods Division might not achieve the expected synergies from
the integration of TKI Foods and Spectrum Foods and relocation of
all operations into a single facility in Medina New York; and the
possibility that Cheyenne Leasing Company may not achieve the
residual value projected for equipment coming off leases as
Cheyenne’s lease portfolio
matures.   </p>

<p align="CENTER"> >GENESEE
CORPORATION   </p>

<p>
  >PART II. OTHER
INFORMATION   </p>



<p>
   >Item 6.
Exhibits and Reports on Form 8-K    </p>

<div style="margin-left: 6em" type="a">
<ol type="a">
<li>

><u>Exhibits.</u> The following exhibit is attached to this
report:    </li>
</ol>
</div>

<div style="margin-left: 10em">
<div style="margin-left: 2em">
<p>
   >Exhibit 10-1
- - Severance Agreement and General Release with C.S.
Wehle.    </p>
</div>

<p>
   > Exhibit 10-2
- - Employment Agreement with S.T. Hubbard,
Jr.    </p>

<div style="margin-left: 2em">
<p>
   >(b) <u>
Reports on Form 8-K.</u> The Corporation filed a report on Form
8-K on December 17, 1999 to report the announcement of an
agreement by Genesee Brewing Company to sell substantially all of
its assets to the owners of City Brewing
Company.    </p>
</div>
</div>


<p>

>    </p>

<p>
   >Pursuant to
the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly
authorized.    </p>

<p>
   > GENESEE
CORPORATION    </p>

<p>
   >Date: <u>
03/09/00</u> <u> /s /Samuel T. Hubbard,
Jr.</u>    </p>

<p>
   > Samuel T.
Hubbard, Jr.    </p>

<p>
   > President
and Chief Executive Officer    </p>

<p>

>    </p>

<p>

>    </p>

<p>
   >Date: <u>
03/09/00</u> <u> /s / John B.
Henderson</u>    </p>

<p>
   > John B.
Henderson    </p>

<p>
   > Senior Vice
President and Chief Financial
Officer    </p>

>
<p>
   > GENESEE
CORPORATION    </p>

<p>
  EXHIBIT> INDEX     </p>

<p>
><u>Exhibit Number</u> <u>Exhibit</u> <u>
Page</u>     </p>

<p>
  >10-1 Severance Agreement and General Release
23     </p>

<p>
   >dated December 15, 1999 between
the      </p>

<p>
  > Corporation and Charles S.
Wehle      </p>

<p>
  >10-2 Employment Agreement dated
December 15, 1999
26      </p>

<div style="margin-left: 20em">
<p>
  >between the Corporation and
Samuel T. Hubbard,
Jr.      </p>
</div>

  <b><u>
></u></b>
<p align="CENTER"> <b><u> >Severance
Agreement and General
Release</u></b>      </p>

<p>
  <b>In recognition of the many years of
dedicated service Charles S. Wehle has rendered to Genesee
Corporation and its wholly owned subsidiary The Genesee Brewing
Company, Inc. (hereinafter referred to collectively as
"Genesee"), and in recognition of his substantial contributions
to the growth and success of Genesee, the parties wish to enter
into the following Severance Agreement and General
Release.</b>      </p>

<p>
  <b>Charles S. Wehle (the "Executive")
will resign as President of The Genesee Brewing Company, Inc. on
January 15, 2000 but will continue to be employed by Genesee on
an interim basis, rendering services as needed from time to time.
On May 15, 2000, Executive will terminate active employment with
Genesee.</b>      </p>

<div style="margin-left: 4em">
<p>
  <b>I.<b> Compensation and
Benefits.</b> The following payments and benefits shall be
provided to
Executive:</b>      </p>

<div style="margin-left: 4em">
<p>
  A.<b> Base Salary.</b> Executive’s current base
salary of $206,000 will be paid through May 15,
2000.     </p>

<p>
  B.<b> Retirement Incentive Payments.</b> In exchange for
Executive’s general release, as described in section III of
this Agreement, Genesee will make the following retirement
incentive payments to
Executive:     </p>

<div style="margin-left: 4em">
<p>
1. $250,000, less the amount of normal salary paid from
January 15, 2000 through May 15, 2000, to be paid on May 15,
2000;     </p>

<p>
2. $250,000 to be paid on January 1,
2001.     </p>
</div>

<p>
C. <b>Perquisites.</b> Executive shall be entitled to all
existing perquisites through May 15,
2000.     </p>

<p>
D. <b>Taxation.</b> Executive acknowledges and agrees
that all payments made to Executive pursuant to this Agreement
are gross amounts, subject to applicable federal and state tax
withholding and reporting, as
required.     </p>
</div>

<p>
II.<b> Employee Benefit Plans.</b> This Agreement shall
not affect the amount of Executive’s vested benefits under
the employee benefit plans in which he participates. In
accordance with the plan terms, Executive shall be treated as an
active employee under the benefit plans in which he participates
until May 15, 2000. After Executive terminates active employment
on May 15, 2000, he shall be treated as a retired participant
under the benefit plans, including the Genesee Corporation 1992
Stock Plan ("Stock Option Plan"), and he shall be entitled to all
the rights of a retired participant under the terms of those
plans.     </p>

<div style="margin-left: 4em">
<p>
A. <b>Profit Sharing Plan.</b> Executive will participate
in the Genesee Corporation Profit Sharing Retirement Plan through
the plan year ending April 30,
2000.     </p>

