Gencor Industries (GENC) SC TO-I/A Issuer tender offer statement (amended)

EXHIBIT (c)(2)

Gencor Industries, Inc. CONFIDENTIAL

10.07.03

PRESENTATION TO THE BOARD OF DIRECTORS

This presentation and its analyses are only for the use of the Board of Directors and are not intended to, nor should they be, relied upon by any other party, including stockholders of Gencor Industries, Inc. The consent of Capitalink is required prior to the disclosure to any third party of this presentation, its analyses, or of the assessments made by Capitalink. These materials are based solely on information contained in publicly available documents and certain other information provided to Capitalink by management and the Board of Directors. Capitalink has not attempted to investigate or verify the accuracy or completeness of such publicly available information or other information provided to Capitalink. Capitalink has relied upon the accuracy and completeness of such publicly available information and other information supplied to Capitalink. These materials are being furnished, and should be considered only in connection with, the oral presentation being provided by Capitalink in connection herewith. The preparation of these materials was completed on October 3, 2003 based on information publicly available or supplied to Capitalink through such date. Capitalink is not obligated to update this presentation or its analyses to reflect any information that becomes publicly available or that is provided to Capitalink after such date.

Gencor Industries, Inc. CONFIDENTIAL

TABLE OF CONTENTS

TRANSACTION OVERVIEW	3
COMPANY OVERVIEW	12
COMPANY FINANCIAL PERFORMANCE	16
COMPANY MARKET PERFORMANCE	29
VALUATION ANALYSIS	41

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
INTRODUCTION

• The Board of Directors of Gencor Industries, Inc. (“Gencor” or the “Company”) has retained Capitalink, L.C. (“Capitalink”) as financial advisor and to render an opinion as to the fairness, from a financial point of view, of an offer by the Company to purchase all of the Company’s outstanding shares of common stock that are not beneficially owned by the Continuing Stockholders (as defined herein) for per share consideration of $2.00 in cash and a $1.00 principal amount junior subordinated promissory note (the “Offer”).

• The “Continuing Stockholders” are E.J. Elliott (Chairman of the Board of Directors and President of the Company), John E. Elliott (EVP and Director of the Company), Marc Elliott (President of the Company’s Construction Equipment Group), the Elliott Foundation and their affiliates.

• The Continuing Stockholders, which as a group own approximately 35.7% of the outstanding shares of the Company’s common stock currently issued and outstanding (assuming the Company’s Class B stock was converted), do not intend to tender any of their shares pursuant to the Offer.

• Assuming a majority of the stock not held by the Continuing Stockholders are tendered pursuant to the Offer the Company intends to terminate the registration of the Company’s common stock under the Securities Exchange Act of 1934, as amended (the “Act”). If less than a majority of the shares not held by the Continuing Stockholders are tendered pursuant to the Offer and the remaining record number of stockholders, including the Continuing Stockholders, would be greater than 300, the Company will accept those common shares tendered pursuant to the Offer, but will not terminate the registration of the Company’s common stock under the Act. In the event that less than a majority of the shares not held by the Continuing Stockholders are tendered pursuant to the Offer and the remaining record number of stockholders, including the Continuing Stockholders, would be less than 300, the Company will not accept any common stock tendered pursuant to the Offer.

• The Company’s common stock is publicly traded on the pink sheets under the symbol “GNCI.PK”, and as of October 3, 2003, there were 6,884,070 shares of the Company’s common stock outstanding (excluding treasury shares). As of this date, the Company also had 1,798,398 Class B shares. As a class, holders of Class B stock hold 75% of the voting power to elect the Company’s Board of Directors and with respect to

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
INTRODUCTION

	any other decision requiring stockholder approval. Common stock and Class B have equal rights with respect to dividends, preferences, and rights, including rights in liquidation.
•	The closing price of the Company’s common stock on October 3, 2003 (date presentation materials completed) was $2.45.

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
SUMMARY OF PROPOSED TRANSACTION TERMS

Proposed Consideration:	For each share, $2.00 in cash and a $1.00 principal amount junior subordinated promissory note (the “Note”).
Terms of the Consideration:	Cash paid and Note issued at closing. The Note bears interest at 10% per year, payable semi-annually. Principal is paid in full on December 31, 2006. It is not intended that the Notes will be registered with the Securities and Exchange Commission (the “SEC”) nor be listed for trading on an exchange or qualify the Notes for trading on an automated quotation system operated by a national securities association. Therefore, a trading market is not expected to develop for the Notes.
Offer Structure:	The Company is offering to buy back its outstanding shares of common stock in a self-tender offer and exchange offer. The Continuing Stockholders do not intend to tender any of their shares pursuant to the Offer.
Offer Conditions:	Assuming a majority of the shares not held by the Continuing Stockholders are tendered pursuant to the Offer the Company intends to engage in a second step transaction and purchase the remaining outstanding shares held by stockholders other than the Continuing Stockholders and to terminate the registration of the Company’s common stock under the Act. If less than a majority of the shares not held by the Continuing Stockholders are tendered pursuant to the Offer and the remaining number of stockholders, including the Continuing Stockholders, would be greater than 300, the Company will accept those common stock tendered pursuant to the Offer, but will not terminate the registration of the Company’s common stock under the Act. In the event that less than a majority of the shares not held by the Continuing Stockholders are tendered pursuant to the Offer and the remaining number of stockholders, including the Continuing Stockholders, would

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
SUMMARY OF PROPOSED TRANSACTION TERMS

	be less than 300, the Company will not accept any common shares tendered pursuant to the Offer.
SEC Registration:	In the event certain previously noted conditions are met, the Company will terminate the registration of its common stock under the Act, and will no longer be required to file periodic reports with the SEC. As a result, no current information about the Company will be publicly available.
Tax Implications:	For those stockholders who tender pursuant to the Offer, the receipt of cash and Notes in exchange for shares of the Company’s common stock will be a taxable transaction for United States federal income tax purposes under the Internal Revenue Code of 1986, as amended. In addition it may be a taxable transaction under applicable state, local, foreign and other tax laws.
Expiration Date:	The Offer expires 20 business days after commencement of the Offer.
Appraisal Rights:	Appraisal rights are not available in the Offer.

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
STOCKHOLDER REVIEW

Common Stock Ownership
(Share amounts are in thousands)

						as of October 1, 2003																		Total Ownership %
												Common Stock Ownership %						Class B Ownership %						Assuming Class B Conv.
						Common		Class B		Total
				Avg		Stock		Stock		Assuming					Fully						Fully						Fully
				Ex. Price		Equiv.		Equiv.		Class B Conv.		Primary			Diluted			Primary			Diluted			Primary			Diluted
Common Shares Outstanding
	Continuing Shareholders
		E.J. Elliot					702		1,348		2,050		10.2	%		9.0	%		75.0	%		55.4	%		23.6	%		20.1	%
		Elliot Foundation					49		-		49		0.7	%		0.6	%		0.0	%		0.0	%		0.6	%		0.5	%
		John E. Elliot					458		132		590		6.7	%		5.9	%		7.3	%		5.4	%		6.8	%		5.8	%
		Marc G. Elliot					120		102		222		1.7	%		1.5	%		5.6	%		4.2	%		2.6	%		2.2	%
		Other Affiliates					189		-		189		2.7	%		2.4	%		0.0	%		0.0	%		2.2	%		1.9	%
		Total Continuing Shareholders					1,518		1,581		3,099		22.1	%		19.5	%		87.9	%		65.0	%		35.7	%		30.4	%
	Non-Continuing Shareholders
		Scott Runkel					-		-		-		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
		Jeanne Lyons					2		-		2		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
		David F. Brashears					41		-		41		0.6	%		0.5	%		0.0	%		0.0	%		0.5	%		0.4	%
		All Others					5,323		217		5,540		77.3	%		68.5	%		12.1	%		8.9	%		63.8	%		54.3	%
		Total Non-Continuing Shareholders					5,366		217		5,583		77.9	%		69.0	%		12.1	%		8.9	%		64.3	%		54.7	%
			Total Primary				6,884		1,798		8,682		100.0	%		88.6	%		100.0	%		73.9	%		100.0	%		85.1	%
Other Securities Issuable
	Continuing Shareholders
		E.J. Elliot		$	2.08		590		-		590					7.6	%					0.0	%					5.8	%
		John E. Elliot		$	2.08		-		318		318					0.0	%					13.1	%					3.1	%
		Marc G. Elliot		$	2.08		-		318		318					0.0	%					13.1	%					3.1	%
		Other Affiliates		na			-		-		-					0.0	%					0.0	%					0.0	%
		Total Continuing Shareholders					590		636		1,226					7.6	%					26.1	%					12.0	%
	Non-Continuing Shareholders
		Scott Runkel		$	0.87		100		-		100					1.3	%					0.0	%					1.0	%
		Jeanne Lyons		$	1.65		10		-		10					0.1	%					0.0	%					0.1	%
		David F. Brashears		$	1.75		140		-		140					1.8	%					0.0	%					1.4	%
		All Others		$	1.65		50		-		50					0.6	%					0.0	%					0.5	%
		Total Non-Continuing Shareholders					300		-		300					3.9	%					0.0	%					2.9	%
							1,480		1,272		2,752					19.0	%					52.3	%					27.0	%
			Fully Diluted				7,774		2,434		10,208					100.0	%					100.0	%					100.0	%

Sources of information: Company SEC filings and Company management.

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
SCOPE OF ENGAGEMENT

• In arriving at its opinion, Capitalink took into account its assessment of general economic, market and financial conditions as well as its experience in connection with similar transactions and securities valuations generally and, among other things:

o Reviewed documents relating to the Offer.

o Reviewed publicly available financial information and other data with respect to the Company, including the Annual Report on Form 10-K for the fiscal year ended September 30, 2002, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2003, and the preliminary July 31, 2003 monthly internal financial statements.

o Reviewed and analyzed the estimated present value of the Notes.

o Reviewed and analyzed the Company’s projected unlevered free cash flows and prepared discounted cash flows.

o Reviewed and analyzed certain financial characteristics of companies that were deemed to have characteristics comparable to those of the Company.

o Reviewed and analyzed certain financial characteristics of comparable transactions that involved the acquisition of companies that were deemed to have characteristics comparable to those of the Company.

o Reviewed and analyzed the premiums paid in transactions involving the acquisition of a majority ownership interest in publicly traded companies.

o Reviewed and analyzed the premiums implied by the per share consideration in the Offer.

o Reviewed and analyzed a range of possible scenarios and cash flow implications regarding the Company’s synthetic fuel investments.

o Reviewed and discussed with representatives of the management of the Company certain financial and operating information furnished by them, including financial analyses and projections and related assumptions with respect to the business, operations and prospects of the Company.

o Considered the historical financial results and present financial condition of the Company.

o Reviewed certain publicly available information concerning the trading of, and the trading market for, the common stock of the Company.

o Inquired about and discussed the Offer and other matters related thereto with Company management, the Board of Directors and its legal counsel.

o Performed such other analyses and examinations as were deemed appropriate.

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
SCOPE OF ENGAGEMENT

• The Capitalink opinion is necessarily based upon market, economic and other conditions, as they exist on, and could be evaluated as of October 7, 2003. Accordingly, although subsequent developments may affect its opinion, Capitalink does not assume any obligation to update, review or reaffirm its opinion.

• Capitalink assumes that the Offer will be consummated substantially in accordance with the terms set forth, without any further amendments thereto, and without waiver by the Company of any of the conditions to any obligations or in the alternative that any such amendments, revisions or waivers thereto will not be detrimental to the Company or the Non-Continuing stockholders of the Company.

• Capitalink has relied upon and assumed the accuracy and completeness of all of the financial and other information that was used by it without assuming any responsibility for any independent verification of any such information and has further relied upon the assurances of Company management that it is not aware of any facts or circumstances that would make any such information inaccurate or misleading. With respect to the financial projections utilized, Capitalink assumed that such projections have been reasonably prepared on a basis reflecting the best currently available estimates and judgments, and that such projections provide a reasonable basis upon which it could form an opinion.

• Capitalink has not made a physical inspection of the properties and facilities of the Company and has not made or obtained any evaluations or appraisals of the assets and liabilities (contingent or otherwise) of the Company.

• Capitalink assumed that the Offer will be consummated in a manner that complies in all respects with the applicable provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all other applicable federal and state statues, rules and regulations. In addition, based upon discussions with the Company, it is assumed that the Offer will be a taxable event to the Company’s stockholders.

• Capitalink has not been requested to opine as to, and the opinion does not in any manner address, the underlying business decision of the Company to proceed with or affect the Offer.

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Gencor Industries, Inc. CONFIDENTIAL

TRANSACTION OVERVIEW
SCOPE OF ENGAGEMENT

• Capitalink was not asked to consider, and its opinion does not address, the relative merits of the Offer as compared to any alternative business strategy that might exist for the Company. Capitalink was not engaged to seek alternatives to the Offer that might exist for the Company.

• The opinion is for the use and benefit of the Board of Directors in connection with its consideration of Offer and is not intended to be and does not constitute a recommendation to any stockholder of the Company as to whether such stockholder should tender their respective shares of common stock. We do not express any opinion as to the underlying valuation or future performance of the Company or the price at which the Company’s common stock would trade at any time in the future.

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Gencor Industries, Inc. CONFIDENTIAL

COMPANY OVERVIEW

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Gencor Industries, Inc. CONFIDENTIAL

OVERVIEW OF COMPANY
SUMMARY

• Gencor is a manufacturer of heavy machinery used in the production of asphalt and highway construction materials, synthetic fuels and environmental control equipment.

• Gencor’s origins began in 1968 with the merger of Mechtron Corporation with General Combustion, Inc. and Genco Manufacturing, Inc. Over the next twenty years, the Company began a series of acquisitions in fields related to asphalt production. In 1996, the Company expanded their acquisitions to include the food processing machinery industry.

• On September 13, 2000, the Company filed voluntary petitions commencing cases under Chapter 11 of the United States Bankruptcy Code. The Company emerged from Chapter 11 during the first quarter of 2002 and filed the Amended Plan on July 11, 2001, which satisfied all of the Company’s debts in full. The Company sold off their non-core businesses, including those related to the food processing machinery sector.

• Currently, the Company’s products are manufactured in one facility in the United Kingdom and two facilities in the United States. The Company believes it has the largest installed base of asphalt production plants in the United States.

• The Company’s principal core products include: asphalt plants; combustion systems; and fluid heat transfer systems:

o Asphalt Plants: Gencor manufactures hot-mix asphalt plants used in the production of asphalt paving materials; related asphalt plant equipment such as hot-mix storage silos, fabric filtration systems, cold-feed bins; all other plant components; fully mobile batch plants; mobile shredders; and trommel screens.

o Combustion Systems: Gencor manufactures combustion systems for the asphalt and aggregate drying industries; manufactures soil decontamination machinery; combustion systems for rotary dryers, kilns, fume; and liquid incinerators, boilers and tank heaters.

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Gencor Industries, Inc. CONFIDENTIAL

OVERVIEW OF COMPANY
SUMMARY

o Fluid Heat Transfer Systems: Gencor manufactures thermal fluid heat transfer systems and specialty storage tanks. Heaters are available for vertical, horizontal and underground tanks in steel, stainless steel and other materials designed to meet large or small specific job requirements.

• The Company’s asphalt-related business is seasonal in nature primarily because its products are used by the highway construction industry. Orders for the Company’s products are generally placed between November and February; and the majority of shipments are delivered before May.

• The Company’s products are sold through a combination of Company sales representatives and independent dealers and agents located worldwide.

• Gencor is engaged in product engineering and development efforts to expand its product lines and to further develop more energy-efficient and environmentally compatible systems. Significant developments include the use of cost-effective, non-fossil fuels, refuse-derived fuel, coal and coal mixtures, the economical recycling of old asphalt and new designs of environmentally compatible asphalt plants.

• Gencor has previously received cash distributions from its 45% interest in Carbontronics LLC and its 25% interests in each of Carbontronics II LLC and Carbontronics Fuels LLC (collectively “Carbontronics”). Such income is based on the applicable provisions of Section 29 of the Internal Revenue Code, pursuant to which tax credits are available as a result of the production of synthetic fuel, an alternative energy source. To qualify for such Section 29 tax credits, a taxpayer has to meet a long and stringent list of controls and requirements, which for each producer of synthetic fuels culminates in a Private Letter Ruling (PLR) issued by the Internal Revenue Service (“IRS”). As a consequence, the historical performance of the entities comprising the Company’s interests in synfuel production has been one of frequent disruptions, and total unpredictability as to when and if any income and distribution thereof may occur. Further, the limited partners of these entities have the right to suspend any and all payments under certain conditions and circumstances, including initiations of IRS review (“Tax Event”).