<p>
B. <b>Executive Benefit Plans.</b> Executive will
continue to participate as an active employee in the following
executive benefit plans, according to the terms of those plans,
until May 15, 2000:     </p>

<div style="margin-left: 4em">
<p>
1. Genesee Corporation 1986 Incentive Bonus Plan
("Incentive Bonus Plan");     </p>

<p>
2. Genesee Corporation Stock Bonus Incentive Program
("Stock Bonus Plan");     </p>

<p>
3. Genesee Corporation Benefit Restoration Plan ("Benefit
Restoration Plan"); and     </p>

<p>
4. Stock Option
Plan.     </p>
</div>

<p>
C. <b>Welfare Benefit
Plans.</b>     </p>

<div style="margin-left: 4em">
<p>
1.<b> Life Insurance.</b> Executive may participate in
the Group Life Insurance Plan until May 15, 2000. Thereafter,
Executive may convert his group policy at his own
expense.     </p>

<p>
2.<b> Medical, Dental, and Disability Plans.</b>
Executive may participate in Genesee’s medical, dental, and
disability plans as an active employee until May 15,
2000.     </p>
</div>
</div>
</div>

<p>
III.<b> General
Release.</b>     </p>

<div style="margin-left: 8em">
<p>
A. <b>Release.</b> In exchange for Genesee entering into
this Agreement and making the payments referred to above,
Executive waives and releases any and all rights or claims that
he has against Genesee, its affiliated companies, or any of their
respective officers, directors, agents, employees, successors or
assigns. The rights and claims so waived and released shall
include, but are not limited to, those arising under local, state
and federal statutory or common law (including claims of breach
of contract and wrongful discharge), and any law relating to sex,
age, race, religious, handicap, or national origin discrimination
(including, but not limited to, any claims under the Age
Discrimination in Employment Act (ADEA), Title VII of the Civil
Rights Act of 1964, the New York Human Rights Law, and the
Employee Retirement Income Security Act
(ERISA)).     </p>

<p>
B. <b>Knowing and Voluntary Waiver.</b> Executive is
advised to consult with an attorney prior to executing this
Agreement. By signing this Agreement, Executive acknowledges that
he was afforded a period of at least twenty-one (21) days within
which to consider this Agreement, that he has had sufficient
opportunity to consult with the advisors of his choice, and that
he has freely, knowingly, and voluntarily entered into this
Agreement.     </p>
</div>

<p>
IV.<b> Other Terms of the
Agreement.</b>     </p>

<div style="margin-left: 8em">
<p>
A. <b>Indemnification.</b> Genesee shall indemnify
Executive for services rendered to Genesee to the full extent
provided by law. Genesee shall reimburse all costs and
attorney’s fees incurred by Executive in connection with
such indemnification
matters.     </p>

<p>
B. <b>Disparaging Remarks.</b> Executive agrees not to
make disparaging remarks about Genesee, its products, or
employees, provided that he shall not be prevented from speaking
truthfully about Genesee. Genesee agrees to not make disparaging
remarks about Executive, but it reserves the right to speak
truthfully concerning
Executive.     </p>

<p>
C. <b>Entire Agreement.</b> There are no understandings
between the parties regarding this Agreement, or its subject
matter, other than as specifically set forth in this Agreement.
Any prior offers, understandings, and agreements regarding the
subject matter of this Agreement are superseded by this
Agreement. This Agreement shall not be amended except in a
writing signed by Executive and a duly authorized representative
of Genesee.     </p>

<p>
D. <b>Revocation.</b> Executive may revoke this Agreement
during the seven (7) days following the execution of this
Agreement. Unless revoked, this Agreement shall become effective
and enforceable on the eighth day after it is executed by
Executive.     </p>

<p>
<u>/s/ Charles S. Wehle</u> <u> December 15, 1999
 .</u>     </p>

<p>
<b>Charles S. Wehle</b>
(Date)     </p>

<p>
<b>Genesee
Corporation</b>     </p>

<p>
<b>By:</b>     </p>

<p>
<u>/s/ Samuel T. Hubbard, Jr.</u> <u> December 15, 1999
 .</u>     </p>

<p>
<b>Samuel T. Hubbard, Jr.</b>
(Date)     </p>

<p>
<b>President and Chief Operating
Officer</b>     </p>
</div>

<p align="CENTER"> <strong>EMPLOYMENT
AGREEMENT</strong>     </p>

<p align="JUSTIFY"> <strong>This EMPLOYMENT AGREEMENT</strong>
(the "<i>Agreement</i>") effective as of June 18, 1999 (the
"<i>Effective Date</i>"), between <b>GENESEE CORPORATION</b>, a
New York corporation (the "<i>Genesee</i><b>"), THE GENESEE
BREWING COMPANY, INC.</b>, a New York corporation (the
"<i>Brewery</i>" and together with Genesee, the
"<i>Company</i>"), and <b>SAMUEL T. HUBBARD, JR</b>. (the
"<i>Executive</i>").     </p>

<p align="CENTER"> <i><b>PRELIMINARY
STATEMENTS:</b></i>     </p>

<p align="JUSTIFY"> A. The Genesee Board of Directors (the
"<i>Board</i>") and its Management Continuity Committee (the
"<i>MCC</i>") have approved the engagement of the Executive as
Genesee’s President and Chief Operating Officer and as the
Brewery's Chief Executive Officer, subject to the execution and
delivery of this Agreement by the parties
hereto.     </p>

<p align="JUSTIFY"> B. The Executive is willing to serve in
these capacities on the terms and conditions hereinafter set
forth.     </p>

<p align="CENTER"> <i><b>
PROVISIONS:</b></i>     </p>

<p align="JUSTIFY"> <b>NOW, THEREFORE</b>, in consideration
of the premises and mutual covenants set forth herein, the
parties agree as follows:     </p>

<p align="JUSTIFY"> 1. <b><i>Employment</i></b>. The Company
hereby agrees to employ the Executive and the Executive hereby
agrees to serve the Company, on the terms and conditions set
forth in this Agreement.     </p>

<p align="JUSTIFY"> 2. <b><i>Term of Agreement</i></b>.
Subject to the terms and conditions hereof, the term of the
Executive's employment pursuant to this Agreement (the
"<i>Term</i>") shall commence on the Effective Date and shall
continue in effect through June 18, 2001; provided, however, that
on June 18, 2001 and on the 18th day of each June thereafter, the
Term shall be automatically extended for an additional one-year
period unless, at least ninety (90) days or more prior to such
date, the Company or the Executive shall have given written
notice to the other party stating that the Term shall not be so
extended.     </p>

<p align="JUSTIFY"> 3. <b><i>Position and
Duties</i></b>.     </p>

<p align="JUSTIFY"> (a) During the Term, the Executive shall
serve as the President and Chief Operating Officer of Genesee and
shall have powers and authority with respect to Genesee's
business and affairs superior to any other officer or employee of
Genesee other than Genesee's Chief Executive Officer. During the
Term, the Executive shall also serve as the Chief Executive
Officer of the Brewery and shall have powers and authority with
respect to the Brewery's business and affairs superior to any
other officers or employees. The Executive shall also have such
other powers and duties as may from time to time be delegated to
him by the Board, provided that such duties are not inconsistent
with his present duties and with the Executive's position.
Notwithstanding the foregoing, the Executive shall report
directly to the Board. The Executive shall devote substantially
his whole working time, efforts and attention to the business and
affairs of the Company (except for vacation time, absence for
sickness or similar disability and engagement in the activities
permitted under Section 7(a) to the extent permitted thereunder)
and shall carry out his duties honestly, diligently, in good
faith and in the best interests of the
Company.     </p>

<p align="JUSTIFY"> (b) To the extent permitted by law and
the Company's organizational documents, during the Term, the
Board shall either vote, or recommend to the shareholders of the
Company that they vote, as appropriate, at each shareholders'
meeting at which the Executive's position as a director of
Genesee is voted on to continue the Executive as a director. In
addition, the Executive shall be elected to the Board of
Directors of each subsidiary of Genesee and to the position of
Vice Chairman of the Brewery's
Board.     </p>

<p align="JUSTIFY"> 4. <b><i>Place of Performance</i></b>. In
connection with his employment by the Company, the Executive
shall be based at the Company's principal executive offices. The
Company shall not, without the written consent of the Executive,
relocate or transfer its principal executive offices outside
Monroe County, New York.     </p>

<p align="JUSTIFY"> 5. <b><i>Compensation and Related
Matters</i></b>. Subject to the terms and conditions herein,
during the Term, the Executive shall be entitled to the following
compensation and benefits:     </p>

<p align="JUSTIFY"> (a) <i><u>Base Salary</u></i>. From the
Effective Date until June 18, 2001 the Executive shall receive a
base salary at the annual rate no less than the Executive’s
current annual salary (the "<i>Base Salary</i>") which shall be
payable in accordance with the Company's payroll practices.
Following June 18, 2001, the Base Salary may be increased on an
annual basis during the remainder of the Term to such greater
amount as shall be determined by the MCC, in its sole and
absolute discretion. The Base Salary payable hereunder shall be
reduced to the extent that the Employee elects to defer such Base
Salary under the terms of any deferred compensation or savings
plan maintained or established by the Company, provided that any
such reduction of the Base Salary shall not be taken into account
for purposes of calculating the Annual Bonus (defined
below).     </p>

<p align="JUSTIFY"> (b) <i><u>Annual Bonus</u></i>. In
addition to the Base Salary, the Executive shall be eligible to
receive an annual bonus (the "<i>Annual Bonus</i>") for each
fiscal year of Genesee up to a maximum of fifty percent (50%) of
his Base Salary for such fiscal year. The MCC shall have sole and
absolute discretion to determine whether an Annual Bonus will be
awarded for any fiscal year and the amount of the Annual Bonus to
be paid. Any Annual Bonus approved by the MCC shall be due and
payable within sixty (60) days after the end of the
Company’s fiscal year for which such bonus is
awarded.     </p>

<p align="JUSTIFY"> (c) <i><u>Stock Option</u></i>.
Simultaneously with the execution hereof, the Company and
Executive will enter into a stock option agreement (the
"<i>Option Agreement</i>") providing for the grant to Executive
of a non-qualified stock option (the "<i>Option</i>") to purchase
up to the number of shares of Genesee Class B common stock as
approved by the MCC on their 9/2/1999 meeting (the "Option
Shares"). The Option will be issued pursuant to the Company's
1992 Stock Option Plan (the "<i>1992</i> <i>Plan</i>") and will
be subject to the terms thereof and shall have the following
additional terms.     </p>