• After the three quarterly distributions of fiscal year 2003, in June 2003 the IRS announced that it had reason to question the scientific validity of certain test procedures and results that have been presented to it by

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Gencor Industries, Inc. CONFIDENTIAL

OVERVIEW OF COMPANY
SUMMARY

	taxpayers with interests in synfuel operations as evidence that the required “significant chemical change” has, indeed, occurred so as to quality as synthetic fuel. The IRS has suspended the issuance of PLR’s and it may revoke existing PLR’s that relied on the procedures and results under review if it determines that those test procedures and results do not demonstrate that a significant chemical change has occurred.
•	In August 2003, the Company received noticed of a Tax Event and the IRS has requested Carbontronic records proposing to examine chemical change issues. Based upon these recent events, the Company can not predict if, and when, it might expect any additional distributions from Carbontronics
•	Capitalink noted several general factors to be considered in connection with the status of Gencor as a publicly traded company:

o The Company’s common stock historically has a limited trading volume and therefore a lack of liquidity for the Company’s stockholders.

o The Company is not part of a high-growth industry that attracts investor interest and a high trading multiple.

o The Company has not realized the benefits of public company status (i.e., ability to raise capital, use of stock as currency in acquisitions), but incurs the increased expenses necessary to comply with reporting requirements and other public company obligations.

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Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

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Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

• Capitalink reviewed the Company’s historical and estimated financial data for the four fiscal years (“FY”) ended September 30, 2002, the nine months ended June 30, 2003 and preliminary data for the month of July 31, 2003. In addition, Capitalink reviewed the Company’s projections for the FY ending September 30, 2004 through September 30, 2007.

• Gencor’s operations can be divided into two main operations; (i) the core business operations, which includes the domestic and international asphalt plant manufacturing business, and (ii) their interest in Carbontronics. Capitalink’s analysis will analyze each of these operations separately.

• Revenue for the Company’s core business fell significantly over the reviewed period - from $101.4 million in FY1999 to $64.7 million for the latest twelve months (“LTM”) ended June 30, 2003. The fall in revenues was primarily due to several factors including the sale of the Company’s profitable food machinery business in FY2001, the general downturn in the economy partially stemming from the affects of September 11th, and the deterioration and closure of much of the Company’s international business.

• Despite the fall in revenues over the past five years, the Company’s gross margin has remained fairly stable between approximately 25% and 28%. However, the Company’s earning before interest, taxes, depreciation and amortization (“EBITDA”) for its core operating business has gradually fallen from a high of $12.9 million in FY2000 to $3.3 million for the LTM ended June 30, 2003, primarily due to the reasons outlined above.

• Over the past few years, the Company has also received approximately $15.2 million in cash distributions from its investment in Carbontronics. Based upon these recent events, the Company can not predict if, and when, it might expect any additional distributions from Carbontronics. The IRS is taking steps to attempt to revoke synthetic fuel tax credits and audit the chemical composition of those entities currently generating tax credits, including Carbontronics.

• Despite little growth in the Company’s core business, the Company’s capital position has improved significantly over the past two years since filing for Chapter 11 in FY2001. Prior to filing, the Company had approximately $105.9 million in interest bearing debt as of December 31, 2000. By the end of FY2001, after

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Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

	filing and through the sale of its food machinery business, total interest bearing debt fell to $35.8 million. As of June 30, 2003 interest-bearing debt was approximately $15.5 million.
•	The Company’s stockholders equity has also improved significantly from $(7.4) million as of September 30, 2000 to $12.9 million as of June 30, 2003. The improvement in the Company’s debt position and stockholders equity is primarily a result of the steady performance of the Company’s core operations, and the cash generated from Carbontronics.
•	Capitalink also reviewed the preliminary results for the month of July 2003 for the Company. For the LTM ended July 31, 2003, revenue was $58.9 million and EBITDA fell to $2.9 million. As of July 31, 2003, the Company also had approximately $9.9 million in interest bearing debt and $8.5 million in cash.
•	In August 2003, Gencor refinanced their existing debt with PNC Bank, providing them with a $20.0 million debt facility with interest paid at prime (currently at 4.0%).

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Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Normalized Comparative Summary Income Statements - Core Business
($ in thousands except per share)

															for the 9 months ended						LTM
			for years ended September 30												June 30,						June 30,
			1999			2000			2001			2002			2002			2003			2003
Revenue
	Domestic		$	68,195		$	70,391		$	53,124		$	41,207		$	32,774		$	38,664		$	47,097
	International			33,204			26,417			18,010			26,278			18,384			9,660			17,554
		Total Revenue		101,399			96,808			71,134			67,485			51,158			48,324			64,651
Cost of Goods Sold
	Domestic			59,161			47,297			37,272			29,394			23,198			27,137			33,333
	International			26,754			22,212			15,998			21,538			14,981			8,454			15,011
	Total Cost of Goods Sold			85,915			69,509			53,270			50,932			38,179			35,591			48,344
		Gross Profit		15,484			27,299			17,864			16,553			12,979			12,733			16,307
	Selling, General & Admin			26,193			16,978			14,311			12,491			9,553			9,170			12,108
	Product Engineering & Development			4,404			2,783			2,351			1,701			1,300			1,309			1,710
		Total Operating Expenses		30,597			19,761			16,662			14,192			10,853			10,479			13,818
		Operating Income (Loss)		(15,113	)		7,538			1,202			2,361			2,126			2,254			2,489
Interest Income (Expense)				(3,124	)		(2,839	)		(476	)		(2,131	)		(1,619	)		(1,143	)		(1,655	)
Other Income (Expense)				(883	)		111			(117	)		(92	)		28			12			(108	)
		Pre-tax Income (Loss)		(19,120	)		4,810			609			138			535			1,123			726
Income Tax (Benefit)				(6,576	)		(148	)		-			(39	)		256			1,116			821
		Normalized Net Income	$	(12,544	)	$	4,958		$	609		$	177		$	279		$	7		$	(95	)
Normalized EBIT			$	(15,996	)	$	7,649		$	1,085		$	2,269		$	2,154		$	2,266		$	2,381
	Total Depreciation & Amortization		$	4,731		$	5,240		$	4,021		$	1,378		$	1,170		$	706		$	914
Normalized EBITDA			$	(11,265	)	$	12,889		$	5,106		$	3,647		$	3,324		$	2,972		$	3,295
	Capital Expenditures, net of Disposals (CAPEX, net)		$	1,613		$	1,624		$	88		$	304		$	219		$	84		$	169
Normalized EBITDA - CAPEX			$	(12,878	)	$	11,265		$	5,018		$	3,343		$	3,105		$	2,888		$	3,126
Earnings per Share
	Basic Normalized EPS		$	(1.44	)	$	0.57		$	0.07		$	0.02		$	0.03		$	-		$	(0.01	)
	Basic Reported EPS		$	(2.75	)	$	0.09		$	1.03		$	0.24		$	0.18		$	0.87		$	0.93
	Weighted Average Shares Outstanding (thousands)			8,682			8,682			8,682			8,682			8,682			8,682			8,682
	Diluted Normalized EPS		$	(1.44	)	$	0.57		$	0.07		$	0.02		$	0.03		$	-		$	(0.01	)
	Diluted Reported EPS		$	(2.75	)	$	0.09		$	1.03		$	0.23		$	0.17		$	0.85		$	0.92
	Weighted Average Shares Outstanding (thousands)			8,682			8,682			8,682			9,072			9,186			8,872			8,758
Normalizing Reconciliation
	Restructuring/Goodwill Impairment		$	-		$	(3,690	)	$	(5,072	)	$	(302	)	$	(302	)	$	-		$	-
	Other Unusual (Expense) Gain Items			-			-			215			1,954			1,954			12,228			12,228
	Income Tax Shelter (Charge) from Unusual Items			-			-			-			-			(578	)		(4,700	)		(4,122	)
		Unusual (Expense) Gain Items, net of Taxes		-			(3,690	)		(4,857	)		1,652			1,074			7,528			8,106
	Discontinued Operations, net of Taxes			(11,322	)		(476	)		9,336			241			172			-			69
	Extraordinary Items, net of Taxes			-			-			3,835			-			-			-			-
		Total Reconciling Items, net of Taxes	$	(11,322	)	$	(4,166	)	$	8,314		$	1,893		$	1,246		$	7,528		$	8,175
Reported Income Tax (Benefit)			$	(6,576	)	$	(148	)	$	-		$	(39	)	$	834		$	5,816		$	4,943
Reported Net Income (Loss)			$	(23,866	)	$	792		$	8,923		$	2,070		$	1,525		$	7,535		$	8,080
Comprehensive Gain/(Loss)			$	(2,449	)	$	(3,940	)	$	774		$	951		$	743		$	(23	)	$	185
Reported Comprehensive Net Income (Loss)			$	(26,315	)	$	(3,148	)	$	9,697		$	3,021		$	2,268		$	7,512		$	8,265

Sources of information: Company financial statements and management

Page 19

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Normalized Common Sized Summary Income Statements - Core Business

															for the 9 months ended						LTM
			for years ended September 30												June 30,						June 30,
			1999			2000			2001			2002			2002			2003			2003
Revenue
	Domestic			67.3	%		72.7	%		74.7	%		61.1	%		64.1	%		80.0	%		72.8	%
	International			32.7	%		27.3	%		25.3	%		38.9	%		35.9	%		20.0	%		27.2	%
		Total Revenue		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of Goods Sold
	Domestic			58.3	%		48.9	%		52.4	%		43.6	%		45.3	%		56.2	%		51.6	%
	International			26.4	%		22.9	%		22.5	%		31.9	%		29.3	%		17.5	%		23.2	%
		Total Cost of Goods Sold		84.7	%		71.8	%		74.9	%		75.5	%		74.6	%		73.7	%		74.8	%
		Gross Profit		15.3	%		28.2	%		25.1	%		24.5	%		25.4	%		26.3	%		25.2	%
	Selling, General & Admin			25.8	%		17.5	%		20.1	%		18.5	%		18.7	%		19.0	%		18.7	%
	Product Engineering & Development			4.3	%		2.9	%		3.3	%		2.5	%		2.5	%		2.7	%		2.6	%
		Total Operating Expenses		30.2	%		20.4	%		23.4	%		21.0	%		21.2	%		21.7	%		21.4	%
		Operating Income (Loss)		-14.9	%		7.8	%		1.7	%		3.5	%		4.2	%		4.7	%		3.8	%
Interest Income (Expense)				-3.1	%		-2.9	%		-0.7	%		-3.2	%		-3.2	%		-2.4	%		-2.6	%
Other Income (Expense)				-0.9	%		0.1	%		-0.2	%		-0.1	%		0.1	%		0.0	%		-0.2	%
		Pre-tax Income (Loss)		-18.9	%		5.0	%		0.9	%		0.2	%		1.0	%		2.3	%		1.1	%
Income Tax (Benefit)				-6.5	%		-0.2	%		0.0	%		-0.1	%		0.5	%		2.3	%		1.3	%
		Normalized Net Income		-12.4	%		5.1	%		0.9	%		0.3	%		0.5	%		0.0	%		-0.1	%
Normalized EBIT				-15.8	%		7.9	%		1.5	%		3.4	%		4.2	%		4.7	%		3.7	%
	Total Depreciation & Amortization			4.7	%		5.4	%		5.7	%		2.0	%		2.3	%		1.5	%		1.4	%
Normalized EBITDA				-11.1	%		13.3	%		7.2	%		5.4	%		6.5	%		6.2	%		5.1	%
	Capital Expenditures, net of Disposals (CAPEX, net)			1.6	%		1.7	%		0.1	%		0.5	%		0.4	%		0.2	%		0.3	%
Normalized EBITDA - CAPEX				-12.7	%		11.6	%		7.1	%		5.0	%		6.1	%		6.0	%		4.8	%
Normalizing Reconciliation
	Restructuring/Goodwill Impairment			0.0	%		-3.8	%		-7.1	%		-0.4	%		-0.6	%		0.0	%		0.0	%
	Other Unusual (Expense) Gain Items			0.0	%		0.0	%		0.3	%		2.9	%		3.8	%		25.3	%		18.9	%
	Income Tax Shelter (Charge) from Unusual Items			0.0	%		0.0	%		0.0	%		0.0	%		-1.1	%		-9.7	%		-6.4	%
		Unusual (Expense) Gain Items, net of Taxes		0.0	%		-3.8	%		-6.8	%		2.4	%		2.1	%		15.6	%		12.5	%
Discontinued Operations, net of Taxes				-11.2	%		-0.5	%		13.1	%		0.4	%		0.3	%		0.0	%		0.1	%
Extraordinary Items, net of Taxes				0.0	%		0.0	%		5.4	%		0.0	%		0.0	%		0.0	%		0.0	%
		Total Reconciling Items, net of Taxes		-11.2	%		-4.3	%		11.7	%		2.8	%		2.4	%		15.6	%		12.6	%
Reported Income Tax (Benefit)				-6.5	%		-0.2	%		0.0	%		-0.1	%		1.6	%		12.0	%		7.6	%
Reported Net Income (Loss)				-23.5	%		0.8	%		12.5	%		3.1	%		3.0	%		15.6	%		12.5	%
Comprehensive Gain/(Loss)				-2.4	%		-4.1	%		1.1	%		1.4	%		1.5	%		0.0	%		0.3	%
Reported Comprehensive Net Income (Loss)				-23.5	%		0.8	%		12.5	%		3.1	%		3.0	%		15.6	%		12.8	%

Sources of information: Company financial statements and management

Page 20

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Comparative Summary Balance Sheets - Core Business
($ in thousands, except per share)

			as of September 30,												as of June 30,
			1999			2000			2001			2002			2002			2003
Assets
Current Assets
	Cash & Equivalents		$	9,581		$	17,971		$	14,158		$	12,305		$	12,574		$	16,113
	Accounts Receivable			29,665			22,469			8,672			8,512			12,157			4,390
	Inventory			2,813			1,661			23,105			19,012			18,014			14,156
	Deferred Income Taxes			39,780			41,394			-			-			-			-
	Prepaid & Other			11,585			2,374			2,021			1,938			1,367			1,115
		Total Current Assets		93,424			85,869			47,956			41,767			44,112			35,774
Property & Equipment				65,078			63,935			33,930			33,673			33,601			33,760
Less Accumulated Depreciation				(29,301	)		(30,368	)		(17,156	)		(17,980	)		(17,861	)		(18,629	)
		Property & Equipment, net		35,777			33,567			16,774			15,693			15,740			15,131
Goodwill, net				13,107			12,018			379			364			375			364
Other Assets				9,639			8,492			4,478			4,360			4,374			4,292
			$	151,947		$	139,946		$	69,587		$	62,184		$	64,601		$	55,561
Liabilities & Stockholders’ Equity
Current Liabilities
	Accounts Payable		$	21,457		$	17,079		$	8,788		$	9,000		$	7,664		$	6,289
	Accrued Expenses			18,362			14,629			15,513			9,947			11,724			8,440
	Income Taxes Payable			2,358			1,362			3,470			3,534			4,533			8,318
	Interest Bearing Debt			102,115			105,867			1,495			6,264			3,270			5,439
	Customer Deposits			5,445			1,735			405			498			618			893
		Total Current Liabilities		149,737			140,672			29,671			29,243			27,809			29,379
Long Term Interest Bearing Debt				-			-			34,333			24,337			28,941			10,020
Post-retirement benefits				2,630			2,950			-			-			-			-
Other Long Term				3,855			3,747			3,309			3,309			3,309			3,309
		Total Liabilities		156,222			147,369			67,313			56,889			60,059			42,708
Stockholders’ Equity
	Common stock			697			697			697			697			697			697
	Class B Stock			189			189			189			189			189			189
	Paid in Capital			11,343			11,343			11,343			11,343			11,343			11,343
	Accumulated Earnings (Deficit)			(10,902	)		(10,110	)		(1,187	)		883			338			8,418
	Accumulated Other Comprehensive Loss			(3,803	)		(7,743	)		(6,969	)		(6,018	)		(6,226	)		(5,995	)
	Treasury Stock & Stock Receivable			(1,799	)		(1,799	)		(1,799	)		(1,799	)		(1,799	)		(1,799	)
		Total Stockholders’ Equity		(4,275	)		(7,423	)		2,274			5,295			4,542			12,853
			$	151,947		$	139,946		$	69,587		$	62,184		$	64,601		$	55,561
Net Working Capital			$	(56,313	)	$	(54,803	)	$	18,285		$	12,524		$	16,303		$	6,395
Common Shares Outstanding (thousands)				8,682			8,682			8,682			8,682			8,682			8,682
Book Value per Share			$	(0.49	)	$	(0.85	)	$	0.26		$	0.61		$	0.52		$	1.48
Tangible Book Value Per Share			$	(2.00	)	$	(2.24	)	$	0.22		$	0.57		$	0.48		$	1.44