<p>
(i) The Option shall have an exercise price of $25.31
per share.     </p>

<p align="JUSTIFY"> (ii) The Option shall have a ten (10)
year term, but shall terminate no later than one (1) year after
the date of Executive's death or termination of employment or
service; provided, however, that if Executive's employment is
terminated for Cause, as defined in Section 9(c) hereof, the
Option shall terminate if not exercised within thirty (30) days
following the Date of Termination, as defined in Section
9(g).     </p>

<p align="JUSTIFY"> (iii) The Option shall be fully vested as
of the execution of the Option Agreement by the Company with
respect to the purchase of up to 25% of the Option Shares. The
Option shall vest and be or become exercisable with respect to
the remaining Option Shares as follows so long as the Executive
remains employed hereunder on the applicable vesting
date:     </p>

<div style="margin-left: 20em">
<p align="JUSTIFY"> (A) The Option shall vest and become
exercisable with respect to an additional 25% of the Option
Shares if at any time during the term of the Option, the Closing
Price for the Common Stock for any thirty (30) <strong>
consecutive trading days</strong> (a "<i>Trading Period</i>" )
shall be not less than <strong>$</strong>30 for each trading day
during the Trading Period;     </p>

<p align="JUSTIFY"> (B) The Option shall vest and become
exercisable with respect to an additional 25% of the shares if at
any time during the term of the Option, the Closing Price for the
Common Stock for any Trading Period is not less than <strong>
$</strong>35 for each trading day during the Trading
Period;     </p>

<p align="JUSTIFY"> (C) The Option shall vest and become
exercisable with respect to an additional 25% of the shares if at
any time during the term of the Option, the Closing Price for the
Common Stock for any Trading Period is not less than <strong>
$40</strong> for each trading day during the Trading Period;
and     </p>

<p align="JUSTIFY"> (D) all other vesting shall be in
accordance with Sections 9(c), (d) and
(e).     </p>
</div>

<p align="JUSTIFY">  In the event of any stock split, reverse
stock split or similar recapitalization, the Closing Prices set
forth in Sections 5(c)(iii)(A), (B) and (C) shall be equitably
adjusted by the MCC so that the Executive's vesting rights under
these subsections is no worse than it was immediately prior to
such transaction. The MCC shall give the Executive written notice
of any such adjustment.     </p>

<p align="JUSTIFY">  Notwithstanding the foregoing, vesting
with respect to any Closing Price shall occur only once for any
Closing Price (<i>i.e.</i>, $30, $35 and $40). (For example,
after the Option has vested with respect to 5(c)(iii)(A) the
Option shall not vest with respect to any additional Option
Shares if during any subsequent Trading Period the Closing Price
exceeds $30 for each trading day during the Trading Period unless
Section 5(c)(iii)(B) or (C) applies). Similarly, once Option
Shares are vested pursuant to Section 5(iii)(A), (B) or (C), they
shall not become unvested solely as a result of a subsequent
decline in the Closing Price. Except as otherwise provide in
Section 9, any portion of the Option which is unvested as of the
Date of Termination or the expiration of the Term will be
forfeited immediately upon such termination or
expiration.     </p>

<p align="JUSTIFY">  (iv) The Option shall have such other
terms and conditions as the MCC deems appropriate and which are
consistent with the 1992 Plan. The Option Agreement shall be in a
form approved by the MCC.     </p>

<p align="JUSTIFY">  (d) <i><u>Expenses</u></i>. Upon the
submission of supporting documentation by the Executive, the
Company shall reimburse the Executive for all reasonable expenses
actually paid or incurred by the Executive in the course of, and
pursuant to the business of, the Company, including expenses for
travel and entertainment.     </p>

<p align="JUSTIFY">  (e) <i><u>Other Benefits</u></i>. The
Executive shall be entitled to participate in all non-stock or
non-equity based employee benefit plans or arrangements made
available to all of the Company’s senior management or key
employees from time to time, subject to and on a basis consistent
with the terms, conditions and overall administration of such
plan or arrangement. Such plans and arrangements shall include,
without limitation, all pension and retirement plans,
supplemental pension and retirement plans, savings and profit
sharing plans, life insurance policies, officers' and directors'
liability insurance policies, life insurance plans, medical and
health insurance plans, disability plans, dental plans,
health-and-accident plans or similar plans or arrangements.
Nothing paid to the Executive under any plan or arrangement
presently in effect or made available in the future shall be
deemed to be in lieu of the Base Salary or any other obligation
payable to the Executive pursuant to this Agreement. The
Executive expressly acknowledges that except for the Option
described in Section 5(c), he shall not be entitled to, and he
shall not participate in Genesee's 1986 Incentive Bonus Plan, as
amended, Genesee's Stock Bonus Program or the 1992 Plan or any
other stock or equity based program adopted by Genesee or the
Brewery as of and after the Effective
Date.     </p>

<p align="JUSTIFY">  (f) <i><u>Vacation</u></i>. The Executive
shall be entitled to not less than four (4) weeks vacation in any
calendar year (prorated in any calendar year during which the
Executive is employed under this Agreement for less than the
entire year in accordance with the number of days in such
calendar year during which he is so employed). The Executive
shall also be entitled to all paid holidays given by the Company
to its senior executive
officers.     </p>