Sources of information: Company financial statements and management

Page 21

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Common Sized Summary Balance Sheets - Core Business

			as of September 30,												as of June 30,
			1999			2000			2001			2002			2002			2003
Assets
Current Assets
	Cash & Equivalents			6.3	%		12.8	%		20.3	%		19.8	%		19.5	%		29.0	%
	Accounts Receivable			19.5	%		16.1	%		12.5	%		13.7	%		18.8	%		7.9	%
	Inventory			1.9	%		1.2	%		33.2	%		30.6	%		27.9	%		25.5	%
	Deferred Income Taxes			26.2	%		29.6	%		0.0	%		0.0	%		0.0	%		0.0	%
	Prepaid & Other			7.6	%		1.7	%		2.9	%		3.1	%		2.1	%		2.0	%
		Total Current Assets		61.5	%		61.4	%		68.9	%		67.2	%		68.3	%		64.4	%
Property & Equipment				42.8	%		45.7	%		48.8	%		54.2	%		52.0	%		60.8	%
Less Accumulated Depreciation				-19.3	%		-21.7	%		-24.7	%		-28.9	%		-27.6	%		-33.5	%
		Property & Equipment, net		23.5	%		24.0	%		24.1	%		25.2	%		24.4	%		27.2	%
Goodwill, net				8.6	%		8.6	%		0.5	%		0.6	%		0.6	%		0.7	%
Other Assets				6.3	%		6.1	%		6.4	%		7.0	%		6.8	%		7.7	%
				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Liabilities & Stockholders’ Equity
Current Liabilities
	Accounts Payable			14.1	%		12.2	%		12.6	%		14.5	%		11.9	%		11.3	%
	Accrued Expenses			12.1	%		10.5	%		22.3	%		16.0	%		18.1	%		15.2	%
	Income Taxes Payable			1.6	%		1.0	%		5.0	%		5.7	%		7.0	%		15.0	%
	Interest Bearing Debt			67.2	%		75.6	%		2.1	%		10.1	%		5.1	%		9.8	%
	Customer Deposits			3.6	%		1.2	%		0.6	%		0.8	%		1.0	%		1.6	%
		Total Current Liabilities		98.5	%		100.5	%		42.6	%		47.0	%		43.0	%		52.9	%
Long Term Interest Bearing Debt				0.0	%		0.0	%		49.3	%		39.1	%		44.8	%		18.0	%
Post-retirement benefits				1.7	%		2.1	%		0.0	%		0.0	%		0.0	%		0.0	%
Other Long Term				2.5	%		2.7	%		4.8	%		5.3	%		5.1	%		6.0	%
		Total Liabilities		102.8	%		105.3	%		96.7	%		91.5	%		93.0	%		76.9	%
Stockholders’ Equity
	Common stock			0.5	%		0.5	%		1.0	%		1.1	%		1.1	%		1.3	%
	Class B Stock			0.1	%		0.1	%		0.3	%		0.3	%		0.3	%		0.3	%
	Paid in Capital			7.5	%		8.1	%		16.3	%		18.2	%		17.6	%		20.4	%
	Accumulated Earnings (Deficit)			-7.2	%		-7.2	%		-1.7	%		1.4	%		0.5	%		15.2	%
	Treasury Stock & Stock Receivable			-1.2	%		-1.3	%		-2.6	%		-2.9	%		-2.8	%		-3.2	%
		Total Stockholders’ Equity		-2.8	%		-5.3	%		3.3	%		8.5	%		7.0	%		23.1	%
				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Net Working Capital				-37.1	%		-39.2	%		26.3	%		20.1	%		25.2	%		11.5	%

Sources of information: Company financial statements and management

Page 22

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Comparative Financial Analysis - Core Business
($ in thousands, except per share)

														as of & for the 9 months ended						as of & for LTM
		as of & for years ended September 30												June 30,						June 30,
		1999			2000			2001			2002			2002			2003			2003
Financial Review
	Revenue	$	101,399		$	96,808		$	71,134		$	67,485		$	51,158		$	48,324		$	64,651
	Gross Profit	$	15,484		$	27,299		$	17,864		$	16,553		$	12,979		$	12,733		$	16,307
	Total Operating Expenses	$	30,597		$	19,761		$	16,662		$	14,192		$	10,853		$	10,479		$	13,818
	Operating Income	$	(15,113	)	$	7,538		$	1,202		$	2,361		$	2,126		$	2,254		$	2,489
	Pre-tax Income (Loss)	$	(19,120	)	$	4,810		$	609		$	138		$	535		$	1,123		$	726
	Normalized Net Income (Loss)	$	(12,544	)	$	4,958		$	609		$	177		$	279		$	7		$	(95	)
	Normalized EBIT	$	(15,996	)	$	7,649		$	1,085		$	2,269		$	2,154		$	2,266		$	2,381
	Normalized EBITDA	$	(11,265	)	$	12,889		$	5,106		$	3,647		$	3,324		$	2,972		$	3,295
	Normalized Basic EPS	$	(2.75	)	$	0.09		$	1.03		$	0.24		$	0.18		$	0.87		$	0.93
	Normalized Diluted EPS	$	(2.75	)	$	0.09		$	1.03		$	0.23		$	0.17		$	0.85		$	0.92
	Total Assets	$	151,947		$	139,946		$	69,587		$	62,184		$	64,601		$	55,561		$	55,561
	Net Worth	$	(4,275	)	$	(7,423	)	$	2,274		$	5,295		$	4,542		$	12,853		$	12,853
	Tangible Net Worth	$	(17,382	)	$	(19,441	)	$	1,895		$	4,931		$	4,167		$	12,489		$	12,489
	Total Interest Bearing Debt	$	102,115		$	105,867		$	35,828		$	30,601		$	32,211		$	15,459		$	15,459
	Net Interest Bearing Debt	$	92,534		$	87,896		$	21,670		$	18,296		$	19,637		$	(654	)	$	(654	)
	Total Capitalization	$	97,840		$	98,444		$	38,102		$	35,896		$	36,753		$	28,312		$	28,312
Financial Strength
	Quick Ratio		0.6			0.6			0.8			0.8			0.9			0.7			0.7
	Current Ratio		0.6			0.6			1.6			1.4			1.6			1.2		na
	Total Liabilities to Net Worth		-3654.3	%		-1985.3	%		2960.1	%		1074.4	%		1322.3	%		332.3	%		332.3	%
	Total Interest Bearing Debt to Net Worth		-2388.7	%		-1426.2	%		1575.5	%		577.9	%		709.2	%		120.3	%		120.3	%
	Total Interest Bearing Debt to Total Capitalization		104.4	%		107.5	%		94.0	%		85.2	%		87.6	%		54.6	%		54.6	%
	Net Interest Bearing Debt to Total Capitalization		94.6	%		89.3	%		56.9	%		51.0	%		53.4	%		-2.3	%		-2.3	%
	Interest Expense to Interest Bearing Debt		3.1	%		2.7	%		1.3	%		7.0	%		5.0	%		7.4	%		10.7	%
	Total Interest Bearing Debt to Normalized EBITDA	na				8.2			7.0			8.4			9.7			5.2			4.7
	Normalized EBITDA to Interest Expense	na				4.5			10.7			1.7			2.1			2.6			2.0
	Normalized EBITDA-CAPEX, net to Interest Exp.	na				4.0			10.5			1.6			1.9			2.5			1.9
Effectiveness and Efficiency
	Accounts Receivable Turnover	na				3.7			4.6			7.9			3.7			2.1			7.8
	Inventory Turnover	na				31.1			4.3			2.4			1.9			2.1			3.0
	Asset Turnover	na				0.7			0.7			1.0			0.8			0.8			1.1
	Days Sales Outstanding	na				98.3			79.9			46.5			74.5			127.2			46.7
	Days Inventory Outstanding	na				11.7			84.8			150.9			147.0			127.2			121.4
	Days Payable Outstanding	na				78.8			67.5			49.8			45.8			45.3			41.0
	Normalized EBIT to Average Assets	na				5.2	%		1.0	%		3.4	%	na			na				4.0	%
	Normalized EBIT to Net Worth	na				-130.8	%		-42.1	%		60.0	%	na			na				27.4	%
	Normalized EBITDA to Average Assets	na				8.8	%		4.9	%		5.5	%	na			na				5.5	%
	Normalized EBITDA to Net Worth	na				-220.4	%		-198.3	%		96.4	%	na			na				37.9	%
	Normalized Net Income to Average Assets	na				3.4	%		0.6	%		0.3	%	na			na				-0.2	%
	Normalized Net Income to Net Worth	na				-84.8	%		-23.7	%		4.7	%	na			na				-1.1	%

Sources of information: Company financial statements and management

Page 23

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Comparative Financial Analysis Continued - Core Business
($ in thousands, except per share)

														as of & for the 9 months ended						as of & for LTM
		as of & for years ended September 30												June 30,						June 30,
		1999			2000			2001			2002			2002			2003			2003
Profitability Ratios (as % of Revenue)
	Gross Profit Margin		15.3	%		28.2	%		25.1	%		24.5	%		25.4	%		26.3	%		25.2	%
	SG&A		25.8	%		17.5	%		20.1	%		18.5	%		18.7	%		19.0	%		18.7	%
	Total Operating Expenses		30.2	%		20.4	%		23.4	%		21.0	%		21.2	%		21.7	%		21.4	%
	Operating Income		-14.9	%		7.8	%		1.7	%		3.5	%		4.2	%		4.7	%		3.8	%
	Pre-tax Income (Loss)		-18.9	%		5.0	%		0.9	%		0.2	%		1.0	%		2.3	%		1.1	%
	Normalized Net Income (Loss)		-12.4	%		5.1	%		0.9	%		0.3	%		0.5	%		0.0	%		-0.1	%
	Normalized EBIT		-15.8	%		7.9	%		1.5	%		3.4	%		4.2	%		4.7	%		3.7	%
	Normalized EBITDA		-11.1	%		13.3	%		7.2	%		5.4	%		6.5	%		6.2	%		5.1	%
Growth Rates
	Revenue	na				-4.5	%		-26.5	%		-5.1	%	na				-5.5	%		-4.2	%
	Gross Profit	na				76.3	%		-34.6	%		-7.3	%	na				-1.9	%		-1.5	%
	Operating Income	na			na				-84.1	%		96.4	%	na				6.0	%		5.4	%
	Pre-tax Income (Loss)	na			na				-87.3	%		-77.3	%	na				109.9	%		426.1	%
	Normalized Net Income (Loss)	na			na				-87.7	%		-70.9	%	na				-97.6	%		-153.9	%
	Normalized EBIT	na			na				-85.8	%		109.1	%	na				5.2	%		4.9	%
	Normalized EBITDA	na			na				-60.4	%		-28.6	%	na				-10.6	%		-9.7	%
	Normalized Basic EPS	na			na				1044.4	%		-76.7	%	na				383.3	%		287.5	%
	Normalized Diluted EPS	na			na				1044.4	%		-77.7	%	na				400.0	%		300.0	%
	Total Assets	na				-7.9	%		-50.3	%		-10.6	%	na				-14.0	%		-10.7	%
	Net Worth	na			na			na				132.8	%	na				183.0	%		142.7	%
	Tangible Net Worth	na			na			na				160.2	%	na				199.7	%		153.3	%
	CAPEX, net	na				0.7	%		-94.6	%		245.5	%	na				-61.6	%		-44.4	%
Cumulative Average Growth Rate (CAGR) Statistics
	Revenue	na				-4.5	%		-16.2	%		-12.7	%	na			na			na
	Gross Profit	na				76.3	%		7.4	%		2.3	%	na			na			na
	Operating Income	na			na			na			na			na			na			na
	Pre-tax Income (Loss)	na			na			na			na			na			na			na
	Normalized Net Income (Loss)	na			na			na			na			na			na			na
	Normalized EBIT	na			na			na			na			na			na			na
	Normalized EBITDA	na			na			na			na			na			na			na
	Normalized Basic EPS	na			na			na			na			na			na			na
	Normalized Diluted EPS	na			na			na			na			na			na			na
	Total Assets	na				-7.9	%		-32.3	%		-25.8	%	na			na			na
	Net Worth	na			na			na			na			na			na			na
	Tangible Net Worth	na			na			na			na			na			na			na
	CAPEX, net	na				0.7	%		-76.6	%		-42.7	%	na			na			na
Depreciation & Capital Spending
	Depreciation to CAPEX, net		293.3	%		322.7	%		4569.3	%		453.3	%		534.2	%		840.5	%		540.8	%
	CAPEX, net to Revenue		1.6	%		1.7	%		0.1	%		0.5	%		0.4	%		0.2	%		0.3	%

Sources of information: Company financial statements and management

Page 24

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Selected Normalized Income Statement Graphs - Core Business
($ in thousands, except per share)

Sources of information: Company financial statements and management

Page 25

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Selected Normalized Profitability and Cost (as % of Revenue) Graphs - Core Business

Sources of information: Company financial statements and management

Page 26

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Selected Normalized Financial Strength Graphs - Core Business
($ in thousands)

Sources of information: Company financial statements and management

Page 27

Gencor Industries, Inc. CONFIDENTIAL

COMPANY FINANCIAL PERFORMANCE

Selected Normalized Efficiency Graphs - Core Business

Sources of information: Company financial statements and management

Page 28

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Page 29

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

• Capitalink reviewed the daily closing market price and trading volume of the Company’s common stock over two time periods:

• One year look back period (October 3, 2002 through October 3, 2003).

• Period since Amended Plan of Reorganization was approved (the period since July 12, 2001).

• Capitalink compared the daily closing market price performance of the Company’s common stock for both periods to both the Comparable Companies (as defined below) and the Russell 3000 Index.

• Capitalink calculated total trading volumes at various closing price ranges of the Company’s common stock. In addition, the number of trading days, and the respective percentages, at certain trading volumes, was set forth.

• Capitalink noted the following characteristics of the Company’s common stock:

• For the one year look back period:

• The Company’s stock has experienced limited liquidity with the average and median daily number of shares traded was 3,652 and 1,400 respectively. It was further noted that there was no volume on 52 trading days or approximately 20.6% of the available trading days.

• During this period, the Company’s share price ranged from a high of $3.45 to a low of $0.93. The Company’s common stock closed at $2.45 on October 3, 2003.

• During this period, the Company’s common stock increased 58.1%, while the Comparable Companies index fell 8.2% and the Russell 3000 Index rose 10.1%.

• For the period since July 12, 2001:

• The Company’s average and median daily number of shares traded was 5,608 and 2,100 respectively. It was further noted that there was no volume on 16.5% of the available trading days.

• During this period, the Company’s share price ranged from a high of $4.35 to a low of $0.93.

• During this period, the Company’s common stock increased 6.5%, while the Comparable Companies index fell 10.8% and the Russell 3000 Index fell 12.3%.

Page 30

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Closing Price & Trading Volume History

October 03, 2002 - October 03, 2003

Start	End	High	Average		Median		Low	Avg. Volume		Median Volume
3-Oct-02 $1.5500	3-Oct-03 $2.4500	3-Jul-03 $3.4500	$	1.7544	$	1.4000	30-Dec-02 $0.9300		3,652		1,400

Sources of information: Commodity Systems, Inc.

Page 31

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor vs Comparable Company Index (1) and Russell 3000 Index

October 03, 2002 - October 03, 2003

% Change	Gencor			Comparables			Russell 3000
First Half of Period		-16.1	%		-36.4	%		-8.0	%
Second Half of Period		88.5	%		44.2	%		19.6	%
Full Period		58.1	%		-8.2	%		10.1	%

(1) Reflects the market cap weighted prices of the comparable companies utilized in the Comparable Company Analysis.

Sources of information: Commodity Systems, Inc.

Page 32

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Closing Price Ranges as Percentage of Total Trading Days

October 03, 2002 - October 03, 2003

Price Range	$0.000 - $1.000			$1.001 - $1.313			$1.314 - $1.625			$1.626 - $1.938			$1.939 - $2.250			$2.251 - $2.563			$2.564 - $2.875			$2.876 - $3.188			$3.189 +
Days in Range		2			117			27			15			21			34			10			17			10
Percentage		0.8	%		46.2	%		10.7	%		5.9	%		8.3	%		13.4	%		4.0	%		6.7	%		4.0	%

Sources of information: Commodity Systems, Inc.

Page 33

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Trading Volume per Price Range as Percentage of Total Volume

October 03, 2002 - October 03, 2003

Price Range	$0.000 - $1.000			$1.001 - $1.313			$1.314 - $1.625			$1.626 - $1.938			$1.939 - $2.250			$2.251 - $2.563			$2.564 - $2.875			$2.876 - $3.188			$3.189 +
Days in Range		33,300			294,300			63,400			44,100			50,200			151,300			31,800			159,100			96,500
Percentage		3.6	%		31.9	%		6.9	%		4.8	%		5.4	%		16.4	%		3.4	%		17.2	%		10.4	%

Sources of information: Commodity Systems, Inc.

Page 34

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Trading Volume Ranges as a Percentage of Total Volume

October 03, 2002 - October 03, 2003

	No volume			>0<2,000			>2,001<4,000			>4,001<6,000			>6,001<10,000			>10,001<15,000			>15,001<50,000			>50,001
Days in Range		52			96			38			19			28			9			9			2
Percentage		20.6	%		37.9	%		15.0	%		7.5	%		11.1	%		3.6	%		3.6	%		0.8	%

Sources of information: Commodity Systems, Inc.

Page 35

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Closing Price & Trading Volume History

July 12, 2001 - October 03, 2003

Start	End	High	Average		Median		Low	Avg. Volume		Median Volume
12-Jul-01 $2.3000	3-Oct-03 $2.4500	29-Apr-02 $4.3500	$	2.4353	$	2.5000	30-Dec-02 $0.9300		5,608		2,100

Sources of information: Commodity Systems, Inc.

Page 36

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor vs Comparable Company Index (1) and Russell 3000 Index

July 12, 2001 - October 03, 2003

	Gencor			Comparables			Russell 3000
% Change		6.5	%		-10.8	%		-12.3	%

(1) Reflects the market cap weighted prices of the comparable companies utilized in the Comparable Company Analysis.

Sources of information: Commodity Systems, Inc.

Page 37

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Closing Price Ranges as Percentage of Total Trading Days

July 12, 2001 - October 03, 2003

Price Range	$0.000 - $1.000			$1.001 - $1.438			$1.439 - $1.875			$1.876 - $2.313			$2.314 - $2.750			$2.751 - $3.188			$3.189 - $3.625			$3.626 - $4.063			$4.064 +
Days in Range		2			126			54			67			90			91			52			45			32
Percentage		0.4	%		22.5	%		9.7	%		12.0	%		16.1	%		16.3	%		9.3	%		8.1	%		5.7	%

Sources of information: Commodity Systems, Inc.

Page 38

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Trading Volume per Price Range as Percentage of Total Volume

July 12, 2001 - October 03, 2003

Price Range	$0.000 - $1.000			$1.001 - $1.438			$1.439 - $1.875			$1.876 - $2.313			$2.314 - $2.750			$2.751 - $3.188			$3.189 - $3.625			$3.626 - $4.063			$4.064 +
Volume		33,300			316,700			154,100			254,300			463,300			818,200			577,100			335,700			182,300
Percentage		1.1	%		10.1	%		4.9	%		8.1	%		14.8	%		26.1	%		18.4	%		10.7	%		5.8	%

Sources of information: Commodity Systems, Inc.

Page 39

Gencor Industries, Inc. CONFIDENTIAL

COMPANY MARKET PERFORMANCE

Gencor Trading Volume Ranges as a Percentage of Total Volume

July 12, 2001 - October 03, 2003

	No volume			>0<2,000			>2,001<4,000			>4,001<6,000			>6,001<10,000			>10,001<15,000			>15,001<50,000			>50,001
Days in Range		92			184			89			40			63			35			51			5
Percentage		16.5	%		32.9	%		15.9	%		7.2	%		11.3	%		6.3	%		9.1	%		0.9	%

Sources of information: Commodity Systems, Inc.

Page 40

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS

Page 41

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
METHODOLOGIES

• Based upon a review of the Company’s historical financial data, projections, and certain other qualitative data, Capitalink utilized several valuation methodologies to determine a range of values for the Company.

• Capitalink did not form a conclusion as to whether any individual analysis, considered in isolation, supported or failed to support an opinion as to the fairness, from a financial point of view, of the Offer.

• Capitalink did not place any particular reliance or weight on any individual analysis, but instead concluded that the analyses, taken as a whole, supported its determination. Accordingly, the analyses must be considered as a whole and selecting portions of analyses or the factors considered, without considering all analyses and factors collectively, could create an incomplete and incorrect view of the process underlying the analyses in connection with the preparation of the opinion.

• The financial reviews and analyses include information presented in tabular format. In order to fully understand Capitalink’s financial review and analyses, the tables must be read together with the text of the presentation. The tables alone are not a complete description of the financial review and analyses and considering the tables alone could create a misleading or incomplete view of Capitalink’s financial review and analyses.

• The methodologies utilized by Capitalink included:

• A review of the historical and projected financial information of the Company as prepared by management.

• A review and comparison of the trading of, and the trading market for, the common stock of the Company, the Comparable Companies and a general market index over the last twelve months, and since July 12, 2001.

• A review of the estimated present value of the Note.

• A review of a discounted cash flow analysis of the Company, with sensitivity analyses based on a range of assumptions.

• A review and comparison of trading multiples for deemed comparable publicly-traded companies for the Company.

Page 42

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
METHODOLOGIES

• A review and comparison of transaction multiples for deemed comparable transactions for the Company.

• A review and comparison of the premiums paid in transactions involving the acquisition of a controlling ownership interest in publicly traded companies.

• A review of the premiums implied by the per share consideration in the Offer.

• Reviewed and analyzed a range of possible scenarios and cash flow implications of the Company’s Carbontronics investments.

Page 43

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SUMMARY

Illustrative Indicated Reference Range Summary

(1) Please reference the appropriate Analysis for further discussion and sources of information.

Page 44

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SUMMARY

Indicated Reference Range Summary
($ in thousands, except per share)

												Indicated Common Stock		Enterprise Value of		Indicated Common Stock
							Selected Multiple			Enterprise Value of		Share Price of		Core Business		Share Price of Core Business
Methodology (1)				Statistic			Range			Core Business		Core Business		& Carbontronics		& Carbontronics
Discounted Cash Flow Analysis
	LTM Revenue Terminal Multiple									$	12,568 - $16,872	$	1.32 - $1.72	$	19,744 - $27,017	$	2.02 - $2.71
	LTM EBITDA Terminal Multiple									$	16,023 - $20,536	$	1.64 - $2.06	$	23,198 - $30,682	$	2.34 - $3.05
	Perpetual Growth Method									$	16,468 - $22,618	$	1.68 - $2.25	$	23,644 - $32,763	$	2.39 - $3.25
			Indicated Reference Range							$	15,020 - $20,009	$	1.55 - $2.01	$	22,195 - $30,154	$	2.25 - $3.01
Comparable Company Analysis
	Enterprise Value as Multiple of:
		LTM 7/31/03 Revenue		$	58,950			0.35x - 0.45x		$	20,633 - $26,528	$	2.07 - $2.62	$	27,808 - $36,673	$	2.77 - $3.61
		CFY Revenue		$	55,843			0.4x  -  0.5x		$	19,545 - $25,129	$	1.97 - $2.49	$	26,720 - $35,274	$	2.67 - $3.48
		NFY Revenue		$	51,014			0.3x     0.4x		$	15,304   $20,406	$	1.57   $2.05	$	22,480 - $30,551	$	2.28 - $3.04
		LTM 7/31/03 EBITDA		$	2,880			5.0x     6.0x		$	14,400   $17,280	$	1.49   $1.76	$	21,575 - $27,425	$	2.19 - $2.75
		CFY EBITDA		$	2,758			4.5x -  5.5x		$	12,411   $15,169	$	1.30   $1.56	$	19,586 - $25,314	$	2.01 - $2.56
		NFY EBITDA		$	4,370			4.0x -  5.0x		$	17,480   $21,850	$	1.78   $2.18	$	24,655 - $31,995	$	2.48 - $3.18
			Indicated Reference Range							$	16,629 - $21,060	$	1.70 - $2.11	$	23,804 - $31,205	$	2.40 - $3.10
Comparable Transactions Analysis
	Enterprise Value as Multiple of:
		LTM 7/31/03 Revenue		$	58,950			0.36x - 0.41x		$	21,251 - $23,908	$	2.13 - $2.37	$	28,426 - $34,053	$	2.83 - $3.37
		LTM 7/31/03 EBITDA		$	2,880			5.1x - 6.0x		$	14,702 - $17,280	$	1.52 - $1.76	$	21,878 - $27,425	$	2.22 - $2.75
			Indicated Reference Range							$	17,977 - $20,594	$	1.82 - $2.07	$	25,152 - $30,739	$	2.53 - $3.06
Acquisition Premiums
	Prior One Day			$	2.35			18.9% - 35.5	%							$	2.79 - $3.18
	Prior 5 Day			$	2.30			11.1% - 37.5	%							$	2.55 - $3.16
	Prior 30 Day			$	2.15			17.8% - 42.5	%							$	2.53 - $3.06
			Indicated Reference Range													$	2.63 - $3.14
Premiums Paid Analysis
	As of October 03, 2003				16.7	%
	Prior Day Closing Price				21.7	%
	Prior 5 Trading Day Average Closing Price				20.7	%
	Prior 10 Trading Day Average Closing Price				21.2	%
	Prior 20 Trading Day Average Closing Price				20.9	%
	Prior 30 Trading Day Average Closing Price				23.5	%
	Prior 60 Trading Day Average Closing Price				16.1	%
	Prior 90 Trading Day Average Closing Price				7.3	%
	Prior Six Month Average Closing Price				24.6	%
	Prior Year Average Closing Price				60.6	%

(1) Please reference the appropriate Analysis for further discussion and sources of information.

Page 45

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
NOTE ANALYSIS

• In order to effectively compare the consideration in the Offer to implied ranges of value derived in certain of its financial analyses, Capitalink determined a range of net present values of the Notes.

• In determining a range of net present values of the Notes, an appropriate discount rate should reflect current general economic and market risks in addition to specific risks associated with the investment.

• Capitalink noted that the Notes would be unsecured and subordinate to all of the Company’s existing debt to banks and other lenders and to all other future debt that the Company designates as debt senior to the Notes. In addition, Capitalink noted that the Company does not intend to register the Notes with the SEC nor list the Notes for trading on an exchange or qualify the Notes for trading on an automated quotation system operated by a national securities association. Therefore, Capitalink assumed that a trading market was not expected to develop for the Notes.

• Capitalink noted that as of July 31, 2003, the Company had senior debt of approximately $9.8 million and approximately $8.5 million in cash.

• In order to determine an appropriate range of discount rates to utilize in the present value calculation, Capitalink undertook a search for other obligations with similar risk characteristics consistent with the Notes. In this regard, Capitalink utilized corporate obligations rated BB or lower in its analysis:

• Based on the Standard and Poor’s Speculative Grade Credit Index on October 1, 2003, the yield of a speculative three-year corporate bond is 969.6 basis points over an estimated three-year current treasury yield of 2.5%. This results in a yield of 12.2%.

• An examination of all substantial risk corporate bonds [B+ to CCC- grade] maturing in 3 – 5 years resulted in a range of yields between 5.7% and 15.61%.

• It was noted that all of the obligations in the review were, or had at one time been, publicly traded and that there was no trading market expected to develop for the Notes. This lack of liquidity should be reflected in a higher yield for the Notes.

Page 46

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
NOTE ANALYSIS

• Capitalink determined an appropriate discount rate to be 16.5% given the Company’s estimated WACC of 17.5% and the current prevailing yields on speculative bonds. Discounting the Note at such rate generated an indicated value for the Note of approximately $0.86.

• Capitalink added the indicated value of the Note to the $2.00 cash per share to obtain the total value of the Offer of approximately $2.86 (the “Offer Consideration”).

Page 47

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
NOTE ANALYSIS

Notes Analysis - Indicated Value
($ in thousands, except per share)

Note Information
	Per share principal amount of Note	$	1.00
	Interest Rate		10.0	%
	Interest paid		Semi-annually
	Principal payments:
	End of year 1		0.0	%
	End of year 2		0.0	%
	End of year 3		100.0	%
	Security Interest		Subordinate to all of the Company’s existing debt to banks and other lenders and to all other future debt that the Company designates as debt senior to the Notes.

Expected Cash Flows per Share
		Year
		0.5		1.0		1.5		2.0		2.5		3.0
	Interest	$	0.05	$	0.05	$	0.05	$	0.05	$	0.05	$	0.05
	Principal		-		-		-		-		-		1.00
	Total	$	0.05	$	0.05	$	0.05	$	0.05	$	0.05	$	1.05
	Principal balance at period end	$	1.00	$	1.00	$	1.00	$	1.00	$	1.00	$	-

Range of Estimated Present Values
		Assumed Discount Rate
		14.0%		15.0%		16.0%		16.5%		17.0%		18.0%		19.0%
	Estimated per share	$	0.915	$	0.894	$	0.874	$	0.864	$	0.854	$	0.835	$	0.817

Sources of information: Company management

Page 48

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
NOTE ANALYSIS

Notes Analysis - Bond Yields Review

Yields on Speculative Bonds
			Credit Spread
	S&P							3 Yr			Implied Spec
Date	SG Index		BP		%			Govt Bond			3 Yr Bond
9/26/2003		969.6		969.6		9.7	%		2.5	%		12.2	%

YTM of Corporate Bonds with 3 to 5 years to maturity
			YTM Range
Investment	Number of
Rating	Issues		High			Low
AAA		27		5.05	%		2.08	%
AA		8		3.83	%		2.41	%
A		85		6.24	%		2.28	%
BBB		39		5.57	%		2.37	%
BB		4		7.69	%		5.70	%
B		5		15.61	%		6.53	%
CCC		2		14.14	%		13.13	%
CC		0	na			na
C		0	na			na
NR		0	na			na
		170

Sources of information: Yahoo Finance and Standard & Poor’s Credit Indices

Page 49

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS

• The discounted cash flow analysis estimates value based upon a company’s projected future free cash flow discounted at a rate reflecting risks inherent in its business and capital structure. Unlevered free cash flow represents the amount of cash generated and available for principal, interest and dividend payments after providing for ongoing business operations.

• While the discounted cash flow analysis is the most scientific of the methodologies, it is dependent on projections and is further dependent on numerous industry-specific and macroeconomic factors.

• Capitalink performed discounted cash flow analyses based on the projected cash flows for the Company’s core asphalt plant manufacturing business. Capitalink utilized the forecasts provided by Company management, which show a gradual increase in domestic sales and a decline in international sales between 2003 and 2006. Total combined sales for the forecast period fall from $58.3 million to $55.9 million from FY2003 to FY2006. For the forecast period, the Company projects a gradual increase in EBITDA from approximately $3.2 million for FY2003, to approximately $5.6 million for FY2006.

• In order to arrive at a present value, Capitalink utilized discount rates ranging from 16.5% to 18.5%. This was based on an estimated weighted average cost of capital (“WACC”) of 17.5% (based on the Company’s existing debt and an 24.4% estimated cost of equity).

• Capitalink presented a range of terminal values at the end of the forecast period by applying a range of multiples to each of the operations FY2006 projected revenue and EBITDA.

• In addition, Capitalink presented a perpetual growth scenario whereby ranges of growth rates were applied to the operation’s FY2006 free cash flows in order to determine a terminal value, rather than multiples.

• In each of the scenarios noted above, a range of enterprise values was derived for the Company’s core business.

Page 50

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS

• The results of the discounted cash flow analysis under the three terminal value scenarios were as follows:

• Utilizing the revenue terminal scenario (range of 0.35 times to 0.45 times), Capitalink calculated a range of indicated enterprise value from $12.5 million to $16.7 million.

• Utilizing the EBITDA terminal scenario (range of 4.5 times to 5.5 times), Capitalink calculated a range of indicated enterprise values from $15.9 million to $20.4 million.

• Utilizing a perpetual growth scenario (growth rates of 5.5% to 6.5%), Capitalink calculated a range of indicated enterprise values from $16.3 million to $22.4 million.

• The total enterprise values above were then reduced by the Company’s net debt to arrive at an equity value range. The Company’s estimated net debt as of July 31, 2003 was approximately ($1.6) million, which includes approximately $9.9 million in interest bearing debt, $8.5 million in cash, and an estimated $2.9 million from the exercise of in-the-money (“ITM”) options.

• Taking into account the enterprise value ranges in all three terminal value scenarios, the Company’s net debt, common stock equivalents of 10.2 million, and applying a 5% discount to reflect the limited voting power of the Company’s common stock, Capitalink calculated a range of indicated common stock shares prices of between $1.54 and $2.00.