<p align="JUSTIFY"> (g) <i><u>Automobile Expense</u></i>. In
recognition of the necessity of the use of an automobile to the
efficient and expeditious performance of the Executive's
services, duties and obligations to and on behalf of the Company,
the Company shall pay to the Executive an automobile allowance of
$700 per month, payable in advance of each
month.     </p>

<p align="JUSTIFY"> (h) <i><u>Profit Sharing Plan
Restoration</u></i>. During the first twenty-four (24) months of
the Term, the Company shall pay to Executive an amount which
shall equal the amount that would have been credited to him under
the Company's profit sharing plan had he qualified for such plan
together with an amount which shall equal the combined Federal
and state taxes associated with such payment using the highest
combined federal and state tax rates. Such payments shall be made
at or about the time that contributions are made to the Company's
profit sharing plan.     </p>

<p align="JUSTIFY"> (i) <i><u>Club Memberships</u></i>.
During the Term, the Company shall pay all of the Executive's
fees, dues and membership assessments of those clubs which
Executive belongs to on the date hereo. The Company shall also
reimburse the Executive for all reasonable expenses incurred at
such club(s) on behalf of the
Company.     </p>

<p align="JUSTIFY"> (k) <i><u>Legal Fees</u></i>. Promptly
following the execution of this Agreement, the Company shall
reimburse the Executive for the reasonable legal fees he incurred
in connection with the review, negotiation and execution of this
Agreement.     </p>

<p>
7. <b><i>Restrictive
Covenants.</i></b>     </p>

<p align="JUSTIFY"> (a) <i><u>Certain Activities During
Employment</u></i>. Except with the prior written consent of the
MCC, the Executive will not during the Term undertake or engage
in any other employment, occupation or business enterprise other
than one in which he is an inactive investor as described below.
This provision shall not be deemed to preclude (i) the Executive
from serving on the board of directors of a reasonable number of
other corporations, or (ii) membership in professional societies
or trade associations or lecturing or the acceptance of honorary
positions, in all cases, that are incidental to his employment by
the Company and which are not adverse or antagonistic to the
Company, its business or prospects, financial or otherwise. The
Executive will also not acquire, assume or participate in,
directly or indirectly, any position, investment or interest
adverse or antagonistic to the Company, its business or
prospects, financial or otherwise, or take any action towards any
of the foregoing. Further, during the Term, except on behalf of
the Company or its subsidiaries, the Executive will not, directly
or indirectly, whether as an officer, director, employee,
stockholder, partner, proprietor, associate, representative or
otherwise, become or be interested in any other person,
corporation, firm, partnership or other entity whatsoever which
directly competes with the Company or any of its direct or
indirect subsidiaries, in any part of the world, in any line of
business engaged in by any such entities (or in which any such
entities have made plans to be engaged in); provided, however,
that anything above to the contrary notwithstanding, Executive
may own, as an inactive investor, securities of any competitor
corporation, so long as his holdings in any one such corporation
shall not in the aggregate constitute more than one percent (l%)
of the voting stock of such
corporation.     </p>

<p align="JUSTIFY"> (b) <i><u>Unauthorized
Disclosure</u></i>. During the Term and for a two (2) year period
thereafter, the Executive shall not, without the written consent
of the Board or a person authorized thereby, disclose to any
person, other than an employee of the Company (or its
subsidiaries) or a person to whom disclosure is reasonably
necessary or appropriate in connection with the performance by
the Executive of his duties as an executive of the Company, any
confidential information obtained by him while in the employ of
the Company with respect to any of the Company's customers,
suppliers, creditors, lenders or investment bankers or methods of
brewing, distribution or marketing; provided, however, that
confidential information shall not include any information known
generally to the public (other than as a result of unauthorized
disclosure by the Executive) or any information of a type not
otherwise considered confidential by persons engaged in the same
business or a business similar to that conducted by the
Company.     </p>

<p align="JUSTIFY"> (c) <i><u>Non-Solicitation of
Employees</u></i>. While employed by the Company and for a period
of two (2) years thereafter, the Executive shall not, directly or
indirectly, for himself or for any other person, firm,
corporation, partnership, association or other entity, attempt to
employ or enter into any contractual arrangement with any
employee or former employee of the Company or any of its direct
or indirect subsidiaries, unless such employee or former employee
has not been employed by any such entity for a period in excess
of six (6) months.     </p>

<p align="JUSTIFY"> (d) <i><u>Books And Records</u></i>. All
books, records, accounts and similar repositories of confidential
information of the Company, whether prepared by the Executive or
otherwise coming into the Executive's possession, shall be the
exclusive property of the Company and shall be returned
immediately to the Company on termination of this Agreement or on
the Company's request at any
time.     </p>

<p align="JUSTIFY"> (e) <i><u>Injunction</u></i>. It is
recognized and hereby acknowledged by the Company and the
Executive that a breach by the Executive of any of the agreements
contained in this Section 7 may cause irreparable harm or damage
to the Company, or its subsidiaries, the monetary amount of which
may be virtually impossible to ascertain. As a result, the
Executive and the Company agree that the Company and any of its
subsidiaries shall be entitled to an injunction issued by any
court of competent jurisdiction enjoining and restraining any and
all violations of such agreements by the Executive or his
associates, affiliates, partners or agents, and that such right
to an injunction shall be cumulative and in addition to whatever
other remedies the Company may
possess.     </p>