Page 51

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS

DCF Analysis - Indicated Reference Range - Core Business
($ in thousands, except per share)

								Indicated Common Stock
	Selected Multiple Range			Indicated EV Value		Indicated Equity Value (1)		Share Price (2) (3)
LTM Revenue Terminal Multiple		0.35x - 0.45x		$	12,568 - $16,872	$	14,179   $18,483	$	1.32 - $1.72
LTM EBITDA Terminal Multiple		4.5x - 5.5x		$	16,023 - $20,536	$	17,634   $22,147	$	1.64 - $2.06
Perpetual Growth Method		5.50% - 6.50	%	$	16,468 - $22,618	$	18,079   $24,229	$	1.68 - $2.25
Indicated Reference Range				$	15,020 - $20,009	$	16,631 - $21,620	$	1.55 - $2.01

(1) Adjusted for ($1,611) net debt as of July 31, 2003, which includes cash from in the money options/warrants outstanding.

(2) Based upon and assumes 10,208 shares and in the money options/warrants outstanding.

(3) In order to reflect its limited voting power, a 5% discount has been applied to the common shares.

Page 52

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS

DCF Analysis - Estimated Ranges - Core Business
($ in thousands, except per share)

Discount
Rate	Estimated Range of Enterprise Values										Terminal Value as % of Enterprise Values												Estimated Range of Equity Values
Revenue Terminal Value Analysis
		0.350x		0.375x		0.400x		0.425x		0.450x		0.350x			0.375x		0.400x		0.425x		0.450x			0.350x		0.375x		0.400x		0.425x		0.450x
16.5%	$	13,353	$	14,233	$	15,113	$	15,992	$	16,872		92.2	%		92.7	%	93.1	%	93.5	%	93.8	%	$	14,964	$	15,844	$	16,724	$	17,603	$	18,483
17.0%	$	13,152	$	14,020	$	14,889	$	15,757	$	16,625		92.4	%		92.9	%	93.3	%	93.7	%	94.0	%	$	14,763	$	15,631	$	16,500	$	17,368	$	18,236
17.5%	$	12,954	$	13,811	$	14,668	$	15,525	$	16,382		92.6	%		93.1	%	93.5	%	93.8	%	94.2	%	$	14,565	$	15,422	$	16,279	$	17,136	$	17,993
18.0%	$	12,760	$	13,606	$	14,452	$	15,298	$	16,144		92.8	%		93.3	%	93.7	%	94.0	%	94.3	%	$	14,371	$	15,217	$	16,063	$	16,909	$	17,755
18.5%	$	12,568	$	13,404	$	14,239	$	15,074	$	15,909		93.0	%		93.5	%	93.9	%	94.2	%	94.5	%	$	14,179	$	15,015	$	15,850	$	16,685	$	17,520
			Average		$	14,672								Average			93.4	%							Average		$	16,283
EBITDA Terminal Value Analysis
		4.50x		4.75x		5.00x		5.25x		5.50x		4.50x			4.75x		5.00x		5.25x		5.50x			4.50x		4.75x		5.00x		5.25x		5.50x
16.5%	$	16,991	$	17,878	$	18,764	$	19,650	$	20,536		93.9	%		94.2	%	94.5	%	94.7	%	94.9	%	$	18,602	$	19,489	$	20,375	$	21,261	$	22,147
17.0%	$	16,743	$	17,618	$	18,493	$	19,367	$	20,242		94.0	%		94.3	%	94.6	%	94.9	%	95.1	%	$	18,354	$	19,229	$	20,104	$	20,978	$	21,853
17.5%	$	16,499	$	17,362	$	18,226	$	19,089	$	19,953		94.2	%		94.5	%	94.8	%	95.0	%	95.2	%	$	18,110	$	18,973	$	19,837	$	20,700	$	21,564
18.0%	$	16,259	$	17,111	$	17,964	$	18,816	$	19,669		94.4	%		94.7	%	94.9	%	95.1	%	95.3	%	$	17,870	$	18,722	$	19,575	$	20,427	$	21,280
18.5%	$	16,023	$	16,864	$	17,706	$	18,547	$	19,389		94.5	%		94.8	%	95.1	%	95.3	%	95.5	%	$	17,634	$	18,475	$	19,317	$	20,158	$	21,000
			Average		$	18,230								Average			94.7	%							Average		$	19,841
Perpetual Growth Terminal Value Analysis
		5.50%		5.75%		6.0%		6.25%		6.50%		5.50%			5.7%		6.00%		6.25%		6.50%			5.50%		5.75%		6.00%		6.25%		6.50%
16.5%	$	20,447	$	20,951	$	21,480	$	22,035	$	22,618		94.9	%		95.0	%	95.2	%	95.3	%	95.4	%	$	22,058	$	22,562	$	23,091	$	23,646	$	24,229
17.0%	$	19,321	$	19,778	$	20,257	$	20,758	$	21,282		94.8	%		95.0	%	95.1	%	95.2	%	95.3	%	$	20,932	$	21,389	$	21,868	$	22,369	$	22,893
17.5%	$	18,290	$	18,706	$	19,141	$	19,595	$	20,069		94.8	%		94.9	%	95.0	%	95.1	%	95.2	%	$	19,901	$	20,317	$	20,752	$	21,206	$	21,680
18.0%	$	17,342	$	17,723	$	18,119	$	18,532	$	18,963		94.7	%		94.8	%	94.9	%	95.1	%	95.2	%	$	18,953	$	19,334	$	19,730	$	20,143	$	20,574
18.5%	$	16,468	$	16,817	$	17,180	$	17,557	$	17,950		94.7	%		94.8	%	94.9	%	95.0	%	95.1	%	$	18,079	$	18,428	$	18,791	$	19,168	$	19,561
			Average		$	19,255								Average			95.0	%							Average		$	20,866

All Discounted amounts have been calculated utilizing a mid-year convention.

Sources of information: Company financials, projections and management.

Page 53

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS

DCF Analysis - Free Cash Flow Projections - Core Business
($ in thousands)

			Actual					Projected
											FYE Sep 30
			FYE			10 ME (1)		2 ME
			Sep-02			Jul-03		Sep-03			2003		2004			2005		2006
Free Cash Flows
	Revenue
		Domestic Sales	$	41,207		$	40,937	$	7,100		$	48,037	$	48,514		$	50,940	$	53,487
		International Sales		26,278			9,879		420			10,299		2,500			2,500		2,500
				67,485			50,816		7,520			58,336		51,014			53,440		55,987
	Cost of Goods Sold
		Domestic Sales		28,978			28,743		4,979			33,722		34,060			35,782		37,591
		International Sales		21,538			8,627		316			8,943		1,875			1,875		1,875
				50,516			37,370		5,295			42,665		35,935			37,657		39,466
	Gross Profit			16,969			13,446		2,225			15,671		15,079			15,783		16,521
	Operating Expenses			13,226			10,884		1,566			12,450		10,709			10,524		10,880
	EBITDA			3,743			2,562		659			3,221		4,370			5,259		5,641
		Deprec. & Amort		1,382			740		127			867		800			725		725
	EBIT			2,361			1,822		532			2,354		3,570			4,534		4,916
		Income Taxes		826			638		186			824		1,250			1,587		1,721
	Unlevered After-tax Income			1,535			1,184		346			1,530		2,321			2,947		3,195
		Add: Deprec. & Amort		1,382			740		127			867		800			725		725
		Add: Change in Net WC		(665	)		10,623		(2,870	)		7,753		(3,170	)		-		100
		Less: Capital Expenditures		304			84		165			249		660			720		792
	Unlevered Free Cash Flows		$	1,948		$	12,463	$	(2,562	)	$	9,901	$	(710	)	$	2,952	$	3,228

						Projected
			Actual			FYE Sep 30
			FYE
			Sep-02			2003			2004			2005			2006
Growth Analysis
	Revenue
		Domestic Sales	na				16.6	%		1.0	%		5.0	%		5.0	%
		International Sales	na				-60.8	%		-75.7	%		0.0	%		0.0	%
			na				-13.6	%		-12.6	%		4.8	%		4.8	%
	Cost of Goods Sold
		Domestic Sales	na				16.4	%		1.0	%		5.1	%		5.1	%
		International Sales	na				-58.5	%		-79.0	%		0.0	%		0.0	%
			na				-15.5	%		-15.8	%		4.8	%		4.8	%
	Gross Profit		na				-7.6	%		-3.8	%		4.7	%		4.7	%
	Operating Expenses		na				-5.9	%		-14.0	%		-1.7	%		3.4	%
	EBITDA		na				-13.9	%		35.7	%		20.3	%		7.3	%
		Deprec. & Amort	na				-37.3	%		-7.7	%		-9.4	%		0.0	%
	EBIT		na				-0.3	%		51.7	%		27.0	%		8.4	%
		Income Taxes	na				-0.3	%		51.7	%		27.0	%		8.4	%
	Unlevered After-tax Income		na				-0.3	%		51.7	%		27.0	%		8.4	%
		Add: Deprec. & Amort	na				-37.3	%		-7.7	%		-9.4	%		0.0	%
		Add: Change in Net WC	na			na				-140.9	%	na			na
		Less: Capital Expenditures	na				-18.1	%		165.1	%		9.1	%		10.0	%
	Unlevered Free Cash Flows		na				408.4	%		-107.2	%	na				9.4	%
Profitability Analysis
	Gross Margin - Domestic			29.7	%		29.8	%		29.8	%		29.8	%		29.7	%
	Gross Margin - International			18.0	%		13.2	%		25.0	%		25.0	%		25.0	%
	Gross Margin			25.1	%		26.9	%		29.6	%		29.5	%		29.5	%
	EBITDA			5.5	%		5.5	%		8.6	%		9.8	%		10.1	%
	EBIT			3.5	%		4.0	%		7.0	%		8.5	%		8.8	%
	Unlevered After-tax Income			2.3	%		2.6	%		4.5	%		5.5	%		5.7	%

(1) Operating expenses exclude $1.2 million charge related to write-off of overseas business.

Sources of information: Company financials, projections and management.

Page 54

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS

DCF Analysis - Working Capital and Income Tax - Core Business
($ in thousands)

			Actual						Projected
												FYE Sep 30
			FYE			10 ME (1)			2 ME
			Sep-02			Jul-03			Sep-03			2004			2005			2006
Non-Cash Working Capital Assumptions
		AR Days Outstanding		46		na				23			26			25			24
		A/R - % Sales		12.6	%	na				6.2	%		7.2	%		6.9	%		6.5	%
		Days Inventory Outs.		137		na				111			148			141			134
		Inv - % CGS		37.6	%	na				30.5	%		40.4	%		38.6	%		36.8	%
		Prepay - % CGS & Op Exp		3.0	%	na				2.7	%		3.3	%		3.2	%		3.0	%
		AP Days Outstanding		53		na				20			36			35			34
		A/P - % CGS & Op Exp		14.4	%	na				5.6	%		9.9	%		9.5	%		9.3	%
		Acc Exp & Other - % CGS &		21.9	%	na				29.9	%		28.8	%		27.9	%		26.7	%
Non-Cash Net Working Capital
	Accounts Receivable		$	8,512		$	3,411		$	3,637		$	3,667		$	3,667		$	3,667
	Inventory			19,012			12,031			13,031			14,531			14,531			14,531
	Prepayments			1,938			1,396			1,462			1,533			1,533			1,533
	Accounts Payable			9,196			3,126			3,094			4,598			4,598			4,698
	Acc Exp & Other			13,979			18,048			16,502			13,429			13,429			13,429
	Non-Cash Net WC		$	6,287		$	(4,336	)	$	(1,466	)	$	1,704		$	1,704		$	1,604
	Change in Non-Cash Net WC		$	(665	)	$	10,623		$	(2,870	)	$	(3,170	)	$	-		$	100

		Actual						Projected
											FYE Sep 30
		FYE			10 ME (1)			2 ME
		Sep-02			Jul-03			Sep-03			2004			2005			2006
Income Tax Expense and Assumptions
	Statutory Tax Rate		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
	Effective Tax Rate		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
	Current Period Tax	$	826		$	638		$	186		$	1,250		$	1,587		$	1,721
	NOL Usage		-			-			-			-			-			-
	Income Tax Expense	$	826		$	638		$	186		$	1,250		$	1,587		$	1,721
	Ending NOL Balance				$	-		$	-		$	-		$	-		$	-

Sources of information: Company financials, projections and management.

Page 55

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS

DCF Analysis - Cost of Capital, Net Debt & Stock Equivalents - Core Business
($ in thousands, except per share)

Cost of Equity

Riskless (1)
	20 year treasury coupon (Rf)	4.9	%
Risk (2)
	Equity risk premium (EP)	7.0	%
	Industry risk premium (IP)	0.3	%
	Size Premium (SP)	9.2	%
Company Specific
	Business Execution Risk	3.0	%
		24.4	%

Cost of Debt

	Nominal					% of			Weighted
Type of Debt	Rate			Amount		of Debt			Cost of Debt
Senior Secured Credit		4.00	%	$	9,852		100.0	%		4.0	%
				$	9,852		100.0	%		4.0	%

Weighted Average Cost of Capital

										Industry Avg
	Shares Outs.		Stock Price		Market		% of			% of			Nominal			Effective			Cost of			Weighted
	(in thousands)		03-Oct-03		Value		Total Capital			Total Capital (3)			Rate			Tax Rate			Capital			Cost of Capital
Debt					$	9,852		31.7	%		27.0	%		4.0	%		35.0	%		2.6	%		0.8	%
Equity		8,682	$	2.4500		21,271		68.3	%		73.0	%		24.4	%					24.4	%		16.7	%
					$	31,123		100.0	%		100.0	%											17.5	%

Net Debt

		as of
		31-Jul-03
Debt & Other Obligations
	Interest Bearing Debt	$	9,852
	Minority Interests		-
	Preferred Stock		-
			9,852
Less Cash
	Cash on Hand		8,485
	Assumed cash from exercise of options		2,978
	Assumed cash from Other		-
			11,463
Net Debt		$	(1,611	)

Common Stock Equivalents

					as of
					31-Jul-03
Common Stock Equivalents (in thousands)
	Common Stock Outstanding					8,682
	Stock issued re Other					-
						8,682
			Proceeds
	Options in the money:	Common Stock	$	1,658		890
		Class B	$	1,320		636
						1,526
Total Common Stock Equivalents						10,208

(1) As reported by the Federal Reserve Board on a weekly-average basis for the week ended September 22, 2003.

(2) Sourced from the Ibbotson SBBI Valuation Edition 2003 Yearbook.

(3) Based on median debt to total capitalization of SIC code 353 (Construction, Mining, and Materials Handling Machinery and Equipment).

Sources of information: Company financials, projections & management, Ibbotson 2003 SBBI and Federal Reserve Board.

Page 56

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

• The selected comparable company analysis compares the trading multiples of the Company with those of other publicly traded companies that are similar with respect to business and revenue model, operating sector, size and target customer base.

• Capitalink located six companies that it deemed comparable to the Company with respect to their industry sector and operating model (the “Comparable Companies”). Only one of the Comparable Companies manufactures road-building equipment as its primary activity. However, all of the Comparable Companies are involved in the manufacture of heavy equipment, used in the road construction, mining, marine sector and are classified under the SIC code 353 (construction, mining, and materials handling machinery and equipment).

• Based on size (in terms of enterprise value and revenues), Gencor is in the lower range of the Comparable Companies. As of October 3, 2003, the enterprise values for the Comparable Companies ranged from approximately $10.7 million to approximately $1.9 billion and revenue ranged from approximately $10.9 million to approximately $3.5 billion. In comparison, Gencor had an enterprise value and LTM revenue of approximately $20.6 million and $64.7 million, respectively.

• Multiples utilizing market value, and enterprise value were used in the analyses. The differences between the two are as follows:

• Market value equals price per share times number of shares outstanding,

• Enterprise value equals market value plus interest bearing debt, preferred stock and minority interest, less cash and equivalents.

• Market values were used to calculate multiples of earnings per share (“EPS”), common equity, and net tangible common equity, while enterprise values were used to calculate multiples of LTM, current financial year (“CFY”), and next financial year (“NFY”) revenue, and EBITDA, and total assets.

Page 57

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

• For comparison purposes, all operating profits including EBITDA were normalized to exclude unusual and extra-ordinary expenses and income. Gencor earnings generated by its investment in Carbontronics were also excluded in order to derive an indicated value for the core business operations.

• The Comparable Company analysis generated a wide range of multiples:

• The mean enterprise value to LTM, CFY and NFY revenue was 0.72, 0.67 and 0.63 times, respectively, for the Comparable Companies and 0.32, 0.37, and 0.40 times, respectively, for the Company.

• The mean enterprise value to LTM, CFY and NFY EBITDA was 10.3, 11.0 and 8.1 times, respectively, for the Comparable Companies and 6.3, 7.5, and 4.7 times, respectively, for the Company.

• Capitalink noted that the EBITDA margin for the Company was slightly below the average of the Comparable Companies (5.1% compared with 6.8%). In addition, the average change in revenues for the latest financial year for the Comparable Companies was an increase of 15.2%, compared with a fall of 5.1% for the Company.