<p align="JUSTIFY"> 8. <b><i>
Termination</i></b>.     </p>

<p align="JUSTIFY"> (a) <i><u>Termination Events</u></i>. The
Executive's employment under this Agreement shall be terminable
as follows:     </p>

<p align="JUSTIFY"> (i) <i>Death</i>. By the Company upon the
Executive's death.     </p>

<p align="JUSTIFY"> (ii) <i>Disability</i>. By the Company,
if, as a result of the Executive's incapacity due to physical or
mental illness ("<i>Permanent Disability</i>"), the Executive
shall be unable to substantially perform his duties under this
Agreement for three (3) consecutive months as determined by a
medical doctor retained by Genesee, and within thirty (30) days
after written Notice of Termination (defined below) is given
(which notice may only be given after the end of such three (3)
month period), the Executive shall not have returned to the
performance of his duties under this
Agreement.     </p>

<p align="JUSTIFY"> (iii) <i>For Cause</i>. By the Company,
for Cause. For purposes of this Agreement, "<i>Cause</i>" shall
mean (A) repeated and persistent neglect or refusal by the
Executive to substantially perform his duties under this
Agreement (other than any such failure resulting from the
Executive's incapacity due to Permanent Disability), after a
demand for substantial performance is delivered to the Executive
by the Board stating the manner in which the Company believes the
Executive has not substantially performed his duties, and the
Executive shall have failed to resume substantial performance of
such duties within thirty (30) days of receiving such demand, (B)
the engaging by the Executive in criminal conduct (including
embezzlement and criminal fraud), (C) the commission by the
Executive of a felony, or a misdemeanor which impairs the
Executive's ability substantially to perform his duties with the
Company, (D) any material misappropriation of funds or
intentional material damage to the property or businesses of the
Company by the Executive or (E) the material breach of this
Agreement by the Executive other as set forth in Section
8(a)(iii)(A)).     </p>

<p align="JUSTIFY"> (iv) <i>Without Cause.</i> By the Company
without Cause upon at least thirty (30) days written notice to
the Executive of its election to do
so.     </p>

<p align="JUSTIFY"> (v) <i>Voluntary Termination</i>. By the
Executive other than due to the Employee’s death or
Permanent Disability ("<i>Voluntary Termination</i>") upon at
least forty-five (45) days written notice to the Company of his
election to do so.     </p>

<p align="JUSTIFY"> (vi) <i>Sale of the Company</i>. By the
Company upon the Sale of the
Company.     </p>

<p align="JUSTIFY"> (b) <i><u>Notice of Termination</u></i>.
Any termination of the Executive's employment by the Company or
by the Executive shall be communicated by written Notice of
Termination to the other party hereto given in accordance with
Section 11. For purposes of this Agreement, a "<i>Notice of
Termination</i>" shall mean a written notice which shall indicate
the provision in this Agreement relied upon to terminate the
Term.     </p>

<p align="JUSTIFY"> (c) <i><u>Date of Termination</u></i>.
"<i>Date of Termination</i>" shall mean (i) if the Executive's
employment is terminated by his death, the date of his death,
(ii) if the Executive's employment is terminated for Permanent
Disability, thirty (30) days after Notice of Termination is given
(provided that the Executive shall not have returned to the
performance of his duties during such thirty (30) day period),
(iii) if the Executive's employment is terminated by the Company
for Cause, without Cause or upon Sale of the Company, the date
specified in the Notice of Termination after the expiration of
any cure periods, if applicable, (iv) if the Executive's
employment is terminated as a result of his Voluntary
Termination, the date set forth in the Executive's Notice of
Termination (but not beyond forty-five (45) days after delivery
of the Executive's Notice of Termination), and (v) if the
Executive's employment is terminated for any other reason, the
date on which a Notice of Termination is given after the
expiration of any cure
periods.     </p>

<p align="JUSTIFY"> 9. <b><i>Compensation Upon Termination Or
During Disability.</i></b>     </p>

<p align="JUSTIFY"> (a) <i><u>Death</u></i>. If the
Executive's employment shall be terminated by reason of his
death, the Company shall pay to such person as the Executive
shall have designated in a notice filed with the Company, or, if
no such person shall have been designated, to his estate, (i) any
unpaid amounts of his Base Salary or Annual Bonus and accrued
vacation prior to the Date of Termination and (ii) any payments
the Executive's spouse, beneficiaries or estate may be entitled
to receive pursuant to any pension or employee benefit plan, life
insurance policy or other plan, program or policy then maintained
or provided by the Company, or any other agreement between the
Executive and the Company (excluding the Option and the 1992
Plan) (collectively, the "<i>Termination
Benefits</i>").     </p>

<p align="JUSTIFY"> (b) <i><u>Disability</u></i>. During any
period that the Executive fails to perform his duties hereunder
as a result of incapacity due to physical or mental illness, the
Executive shall continue to receive his full Base Salary until
the Executive's employment is terminated pursuant to Section
8(a)(ii) hereof. The Executive shall continue to be paid in
bi-monthly installments an amount equal to his Base Salary at the
rate in effect at the time Notice of Termination is given until
the earlier of twenty-seven (27) weeks after the Date of
Termination or the date on which the Term would have expired had
a Notice of Termination been delivered (assuming that no notice
would be given to extend the Term), plus any disability payments
otherwise payable by or pursuant to plans provided by the
Company. In addition, the Company shall pay to the Executive the
Termination Benefits.     </p>