• Capitalink expects Gencor’s valuation multiples to be below the Comparable Company’s due to the smaller size of the Company, revenue concentration, falling historical revenue growth and limited future growth.

• Capitalink selected an appropriate multiple range for the Company by examining the range provided by the Comparable Companies and taking into account the Company specific factors as previously discussed. Capitalink then applied this multiple range to Gencor’s LTM, CFY and NFY revenue and EBITDA as follows:

• Between 0.35 times and 0.45 times LTM revenue.

• Between 0.35 times and 0.45 times CFY revenue.

• Between 0.30 times and 0.40 times NFY revenue.

• Between 5.0 times and 6.0 times LTM EBITDA.

• Between 4.5 times and 5.5 times CFY EBITDA.

Page 58

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

• Between 4.0 times and 4.5 times NFY EBITDA.

• Based on the selected multiple ranges, Capitalink calculated a range of enterprise values between $16.1 million and $20.2 million for the core business. After deducting net debt of $(1.6) million, dividing by approximately 10.2 million shares outstanding (including ITM options), and applying a 5% discount for the limited voting power of the common stock, Capitalink calculated a range of indicated common stock share prices of between $1.65 and $2.03.

• An analysis of publicly traded comparable companies is not mathematical; rather it involves complex consideration and judgments concerning differences in financial and operating characteristics of the Comparable Companies and other factors that could affect the public trading of the Comparable Companies.

Page 59

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Comparable Company Analysis - Indicated Reference Range - Core Business
($ in thousands, except per share)

				Selected Multiple Range
										Indicated Common Stock
		Statistic		Low - High		Indicated EV Value		Indicated Equity Value (1)		Share Price (2) (3)
Total Enterprise Value (EV) Multiple
	LTM 7/31/03 Revenue	$	58,950		0.35x - 0.45x	$	20,633 - $26,528	$	22,244 - $28,139	$	2.07 - $2.62
	CFY Revenue	$	55,843		0.35x - 0.45x	$	19,545 - $25,129	$	21,156 - $26,740	$	1.97 - $2.49
	NFY Revenue	$	51,014		0.30x - 0.40x	$	15,304 - $20,406	$	16,915 - $22,017	$	1.57 - $2.05
	LTM 7/31/03 EBITDA	$	2,880		5.0x   -   6.0x	$	14,400 - $17,280	$	16,011 - $18,891	$	1.49 - $1.76
	CFY EBITDA	$	2,758		4.5x   -   5.5x	$	12,411 - $15,169	$	14,022 - $16,780	$	1.30 - $1.56
	NFY EBITDA	$	4,370		4.0x   -   5.0x	$	17,480 - $21,850	$	19,091 - $23,461	$	1.78 - $2.18
Indicated Reference Range						$	16,629 - $21,060	$	18,240 - $22,671	$	1.70 - $2.11

(1) Adjusted for ($1,611) net debt as of July 31, 2003, which includes cash from in the money options/warrants outstanding.

(2) Based upon and assumes 10,208 shares and in the money options/warrants outstanding.

(3) In order to reflect its limited voting power, a 5% discount has been applied to the common stock.

Page 60

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Comparable Company Analysis - Valuation Multiples - Core Business
($ in thousands, except per share data)

											MV as a Multiple of
				% Below/Above			Market		Enterprise
		Stock Price		52-week			Value		Value		EPS			Common			Net Tang
Company	Ticker	3-Oct-03		High-Low			MV		EV (1)		LTM			Equity			Com Eq
Terex Corp.	TEX	$	19.680		16.3% - 107.2	%	$	950,544	$	1,996,844		109.3	x		1.2	x		5.3	x
Manitowoc Company, Inc.	MTW		22.700		35.5% - 35.9	%		599,666		1,236,004		22.7			2.0		na
Joy Global Inc.	JOYG		17.420		-6.2% - 127.7	%		853,563		970,021		102.5			2.3			4.7
Astec Industries, Inc.	ASTE		10.330		18.8% - 98.3	%		203,491		280,372	na				1.1			1.3
Gehl Company	GEHL		11.370		7.0% - 51.4	%		60,886		122,016		17.2			0.6			0.7
Art’s Way Manufacturing	ARTW		4.871		7.0% - 80.4	%		9,440		10,687		9.6			2.7			2.7
				High			$	950,544	$	1,996,844		109.3	x		2.7	x		5.3	x
				Mean				446,265		769,324		52.3			1.6			3.0
				Median				401,578		625,196		22.7			1.6			2.7
				Low				9,440		10,687		9.6			0.6			0.7
Gencor Industries, Inc.	GNCI		2.450		29.0% - 226.7	%	$	21,271	$	20,617	na				1.7	x		1.7	x

[Additional columns below]

[Continued from above table, first column(s) repeated]

	EV as a Multiple of
	Revenue (2)												EBITDA (2)												5 Yr EPS
										EBIT												Total			Growth
Company	LTM			Est CFY			Est NFY			LTM			LTM			Est CFY			Est NFY			Assets			Proj (2)
Terex Corp.		0.57	x		0.58	x		0.56	x		23.7	x		14.3	x		7.7	x		6.7	x		0.6	x		12.0	%
Manitowoc Company, Inc.		0.77			0.78			0.75			12.4			8.2			9.2			8.0			0.7			10.0	%
Joy Global Inc.		0.87			0.84			0.77			24.0			10.4			10.3			7.7			0.7			8.0	%
Astec Industries, Inc.		0.60			0.63			0.58		na			na				18.9			10.3			0.8			7.0	%
Gehl Company		0.52			0.52			0.50			18.4			10.7			8.7			7.6			0.5			12.0	%
Art’s Way Manufacturing		0.98		na			na				9.8			7.8		na			na				1.4		na
		0.98	x		0.84	x		0.77	x		24.0	x		14.3	x		18.9	x		10.3	x		1.4	x		12.0	%
		0.72			0.67			0.63			17.7			10.3			11.0			8.1			0.8			9.8	%
		0.69			0.63			0.58			18.4			10.4			9.2			7.7			0.7			10.0	%
		0.52			0.52			0.50			9.8			7.8			7.7			6.7			0.5			7.0	%
Gencor Industries, Inc.		0.32	x		0.37	x		0.40	x		8.7	x		6.3	x		7.5	x		4.7	x		0.4	x	na

(1) Enterprise Value equals Market Value plus total debt, preferred stock, and minority interests, less cash.

(2) Sources of estimates: Multex Estimates and other various securities analysts��� estimates and reports.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 61

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Comparable Company Analysis - Margin and Other Analyses - Core Business
($ in thousands)

		LTM (1)
				as Percentage of Revenue																		Return on
																												Accts				Days
				Gross						Operating									Net			Average			Average			Receivable		Inventory		Sales
Company		Revenue		Margin			S G & A			Margin			EBITDA			EBIT			Income			Assets			Common Eq			Turnover		Turnover		Outstanding
Terex Corp.		$	3,484,500		12.0	%		9.7	%		2.3	%		4.0	%		2.4	%		0.4	%		0.4	%		1.8	%		6.1x		3.0x		59.7
Manitowoc Company, Inc.			1,608,228		21.4	%		15.2	%		6.1	%		9.4	%		6.2	%		1.7	%		1.6	%		8.9	%		6.5		4.7		56.2
Joy Global Inc.			1,111,106		23.8	%		20.3	%		3.5	%		8.4	%		3.6	%		0.8	%		0.7	%		2.4	%		6.3		2.0		58.3
Astec Industries, Inc.			463,446		15.1	%		15.6	%		-2.2	%		1.5	%		-1.9	%		-1.9	%		-2.2	%		-4.5	%		8.7		3.4		42.0
Gehl Company			232,890		20.6	%		17.7	%		2.9	%		4.9	%		2.8	%		1.5	%		1.5	%		3.6	%		2.2		5.0		169.0
Art’s Way Manufacturing			10,945		27.3	%		17.1	%		10.2	%		12.4	%		10.0	%		8.8	%		14.0	%		29.0	%		12.3		2.1		29.6
	High	$	3,484,500		27.3	%		20.3	%		10.2	%		12.4	%		10.0	%		8.8	%		14.0	%		29.0	%		12.3x		5.0x		169.0
	Mean		1,151,853		20.0	%		16.0	%		3.8	%		6.8	%		3.9	%		1.9	%		2.7	%		6.9	%		7.0		3.4		69.1
	Median		787,276		21.0	%		16.4	%		3.2	%		6.7	%		3.2	%		1.2	%		1.1	%		3.0	%		6.4		3.2		57.3
	Low		10,945		12.0	%		9.7	%		-2.2	%		1.5	%		-1.9	%		-1.9	%		-2.2	%		-4.5	%		2.2		2.0		29.6
Gencor Industries, Inc.		$	64,651		25.2	%		18.7	%		3.8	%		5.1	%		3.7	%		-0.1	%		-0.2	%		-1.1	%		10.0x		2.9x		36.4

[Additional columns below]

[Continued from above table, first column(s) repeated]

		as of Latest Available Filing
				Total Debt			Total Debt		Latest FY
		Current		to Total			to		Revenue
Company		Ratio		Capitalization			EBITDA		Growth
Terex Corp.			2.0		65.3	%		10.5x		54.3	%
Manitowoc Company, Inc.			1.4		68.4	%		4.4		34.4	%
Joy Global Inc.			1.9		37.6	%		2.4		0.2	%
Astec Industries, Inc.			2.5		31.5	%		12.7		5.4	%
Gehl Company			2.9		40.0	%		5.8		-3.3	%
Art’s Way Manufacturing			3.1		38.8	%		1.6		0.1	%
	High		3.1		68.4	%		12.7x		54.3	%
	Mean		2.3		46.9	%		6.2		15.2	%
	Median		2.2		39.4	%		5.1		2.8	%
	Low		1.4		31.5	%		1.6		-3.3	%
Gencor Industries, Inc.			1.2		54.6	%		4.7x		-5.1	%

(1) May exclude special items, such as extraordinary and non-recurring expenses. See individual company overviews for details of exclusions, if any.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 62

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Comparable Company Analysis - Income Statement Overview - Core Business
($ in thousands, except per share data)

		Revenue				EBITDA (1)				EBIT (1)
				Latest				Latest					Latest
Company		LTM		10-K		LTM		10-K		LTM			10-K
Terex Corp.		$	3,484,500	$	2,797,400	$	139,400	$	104,600	$	84,300		$	64,400
Manitowoc Company, Inc.			1,608,228		1,406,577		151,386		165,521		100,059			126,352
Joy Global Inc.			1,111,106		1,150,847		93,217		43,994		40,380			(15,143	)
Astec Industries, Inc.			463,446		480,589		6,961		20,205		(8,976	)		4,993
Gehl Company			232,890		232,565		11,446		9,439		6,617			4,626
Art’s Way Manufacturing			10,945		10,899		1,362		995		1,092			743
	High	$	3,484,500	$	2,797,400	$	151,386	$	165,521	$	100,059		$	126,352
	Mean		1,151,853		1,013,146		67,295		57,459		37,245			30,995
	Median		787,276		815,718		52,332		32,100		23,499			4,810
	Low		10,945		10,899		1,362		995		(8,976	)		(15,143	)
Gencor Industries, Inc.		$	64,651	$	67,485	$	3,295	$	3,647	$	2,381		$	2,269

[Additional columns below]

[Continued from above table, first column(s) repeated]

		Net Income (1)						EPS (1)
														Latest	Latest
					Latest						Latest			Available	Available
Company		LTM			10-K			LTM			10-K			10-Q	10-K
Terex Corp.		$	13,728		$	(14,572	)	$	0.18		$	(0.34	)	30-Jun-03	31-Dec-02
Manitowoc Company, Inc.			26,587			47,260			1.00			1.88		30-Jun-03	31-Dec-02
Joy Global Inc.			8,715			(30,387	)		0.17			(0.61	)	2-Aug-03	2-Nov-02
Astec Industries, Inc.			(8,676	)		(1,429	)		(0.44	)		(0.07	)	30-Jun-03	31-Dec-02
Gehl Company			3,555			1,998			0.66			0.37		29-Jun-03	31-Dec-02
Art’s Way Manufacturing			962			569			0.51			0.31		31-May-03	30-Nov-02
	High	$	26,587		$	47,260		$	1.00		$	1.88
	Mean		7,479			573			0.35			0.26
	Median		6,135			(430	)		0.35			0.12
	Low		(8,676	)		(30,387	)		(0.44	)		(0.61	)
Gencor Industries, Inc.		$	(95	)	$	177		$	(0.01	)	$	0.02		30-Jun-03	30-Sep-02

(1) May exclude special items, such as extraordinary and non-recurring expenses. See individual company overviews for details of exclusions, if any.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 63

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Comparable Company Analysis - Balance Sheet Overview - Core Business
($ in thousands)

		As of Latest Available Filing
		Cash &		Accounts				Total Current				Intangibles,
Company		Mrkt Sec		Receivables		Inventory		Assets		PPE, net		net
Terex Corp.		$	420,400	$	561,100	$	955,200	$	2,174,000	$	313,900	$	601,100
Manitowoc Company, Inc.			26,574		269,327		282,419		731,244		314,293		520,771
Joy Global Inc.			103,474		183,687		432,209		755,502		225,420		184,401
Astec Industries, Inc.			11,280		57,609		113,740		205,833		115,357		36,093
Gehl Company			4,742		118,098		36,550		176,162		45,056		11,748
Art’s Way Manufacturing			980		1,183		4,155		6,389		835		-
	High	$	420,400	$	561,100	$	955,200	$	2,174,000	$	314,293	$	601,100
	Mean		94,575		198,501		304,046		674,855		169,144		225,686
	Median		18,927		150,893		198,080		468,539		170,389		110,247
	Low		980		1,183		4,155		6,389		835		-
Gencor Industries, Inc.		$	16,113	$	4,390	$	14,156	$	35,774	$	15,131	$	364

[Additional columns below]

[Continued from above table, first column(s) repeated]

		As of Latest Available Filing
													Latest
		Total		Total Current		Total		Total		Net Tangible			Available
Company		Assets		Liabilities		Debt		Common Eq		Common Eq			Filing
Terex Corp.		$	3,570,700	$	1,093,600	$	1,466,700	$	779,000	$	177,900		30-Jun-03
Manitowoc Company, Inc.			1,651,982		534,547		662,912		305,560		(215,211	)	30-Jun-03
Joy Global Inc.			1,302,705		404,392		219,932		365,114		180,713		2-Aug-03
Astec Industries, Inc.			363,530		82,381		88,161		191,905		155,812		30-Jun-03
Gehl Company			248,003		60,716		65,872		98,679		86,931		29-Jun-03
Art’s Way Manufacturing			7,866		2,092		2,227		3,509		3,509		31-May-03
	High	$	3,570,700	$	1,093,600	$	1,466,700	$	779,000	$	180,713
	Mean		1,190,798		362,955		417,634		290,628		64,942
	Median		833,118		243,387		154,047		248,733		121,372
	Low		7,866		2,092		2,227		3,509		(215,211	)
Gencor Industries, Inc.		$	55,561	$	29,379	$	15,459	$	12,853	$	12,489		30-Jun-03

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 64

\

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Terex Corp. Overview ($ in thousands, except per share)

Company Information

Name	Terex Corp.	Address	500 Post Road East, Suite 320
Symbol	TEX	City, State Zip	Westport, CT 06880
Latest Fiscal YE	31-Dec-02	Telephone	(203) 222-7170
Latest Rprt Per	30-Jun-03	Website	http://www.terex.com/

Market Information

As of Date		3-Oct-03		Market Cap	$	950,544
	Exchange	NYSE		Total Invested Capital (TIC)	$	2,417,244
	Stock Price	$	19.68	Enterprise Value (EV)	$	1,996,844
	52 Week High	$	23.50
	52 Week Low	$	9.50	Insider Ownership		9.00	%
	Avg. Daily Volume (000’s)		282	Institutional
	Beta		1.13	% Owned		84.00	%
	Shares Outstanding (000’s)		48,300	Number of Institutions

Valuation Analysis

		Multiple of
		Market Cap		TIC		EV
Latest Twelve Months
	Revenue		0.27x		0.69x		0.57x
	EBIT		11.3x		28.7x		23.7x
	EBITDA		6.8x		17.3x		14.3x
	Normalized Net Income		69.2x		176.1x		145.5x
	Basic Normalized EPS		109.3x	na		na
Projected
	Dec-03 Mean Revenue		0.28x		0.71x		0.58x
	Dec-04 Mean Revenue		0.27x		0.68x		0.56x
	Dec-03 Mean EBITDA		3.7x		9.4x		7.7x
	Dec-04 Mean EBITDA		3.2x		8.1x		6.7x
	Dec-03 Mean EPS		14.3x	na		na
	Dec-04 Mean EPS		9.9x	na		na
Most Recent Filing
	Assets		0.3x		0.7x		0.6x
	Common Equity		1.2x	na		na
	Tangible Common Equity		5.3x	na		na

Mean Consensus Estimates

Year Ending	# Ests		Revenue		EBITDA		EPS
December-03		6	$	3,420,800	$	257,900	$	1.38
December-04		5	$	3,572,700	$	297,600	$	1.98
LT Growth		4	na		na			12.00	%

Income and Cashflow Statement Data

							Six Months Ended						Fiscal Years Ended
				LTM
				Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Revenue				$	3,484,500		$	1,886,700		$	1,199,600		$	2,797,400		$	1,812,500
	Cost of Revenue				3,065,700			1,618,400			993,400			2,440,700			1,540,100
			Gross Profit		418,800			268,300			206,200			356,700			272,400
	Selling, General & Administrative				339,600			177,600			126,100			288,100			168,200
	Other Operating				-			-			-			-			-
			Operating Income		79,200			90,700			80,100			68,600			104,200
	Interest Income / (Expense), net				(92,500	)		(48,200	)		(41,100	)		(85,400	)		(79,000	)
	Other Income / (Expense), net				5,100			(2,700	)		(12,000	)		(4,200	)		3,200
			Pre-tax Income		(8,200	)		39,800			27,000			(21,000	)		28,400
	Taxes				(21,928	)		(6,800	)		8,700			(6,428	)		9,382
			After-tax Income		13,728			46,600			18,300			(14,572	)		19,018
	Minority Interest				-			-			-			-			-
	Equity in Affiliates				-			-			-			-			-
			Normalized Net Income		13,728			46,600			18,300			(14,572	)		19,018
	Preferred Dividends				-			-			-			-			-
		Normalized Net Income to Common		$	13,728		$	46,600		$	18,300		$	(14,572	)	$	19,018
			Normalized EBIT	$	84,300		$	88,000		$	68,100		$	64,400		$	107,400
Depreciation & Amortization				$	55,100		$	33,400		$	18,500		$	40,200		$	36,500
			Normalized EBITDA	$	139,400		$	121,400		$	86,600		$	104,600		$	143,900
			CAPEX	$	33,200		$	14,100		$	10,100		$	29,200		$	13,500
			EBITDA - CAPEX	$	106,200		$	107,300		$	76,500		$	75,400		$	130,400
GAAP Operating Cash Flow				$	246,100		$	184,400		$	8,600		$	70,300		$	(5,500	)
Basic Reported Weighted Avg Shares Out (000’s)								48,000			40,400			43,200			28,100
			Basic Normalized EPS	$	0.18		$	0.97		$	0.45		$	(0.34	)	$	0.68
			Basic Reported EPS	$	(1.31	)	$	(0.76	)	$	(2.52	)	$	(3.07	)	$	0.46
Diluted Reported Weighted Avg Shares Out (000’s)								48,000			41,200			43,200			28,900
Diluted Normalized EPS				$	0.19		$	0.97		$	0.44		$	(0.34	)	$	0.66
			Diluted Reported EPS	$	(1.35	)	$	(0.76	)	$	(2.48	)	$	(3.07	)	$	0.44
Normalized Reconciliation
	Restructuring/Goodwill Impairment			$	(51,300	)	$	(51,300	)	$	-		$	-		$	-
	Other Unusual (Expense) Gain Items				(38,000	)		(33,200	)		-			(4,800	)		(3,800	)
	Tax Shelter (Charge) on Unusual Items				1,872			-			-			1,872			1,482
	Unusual (Exp) Gain Items, net of Taxes				(87,428	)		(84,500	)		-			(2,928	)		(2,318	)
	Accounting Changes, net of Taxes				-			-			(113,400	)		(113,400	)		-
	Discontinued Operations, net of Taxes				8,200			1,300			(6,900	)		-			-
	Extraordinary Items, net of Taxes				(1,600	)		-			-			(1,600	)		(3,900	)
	Total Reconciling Items, net of Taxes			$	(80,828	)	$	(83,200	)	$	(120,300	)	$	(117,928	)	$	(6,218	)
		Reported Income Tax (Benefit)		$	(23,800	)	$	(6,800	)	$	8,700		$	(8,300	)	$	7,900
		Reported Net Income (Loss)		$	(67,100	)	$	(36,600	)	$	(102,000	)	$	(132,500	)	$	12,800
Revenue Breakdown
	Road Construction Equipment			$	881,600		$	392,600		$	356,200		$	845,200		$	631,700
	Other Heavy Construction				2,271,100			1,211,800			865,700			1,925,000			1,231,600
	Other				331,800			282,300			(22,300	)		27,200			(50,800	)
				$	3,484,500		$	1,886,700		$	1,199,600		$	2,797,400		$	1,812,500
	Road Construction Equipment				25.3	%		20.8	%		29.7	%		30.2	%		34.9	%
	Other Heavy Construction				65.2	%		64.2	%		72.2	%		68.8	%		68.0	%
	Other				9.5	%		15.0	%		-1.9	%		1.0	%		-2.8	%

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 65

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Terex Corp. Overview (continued) ($ in thousands, except per share)

Balance Sheet Data

			Jun-03			Dec-02			Dec-01
	Cash & Mkt Securities		$	420,400		$	352,200		$	250,400
	Accounts Receivable			561,100			578,600			351,100
	Inventory			955,200			1,106,300			704,800
	Other Current Assets			237,300			184,000			76,700
		Total Current Assets		2,174,000			2,221,100			1,383,000
	PPE, net			313,900			309,400			173,900
	Intangibles, net			601,100			622,900			620,100
	Deferred Income Taxes		na				153,500			75,400
	Other Assets			481,700			318,800			134,600
		Total Assets	$	3,570,700		$	3,625,700		$	2,387,000
	Accounts Payable		$	577,600		$	542,900		$	291,000
	Accrued Expenses			165,100			160,000			100,100
	Deferred Revenues			-			-			-
	Short Term Debt			69,700			74,100			34,700
	Short Term Capital Leases			-			-			-
	Other Current Liabilities			281,200			329,200			201,300
		Total Current Liabilities		1,093,600			1,106,200			627,100
	Other LT Liabilities			301,100			263,200			143,800
	Long Term Debt			1,397,000			1,487,100			1,020,700
	Long Term Capital Leases			-			-			-
	Minority Interests			-			-			-
	Pref Stock (Liq Value)			-			-			-
					��
		Total Liabilities & Pref Stock		2,791,700			2,856,500			1,791,600
	Common Equity			779,000			769,200			595,400
		Total Liabilities & Equity	$	3,570,700		$	3,625,700		$	2,387,000
	Common Shares Outstanding (000’s)			48,200			47,400			36,400
	Cash Value per share		$	8.72		$	7.43		$	6.88
	Common Book Value per share		$	16.16		$	16.23		$	16.36
	Common Tangible Book Value per share		$	3.69		$	3.09		$	(0.68	)
	Total Debt		$	1,466,700		$	1,561,200		$	1,055,400
	Net Debt		$	1,046,300		$	1,209,000		$	805,000
	Total Capitalization		$	2,245,700		$	2,330,400		$	1,650,800
Balance Sheet Analysis
Effectiveness and Efficiency
	A/R Turnover			6.1x			6.0x			5.2x
	Inventory Turnover			3.0x			2.7x			2.2x
	Asset Turnover			1.0x			0.9x			0.8x
	Days Sales Outstanding			59.7			60.7			70.7
	Days Inventory Outstanding			122.7			135.4			167.0
	Days Payable Outstanding			60.1			55.8			62.2
	Normalized Return on Avg Assets			0.4	%		-0.5	%		na
	Normalized Return on Avg Common Equity			1.8	%		-2.1	%		na
Financial Strength
	Current Ratio			2.0			2.0			2.2
	Quick Ratio			1.1			1.0			1.1
	Total Debt/Total Capitalization			65.3	%		67.0	%		63.9	%
	Total Debt/TIC			60.7	%		64.6	%		43.7	%
	Total Debt/EBITDA			10.5x			14.9x			7.3x
	Total Debt/EBITDA-CAPEX			13.8x			20.7x			8.1x
	EBITDA/Interest Expense			1.5x			1.2x			1.8x
	EBITDA-CAPEX/Interest Expense			1.1x			0.9x			1.7x

Income and Cashflow Analysis

					Six Months Ended						Fiscal Years Ended
		LTM
		Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Profitability & Cost Ratios (as % of Revenue)
	Gross Margin		12.0	%		14.2	%		17.2	%		12.8	%		15.0	%
	S,G & A		9.7	%		9.4	%		10.5	%		10.3	%		9.3	%
	Operating Income		2.3	%		4.8	%		6.7	%		2.5	%		5.7	%
	Pre-Tax		-0.2	%		2.1	%		2.3	%		-0.8	%		1.6	%
	EBIT		2.4	%		4.7	%		5.7	%		2.3	%		5.9	%
	EBITDA		4.0	%		6.4	%		7.2	%		3.7	%		7.9	%
	Normalized Net Income to Common		0.4	%		2.5	%		1.5	%		-0.5	%		1.0	%
	Reported Net Income		-1.9	%		-1.9	%		-8.5	%		-4.7	%		0.7	%
	CAPEX		1.0	%		0.7	%		0.8	%		1.0	%		0.7	%
Period Growth Rates
	Revenue					57.3	%					54.3	%
	EBIT					29.2	%					-40.0	%
	EBITDA					40.2	%					-27.3	%

Notes

• Unusual expenses include amortization of debt issuance costs (removed from calculation of EBITDA)

• Unrealized losses resulted from extraordinary loss on retirement of debt and changes in accounting principles

• Road construction equipment revenue includes mining revenue (as no breakout available for 6 months)

• Road construction revenue for 2002 and 2001 year is $562.4 m and $365.5 m, respectively.

• Normalization for 6 months 2003 include $51.3m goodwill impairment and $30.6 m writeoff on inventory, mostly related to the roadbuilding group.

• Terex announces roadbuilding revenue down by 25% in the June quarter.

Other Analysis

Company Description

Terex Corporation is a manufacturer of a range of equipment primarily for the construction, infrastructure and surface mining industries. The Company operates in five business segments: Terex Construction, Terex Cranes, Terex Roadbuilding, Utility Products and Other, Terex Aerial Work Platforms and Terex Mining. The Company’s products are manufactured at plants in the United States, Canada, Europe, Australia, Asia and South America, and are sold primarily through a worldwide distribution network serving the global construction, infrastructure and surface mining markets.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 66

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Manitowoc Company, Inc. Overview ($ in thousands, except per share)

Company Information

Name	Manitowoc Company, Inc.	Address	2400 S. 44 Street
Symbol	MTW	City, State Zip	Manitowoc, WI 54221
Latest Fiscal YE	31-Dec-02	Telephone	(920) 684-4410
Latest Rprt Per	30-Jun-03	Website	http://www.manitowoc.com/

Market Information

As of Date		3-Oct-03		Market Cap	$	599,666
	Exchange	NYSE		Total Invested Capital (TIC)	$	1,262,578
	Stock Price	$	22.70	Enterprise Value (EV)	$	1,236,004
	52 Week High	$	35.20
	52 Week Low	$	16.70	Insider Ownership		17.00	%
	Avg. Daily Volume (000’s)		149	Institutional
	Beta		1.14	% Owned		86.00	%
	Shares Outstanding (000’s)		26,417	Number of Institutions		308

Valuation Analysis

		Multiple of
		Market Cap		TIC		EV
Latest Twelve Months
	Revenue		0.37x		0.79x		0.77x
	EBIT		5.99x		12.62x		12.35x
	EBITDA		3.96x		8.34x		8.16x
	Normalized Net Income		22.55x		47.49x		46.49x
	Basic Normalized EPS		22.70x	na		na
Projected
	Dec-03 Mean Revenue		0.38x		0.80x		0.78x
	Dec-04 Mean Revenue		0.36x		0.76x		0.75x
	Dec-03 Mean EBITDA		4.46x		9.39x		9.20x
	Dec-04 Mean EBITDA		3.90x		8.22x		8.05x
	Dec-03 Mean EPS		28.38x	na		na
	Dec-04 Mean EPS		17.13x	na		na
Most Recent Filing
	Assets		0.36x		0.76x		0.75x
	Common Equity		1.96x	na		na
	Tangible Common Equity	na		na		na

Mean Consensus Estimates

Year Ending	# Ests		Revenue		EBITDA		EPS
December-03		2	$	1,585,200	$	134,400	$	0.80
December-04		2	$	1,655,000	$	153,600	$	1.33
LT Growth		1	na		na			10.00	%

Income and Cashflow Statement Data

						Six Months Ended						Fiscal Years Ended
			LTM
			Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Revenue			$	1,608,228		$	812,951		$	611,300		$	1,406,577		$	1,046,558
	Cost of Revenue			1,263,477			638,459			455,201			1,080,219			770,194
		Gross Profit		344,751			174,492			156,099			326,358			276,364
	Selling, General & Administrative			243,920			131,351			87,393			199,962			147,140
	Other Operating			2,387			1,438			1,052			2,001			11,094
		Operating Income		98,444			41,703			67,654			124,395			118,130
	Interest Income / (Expense), net			(59,967	)		(29,960	)		(21,956	)		(51,963	)		(37,408	)
	Other Income / (Expense), net			1,615			95			437			1,957			(1,247	)
		Pre-tax Income		40,092			11,838			46,135			74,389			79,475
	Taxes			13,505			4,368			17,992			27,129			30,734
		After-tax Income		26,587			7,470			28,143			47,260			48,741
	Minority Interest			-			-			-			-			-
	Equity in Affiliates			-			-			-			-			-
		Normalized Net Income		26,587			7,470			28,143			47,260			48,741
	Preferred Dividends			-			-			-			-			-
		Normalized Net Income to Common	$	26,587		$	7,470		$	28,143		$	47,260		$	48,741
		Normalized EBIT	$	100,059		$	41,798		$	68,091		$	126,352		$	116,883
Depreciation & Amortization			$	51,327		$	26,684		$	14,526		$	39,169		$	34,306
		Normalized EBITDA	$	151,386		$	68,482		$	82,617		$	165,521		$	151,189
		CAPEX	$	31,354		$	11,145		$	12,787		$	32,996		$	29,104
		EBITDA - CAPEX	$	120,032		$	57,337		$	69,830		$	132,525		$	122,085
GAAP Operating Cash Flow			$	14,033		$	23,533		$	5,857		$	(3,643	)	$	410
Basic Reported Weighted Avg Shares Out (000’s)							26,543			24,302			25,192			24,270
		Basic Normalized EPS	$	1.00		$	0.28		$	1.16		$	1.88		$	2.01
		Basic Reported EPS	$	(0.32	)	$	0.07		$	(0.42	)	$	(0.81	)	$	1.88
Diluted Reported Weighted Avg Shares Out (000’s)							26,603			24,835			25,782			24,548
Diluted Normalized EPS			$	0.98		$	0.28		$	1.13		$	1.83		$	1.99
		Diluted Reported EPS	$	(0.32	)	$	0.07		$	(0.41	)	$	(0.80	)	$	1.86
Normalized Reconciliation
	Restructuring/Goodwill Impairment		$	(9,078	)	$	(9,078	)	$	-		$	-		$	-
	Other Unusual (Expense) Gain Items			(7,709	)		-			(3,900	)		(11,609	)		-
	Tax Shelter (Charge) on Unusual Items			6,547			3,540			1,521			4,528			-
	Unusual (Exp) Gain Items, net of Taxes			(10,240	)		(5,538	)		(2,379	)		(7,081	)		-
	Accounting Changes, net of Taxes			-			-			(36,800	)		(36,800	)
	Discontinued Operations, net of Taxes			(24,872	)		(84	)		907			(23,881	)		131
	Extraordinary Items, net of Taxes			-			-			-			-			(3,324	)
	Total Reconciling Items, net of Taxes		$	(35,112	)	$	(5,622	)	$	(38,272	)	$	(67,762	)	$	(3,193	)
Reported Income Tax (Benefit)			$	6,958		$	828		$	16,471		$	22,601		$	30,734
Reported Net Income (Loss)			$	(8,525	)	$	1,848		$	(10,129	)	$	(20,502	)	$	45,548
Revenue Breakdown
	Road Construction Equipment		$	-		$	-		$	-		$	-		$	-
	Other Heavy Construction			1,608,228			812,951			611,300			1,406,577			1,046,558
	Other			-			-			-			-			-
			$	1,608,228		$	812,951		$	611,300		$	1,406,577		$	1,046,558
	Road Construction Equipment			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Other Heavy Construction			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Other			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 67

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Manitowoc Company, Inc. Overview (continued) ($ in thousands, except per share)