<p align="JUSTIFY"> (c) <i><u>For Cause</u></i>. If the
Executive's employment shall be terminated by the Company for
Cause, the Company shall pay the Executive the Termination
Benefits.     </p>

<p align="JUSTIFY"> (d) <i><u>Termination by the Company
Without Cause, Etc</u></i>. If the Company terminates the
Executive's employment for any reason other than (i) due to
death, (ii) for Cause (iii) Permanent Disability or (iv) upon a
Sale of the Company, then all unvested Options shall immediately
vest and the Company shall pay the Executive the Termination
Benefits and a lump sum payment equal to one hundred fifty
percent (150%) of the annual Base Salary amount in effect on the
date that the Notice of Termination was given by the Company,
provided that as a condition to such payment the Executive first
executes a general release of the Company and all of its
officers, directors and representatives of any and all claims and
which is otherwise in form satisfactory to the Company (a
"<i>General Release</i>").     </p>

<p align="JUSTIFY"> (e) <i><u>Termination by the Company Upon
Sale of the Company</u></i>. If the Company terminates the
Executive's employment upon or after a Sale of the Company, then
all unvested Options shall immediately vest upon the
effectiveness of such termination and the Company shall pay the
Executive the Termination Benefits and a lump sum payment equal
to one-hundred fifty percent (150%) of the annual Base Salary
amount in effect on the date that the Sale of the Company has
been completed, except that no such lump sum payment shall be due
if the Closing Price of the Company's common stock as of any date
after the first public announcement of the Sale of the Company
equals or exceeds $55, provided that as a condition to such
payment the Executive first executes a General
Release.     </p>

<p align="JUSTIFY"> (f<i>) <u>Voluntary Termination by the
Executive</u></i>. If the Executive's employment with the Company
is terminated by his Voluntary Termination prior to the one
hundred eighty (180<sup>th</sup>) day following the Effective
Date, then the Company shall pay the Executive the Termination
Benefits. If the Executive's employment with the Company is
terminated as a result of Voluntary Termination by the Executive
after the one hundred eightieth (180<sup>th</sup>) day following
the Effective Date but before the three hundred sixty-fifth
(365<sup>th</sup>) day following the Effective Date, then the
Company shall pay the Executive the Termination Benefits plus a
lump sum payment in the amount of $150,000, provided that as a
condition to such payment the Executive first executes a General
Release.     </p>

<p align="JUSTIFY"> (g) <i><u>Payment of Termination Benefits
and Other Amounts</u></i>. Except as otherwise provided herein,
all Termination Benefits and lump sum payments shall be due and
payable within forty-five (45) days after the Date of Termination
or if a General Release is required, within forty-five (45) days
after delivery of the General Release to the Company. Upon making
such payments, the Company shall have no further liability
hereunder.     </p>

<p align="JUSTIFY"> 10. <b><i>Successors</i>.</b> This
Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the
Executive other than by will or the laws of descent and
distribution. This Agreement and all rights of the Executive
hereunder shall inure to the benefit of and be enforceable by the
Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devises and
legatees. If the Executive should die while any amounts would
still be payable to him hereunder, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to the Executive's personal or legal
representatives or, if there be no such persons, the Executive's
estate. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns. The
Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company,
by agreement in form and substance satisfactory to the Executive,
to assume expressly and agree to perform this Agreement in the
same manner and to the same extent that the Company would be
required to perform it if no such succession had taken
place.     </p>

<p align="JUSTIFY"> 11. <b><i>Notice</i></b>. All notices and
other communications hereunder shall be in writing and shall be
given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid,
addressed as follows:     </p>

<p align="JUSTIFY"> If to the
Executive:     </p>

<p align="JUSTIFY"> Samuel T.
Hubbard     </p>

<p align="JUSTIFY"> 296 Sandringham
Road     </p>

<p align="JUSTIFY"> Rochester, New York
14610     </p>

<p>
If to the
Company:     </p>

<p>
The Genesee
Corporation     </p>

<div style="margin-left: 4em">
<p>
445 St. Paul
Street     </p>

<p>
Rochester, New York
14605     </p>

<p>
with a copy to:     </p>

<p>
Management Continuity
Committee     </p>

<p>
16 W. Main Street     </p>

<p>
Rochester, New York 14614 Attn: Stephen B. Ashley,
Chairman     </p>
</div>

<p align="JUSTIFY"> or to such other address as either party
shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when
actually received by the
addressee.     </p>

<p align="JUSTIFY"> 12. <b><i>Certain Definitions</i>.</b> As
used herein, the following definitions shall
apply:     </p>

<p align="JUSTIFY"> "<i>Closing Price</i>" shall mean with
respect to the Company’s Class B common stock on any
trading day (A) if such stock is listed or admitted for trading
on any United States national securities exchange, or if actual
transactions are otherwise reported on a consolidated transaction
reporting system, the last reported sale price of such stock on
such exchange or reporting system, as reported in any newspaper
of general circulation, (B) if such stock is quoted on the
National Association of Securities Dealers Automated Quotation
System or any similar system of automated dissemination of
quotations of securities prices in common use, the mean between
the closing high bid and low asked quotations for such day as
reported on such system, (C) if neither clause (A) or (B) is
applicable, the mean between the high bid and low asked
quotations for the common stock as reported by the National
Quotation Bureau, Incorporated or (D) if none of clauses (A), (B)
or (C) apply, the price determined by the Genesee Board in good
faith to be the fair market value of such
stock.     </p>

<p align="JUSTIFY">  "<i>Sale of the Company</i>" shall mean
that any of the following circumstances have
occurred:     </p>

<p align="JUSTIFY"> (A) Any "person" (as such term is used in
Sections 3(a)(9) and 13(d) of the Securities Exchange Act of
1934, as amended (the "<i>Exchange Act</i>")) (a "<i>Significant
Stockholder</i>") is or becomes the "beneficial owner" (as
defined in Rule 13(d)-3 under the Exchange Act), directly or
indirectly, of twenty percent (20%) or more of the combined
voting power of Genesee's then outstanding securities entitled to
vote in the election of directors (provided, however, that none
of the direct descendants of John L. Wehle, the trusts
established by Elizabeth R. Wehle and under the Wills of Lewis A.
Wehle and John L. Wehle and any trustee thereunder (collectively,
the "<i>Wehles</i>") shall be a "person" for purposes of this
Agreement and no person who would be a Significant Stockholder as
a result of acquiring shares held by or over which any of the
Wehles have investment or voting control (the "<i>Wehle
Shares</i>") shall be considered a Significant Stockholder for
purposes of this
Agreement;     </p>

<p align="JUSTIFY"> (B) Stockholders of Genesee approve and
there is closed a (1) merger or consolidation of Genesee with any
other corporation other than a merger or consolidation (1) which
would result in Genesee securities entitled to vote in the
election of directors outstanding immediately prior to the
transaction continuing to represent more than eighty percent
(80%) of the combined outstanding voting power of the then
outstanding securities entitled to vote in the election of
directors of Genesee, or the surviving entity of such
transaction; or (2) a merger or consolidation effected to
implement a recapitalization of Genesee (or a similar
transaction) in which no "person" (as defined above) becomes a
Significant Stockholder;
or     </p>

<p align="JUSTIFY"> (C) A sale or disposition by Genesee and
its subsidiaries of more than eighty-five percent (85%) of the
fair market value of their assets to one or more parties in a
coordinated sale, disposition or pursuant to a plan of
dissolution and liquidation adopted by the Board of Directors and
approved by the Company's shareholders, provided that the sale of
the Brewery assets alone shall not under any circumstances be a
"Sale of the Company."     </p>

<p>
  13. <b><i>
Miscellaneous</i></b>.     </p>

<p align="JUSTIFY"> (a) No provisions of this Agreement may
be modified, waived or discharged unless such modification,
waiver or discharge is agreed to in a writing signed by the
Executive and such officer as may be specifically designated by
the Board to execute such instrument (which may be done by way of
ratification through a formal committee
vote).     </p>

<p align="JUSTIFY"> (b) The failure by either party hereto to
insist upon compliance with any condition or provision of this
Agreement shall not be deemed a waiver of such condition or
provision or any other provision
hereof.     </p>

<p align="JUSTIFY"> (c) No agreements or representations,
oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are
not set forth expressly in this Agreement and this Agreement
supersedes any other <strong>employment agreement</strong>
between the Company and the Executive, including, without
limitation, the document entitled "Outline of Employment
Agreement for Samuel T. Hubbard, Jr., June 14,
1999."     </p>

<p align="JUSTIFY"> (d) The Company may withhold from any
amounts or payments due under this Agreement all federal, state
or other taxes as legally shall be
required.     </p>

<p align="JUSTIFY"> (e) The validity, interpretation,
construction and performance of this Agreement shall be governed
by the laws of the State of New York, without reference to
principles of conflicts of
laws.     </p>

<p align="JUSTIFY"> (f) The invalidity or unenforceability of
any provision or provisions of this Agreement shall not affect
the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and
effect.     </p>

<p align="JUSTIFY"> (g) Genesee may, in its discretion,
establish a trust to fund any of the payments which are or may
become payable to the Executive under this
Agreement.     </p>

<p align="JUSTIFY"> (h) Executive represents and warrants
that his employment by the Company will not conflict with and
will not be constrained by any prior employment or consulting
agreement or relationship.     </p>

<p align="JUSTIFY"> (i) This Agreement may be executed in
several counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute one and the
same instrument.     </p>

<p align="JUSTIFY"> (j) The Company agrees that in the event
that the Executive becomes entitled to compensation under this
Agreement, the Executive shall have no obligation to mitigate
damages and the Company shall not assert any right of setoff as a
result of subsequent employment against sums owing to the
Executive under this
Agreement.     </p>

<p align="JUSTIFY"> <b>IN WITNESS WHEREOF</b>, the parties
have executed this <strong>Employment Agreement</strong> as of
this 15<sup>th</sup> day of December,
1999.     </p>

<p>
<b>GENESEE CORPORATION THE GENESEE BREWING COMPANY,
INC.</b>     </p>

<p>
By: <u>_/s/ Stephen B. Ashley</u> By: <u>/s/ Charles S.
Wehle .</u>     </p>

<p>
Name: Name:     </p>

<p>
Title: Title:     </p>

<p>
  <u>/s/ Samuel T. Hubbard, Jr.
 .</u>     </p>

<p>
 Samuel T. Hubbard,
Jr.     </p>
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