Balance Sheet Data

			Jun-03			Dec-02			Dec-01
	Cash & Mkt Securities		$	26,574		$	30,406		$	25,732
	Accounts Receivable			269,327			226,091			141,211
	Inventory			282,419			255,218			123,056
	Other Current Assets			152,924			135,449			41,091
		Total Current Assets		731,244			647,164			331,090
	PPE, net			314,293			319,301			175,384
	Intangibles, net			520,771			507,637			507,739
	Deferred Income Taxes			19,637			19,662			-
	Other Assets			66,037			83,359			66,599
		Total Assets	$	1,651,982		$	1,577,123		$	1,080,812
	Accounts Payable		$	427,365		$	386,490		$	236,131
	Accrued Expenses			-			-			-
	Deferred Revenues			-			-			-
	Short Term Debt			40,016			42,632			42,048
	Short Term Capital Leases			-			-			-
	Other Current Liabilities			67,166			31,276			17,982
		Total Current Liabilities		534,547			460,398			296,161
	Other LT Liabilities			188,979			198,063			74,334
	Long Term Debt			622,896			623,547			446,522
	Long Term Capital Leases			-			-			-
	Minority Interests			-			-			-
	Pref Stock (Liq Value)			-			-			-
		Total Liabilities & Pref Stock		1,346,422			1,282,008			817,017
	Common Equity			305,560			295,115			263,795
		Total Liabilities & Equity	$	1,651,982		$	1,577,123		$	1,080,812
	Common Shares Outstanding (000’s)			26,417			26,412			24,053
	Cash Value per share		$	1.01		$	1.15		$	1.07
	Common Book Value per share		$	11.57		$	11.17		$	10.97
	Common Tangible Book Value per share		$	(8.15	)	$	(8.05	)	$	(10.14	)
	Total Debt		$	662,912		$	666,179		$	488,570
	Net Debt		$	636,338		$	635,773		$	462,838
	Total Capitalization		$	968,472		$	961,294		$	752,365
Balance Sheet Analysis
Effectiveness and Efficiency
	A/R Turnover			6.5x			7.7x			7.4x
	Inventory Turnover			4.7x			5.7x			6.3x
	Asset Turnover			1.0x			1.1x			1.0x
	Days Sales Outstanding			56.2			47.7			49.2
	Days Inventory Outstanding			77.7			63.9			58.3
	Days Payable Outstanding			98.4			88.6			92.8
	Normalized Return on Avg Assets			1.6	%		3.6	%		na
	Normalized Return on Avg Common Equity			8.9	%		16.9	%		na
Financial Strength
	Current Ratio			1.4			1.4			1.1
	Quick Ratio			0.8			0.9			0.7
	Total Debt/Total Capitalization			68.4	%		69.3	%		64.9	%
	Total Debt/TIC			52.5	%		52.8	%		38.7	%
	Total Debt/EBITDA			4.4x			4.0x			3.2x
	Total Debt/EBITDA-CAPEX			5.5x			5.0x			4.0x
	EBITDA/Interest Expense			2.5x			3.2x			4.0x
	EBITDA-CAPEX/Interest Expense			2.0x			2.6x			3.3x

Income and Cashflow Analysis

					Six Months Ended						Fiscal Years Ended
		LTM
		Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Profitability & Cost Ratios (as % of Revenue)
	Gross Margin		21.4	%		21.5	%		25.5	%		23.2	%		26.4	%
	S, G & A		15.2	%		16.2	%		14.3	%		14.2	%		14.1	%
	Operating Income		6.1	%		5.1	%		11.1	%		8.8	%		11.3	%
	Pre-Tax		2.5	%		1.5	%		7.5	%		5.3	%		7.6	%
	EBIT		6.2	%		5.1	%		11.1	%		9.0	%		11.2	%
	EBITDA		9.4	%		8.4	%		13.5	%		11.8	%		14.4	%
	Normalized Net Income to Common		1.7	%		0.9	%		4.6	%		3.4	%		4.7	%
	Reported Net Income		-0.5	%		0.2	%		-1.7	%		-1.5	%		4.4	%
	CAPEX		1.9	%		1.4	%		2.1	%		2.3	%		2.8	%
Period Growth Rates
	Revenue					33.0	%					34.4	%
	EBIT					-38.6	%					8.1	%
	EBITDA					-17.1	%					9.5	%

Notes

Unrealized gains included both plant consolidation costs and restructuring costs
There is a approximately 821MM Liability for the company’s liability to clean up a superfund site

July 10th, Manitowoc announced the following:

• poor second quarter results, up to $20 million in restructuring charges, plan to cut jobs.

• for full year, they expect earnings per share to be between 80c and $1 per share (Excluding charges)

Other Analysis

Company Description

Manitowoc Company, Inc. is a diversified industrial manufacturer that operates in three principal markets: cranes and related products, foodservice equipment and marine. The Company’s crane business is a global provider of engineered lift solutions, offering lifting equipment in industrial manufacturing industry. Manitowoc Company designs, manufactures and markets a comprehensive line of crawler cranes, mobile telescopic cranes, tower cranes, boom trucks and aerial work platforms with capacities up to 1,433 tons. The Company’s foodservice business is a manufacturer of cold-side commercial foodservice products, including ice-making machines, walk-in and reach-in refrigerators/freezers, fountain beverage delivery systems and other foodservice refrigeration products. The marine segment provides new construction, ship repair and maintenance services for freshwater and saltwater vessels from four shipyards on the United States Great Lakes.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 68

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Joy Global Inc. Overview ($ in thousands, except per share)

Company Information

Name	Joy Global Inc.	Address	100 East Wisconsin Ave., Suite 2780
Symbol	JOYG	City, State Zip	Milwaukee, WI 53202
Latest Fiscal YE	2-Nov-02	Telephone	(414) 319-8500
Latest Rprt Per	2-Aug-03	Website	http://www.joyglobal.com/

Market Information

As of Date		3-Oct-03			Market Cap	$	853,563
	Exchange	Nasdaq			Total Invested Capital (TIC)	$	1,073,495
	Stock Price	$	17.42		Enterprise Value (EV)	$	970,021
	52 Week High	$	16.40
	52 Week Low	$	7.65		Insider Ownership		0.00	%
	Avg. Daily Volume (000’s)		183		Institutional
	Beta		(87.49	)	% Owned		95.00	%
	Shares Outstanding (000’s)		48,999		Number of Institutions		251

Valuation Analysis

		Multiple of
		Market Cap		TIC			EV
Latest Twelve Months
	Revenue		0.77x		0.97	x		0.87	x
	EBIT		21.14x		26.58	x		24.02	x
	EBITDA		9.16x		11.52	x		10.41	x
	Normalized Net Income		97.94x		123.18	x		111.30	x
	Basic Normalized EPS		102.47x		na			na
Projected
	Dec-03 Mean Revenue		0.74x		0.93	x		0.84	x
	Dec-04 Mean Revenue		0.68x		0.86	x		0.77	x
	Dec-03 Mean EBITDA		9.03x		11.36	x		10.26	x
	Dec-04 Mean EBITDA		6.81x		8.57	x		7.74	x
	Dec-03 Mean EPS		76.40x		na			na
	Dec-04 Mean EPS		26.27x		na			na
Most Recent Filing
	Assets		0.66x		0.82	x		0.74	x
	Common Equity		2.34x		na			na
	Tangible Common Equity		4.72x		na			na

Mean Consensus Estimates

Year Ending	# Ests		Revenue		EBITDA		EPS
December-03		5	$	1,148,800	$	94,500	$	0.23
December-04		3	$	1,252,700	$	125,300	$	0.66
LT Growth		2	na		na			8.00	%

Income and Cashflow Statement Data

						Nine Months Ended						Fiscal Years Ended
			LTM
			Aug-03			Aug-03			Aug-02			Nov-02			Nov-01
Revenue			$	1,111,106		$	838,140		$	877,881		$	1,150,847		$	1,148,173
	Cost of Revenue			846,653			637,802			745,439			954,290			937,704
		Gross Profit		264,453			200,338			132,442			196,557			210,469
	Selling, General & Administrative			225,966			175,484			162,339			212,821			221,792
	Other Operating			-			-			-			-			-
		Operating Income		38,487			24,854			(29,897	)		(16,264	)		(11,323	)
	Interest Income / (Expense), net			(22,557	)		(16,895	)		(22,143	)		(27,805	)		(37,466	)
	Other Income / (Expense), net			1,893			1,996			1,224			1,121			2,966
		Pre-tax Income		17,823			9,955			(50,816	)		(42,948	)		(45,823	)
	Taxes			8,855			2,525			(20,565	)		(14,235	)		(13,555	)
		After-tax Income		8,968			7,430			(30,251	)		(28,713	)		(32,268	)
	Minority Interest			(253	)		-			(1,421	)		(1,674	)		(2,279	)
	Equity in Affiliates			-			-			-			-			-
		Normalized Net Income		8,715			7,430			(31,672	)		(30,387	)		(34,547	)
	Preferred Dividends			-			-			-			-			-
		Normalized Net Income to Common	$	8,715		$	7,430		$	(31,672	)	$	(30,387	)	$	(34,547	)
		Normalized EBIT	$	40,380		$	26,850		$	(28,673	)	$	(15,143	)	$	(8,357	)
		Depreciation & Amortization	$	52,837		$	16,000		$	22,300		$	59,137		$	56,419
		Normalized EBITDA	$	93,217		$	42,850		$	(6,373	)	$	43,994		$	48,062
		CAPEX	$	23,884		$	17,368		$	12,571		$	19,087		$	22,258
		EBITDA - CAPEX	$	69,333		$	25,482		$	(18,944	)	$	24,907		$	25,804
GAAP Operating Cash Flow			$	109,108		$	48,628		$	67,061		$	127,541		$	(41,661	)
Basic Reported Weighted Avg Shares Out (000’s)							50,229			50,150			50,169			50,000
		Basic Normalized EPS	$	0.17		$	0.15		$	(0.63	)	$	(0.61	)	$	(0.69	)
		Basic Reported EPS	$	0.19		$	0.07		$	(0.68	)	$	(0.56	)	$	27.03
Diluted Reported Weighted Avg Shares Out (000’s)							50,393			50,150			50,169			50,000
		Diluted Normalized EPS	$	0.17		$	0.15		$	(0.63	)	$	(0.61	)	$	(0.69	)
		Diluted Reported EPS	$	0.19		$	0.07		$	(0.68	)	$	(0.56	)	$	27.03
Normalized Reconciliation
	Restructuring/Goodwill Impairment		$	(9,519	)	$	(3,758	)	$	5,761		$	-		$	-
	Other Unusual (Expense) Gain Items			15,069			(261	)		(8,100	)		7,230			8,623
	Tax Shelter (Charge) on Unusual Items			-			-			-			-			-
	Unusual (Exp) Gain Items, net of Taxes			5,550			(4,019	)		(2,339	)		7,230			8,623
	Accounting Changes, net of Taxes			-			-			-			-			-
	Discontinued Operations, net of Taxes			-			-			-			-			253,183
	Extraordinary Items, net of Taxes			(4,860	)		-			-			(4,860	)		1,124,083
	Total Reconciling Items, net of Taxes		$	690		$	(4,019	)	$	(2,339	)	$	2,370		$	1,385,889
		Reported Income Tax (Benefit)	$	8,855		$	2,525		$	(20,565	)	$	(14,235	)	$	(13,555	)
		Reported Net Income (Loss)	$	9,405		$	3,411		$	(34,011	)	$	(28,017	)	$	1,351,342
Revenue Breakdown
	Road Construction Equipment		$	-		$	-		$	-		$	-		$	-
	Other Heavy Construction			1,111,106			838,140			877,881			1,150,847			1,148,173
	Other			-			-			-			-			-
			$	1,111,106		$	838,140		$	877,881		$	1,150,847		$	1,148,173
	Road Construction Equipment			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Other Heavy Construction			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Other			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 69

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Joy Global Inc. Overview (continued) ($ in thousands, except per share)

Balance Sheet Data

			Aug-03			Nov-02			Nov-01
	Cash & Mkt Securities		$	103,474		$	71,159		$	59,065
	Accounts Receivable			183,687			171,534			209,455
	Inventory			432,209			418,557			513,854
	Other Current Assets			36,132			38,857			16,225
		Total Current Assets		755,502			700,107			798,599
	PPE, net			225,420			233,174			251,916
	Intangibles, net			184,401			190,541			243,595
	Deferred Income Taxes			-			64,890			-
	Other Assets			137,382			68,627			77,604
		Total Assets	$	1,302,705		$	1,257,339		$	1,371,714
	Accounts Payable		$	84,140		$	73,492		$	75,607
	Accrued Expenses			96,104			89,996			91,610
	Deferred Revenues			56,001			26,244			15,482
	Short Term Debt			17,066			3,032			1,733
	Short Term Capital Leases			-			-			-
	Other Current Liabilities			151,081			124,641			170,854
		Total Current Liabilities		404,392			317,405			355,286
	Other LT Liabilities			330,333			363,003			236,024
	Long Term Debt			202,866			215,085			288,203
	Long Term Capital Leases			-			-			-
	Minority Interests			-			11,230			8,494
	Pref Stock (Liq Value)			-			-			-
		Total Liabilities & Pref Stock		937,591			906,723			888,007
	Common Equity			365,114			350,616			483,707
		Total Liabilities & Equity	$	1,302,705		$	1,257,339		$	1,371,714
	Common Shares Outstanding (000’s)			50,228			50,228			50,000
	Cash Value per share		$	2.06		$	1.42		$	1.18
	Common Book Value per share		$	7.27		$	6.98		$	9.67
	Common Tangible Book Value per share		$	3.60		$	3.19		$	4.80
	Total Debt		$	219,932		$	229,347		$	298,430
	Net Debt		$	116,458		$	158,188		$	239,365
	Total Capitalization		$	585,046		$	579,963		$	782,137
Balance Sheet Analysis
Effectiveness and Efficiency
	A/R Turnover			6.3	x		6.0	x		5.5	x
	Inventory Turnover			2.0	x		2.0	x		1.8	x
	Asset Turnover			0.9	x		0.9	x		0.8	x
	Days Sales Outstanding			58.3			60.4			66.6
	Days Inventory Outstanding			183.4			178.3			200.0
	Days Payable Outstanding			26.8			23.3			23.8
	Normalized Return on Avg Assets			0.7	%		-2.3	%		na
	Normalized Return on Avg Common Equity			2.4	%		-7.3	%		na
Financial Strength
	Current Ratio			1.9			2.2			2.2
	Quick Ratio			0.8			0.9			0.8
	Total Debt/Total Capitalization			37.6	%		39.5	%		38.2	%
	Total Debt/TIC			20.5	%		21.4	%		27.8	%
	Total Debt/EBITDA			2.4	x		5.2	x		6.2	x
	Total Debt/EBITDA-CAPEX			3.2	x		9.2	x		11.6	x
	EBITDA/Interest Expense			4.1	x		1.6	x		1.3	x
	EBITDA-CAPEX/Interest Expense			3.1	x		0.9	x		0.7	x

Income and Cashflow Analysis

					Nine Months Ended						Fiscal Years Ended
		LTM
		Aug-03			Aug-03			Aug-02			Nov-02			Nov-01
Profitability & Cost Ratios (as % of Revenue)
	Gross Margin		23.8	%		23.9	%		15.1	%		17.1	%		18.3	%
	S,G & A		20.3	%		20.9	%		18.5	%		18.5	%		19.3	%
	Operating Income		3.5	%		3.0	%		-3.4	%		-1.4	%		-1.0	%
	Pre-Tax		1.6	%		1.2	%		-5.8	%		-3.7	%		-4.0	%
	EBIT		3.6	%		3.2	%		-3.3	%		-1.3	%		-0.7	%
	EBITDA		8.4	%		5.1	%		-0.7	%		3.8	%		4.2	%
	Normalized Net Income to Common		0.8	%		0.9	%		-3.6	%		-2.6	%		-3.0	%
	Reported Net Income		0.8	%		0.4	%		-3.9	%		-2.4	%		117.7	%
	CAPEX		2.1	%		2.1	%		1.4	%		1.7	%		1.9	%
Period Growth Rates
	Revenue					-4.5	%					0.2	%
	EBIT					-193.6	%					81.2	%
	EBITDA					-772.4	%					-8.5	%

Notes

Unsual expenses include reorganization items,and loss on early retirement of debt.
Extraordinary items include gain on debt discharge of $1.12b.

Other Analysis

Company Description

Joy Global Inc., through its subsidiaries, manufactures and markets products classified into two business segments: underground mining machinery (Joy Mining Machinery) and surface mining equipment (P and H Mining Equipment). The Company is a major manufacturer of underground mining equipment for the extraction of coal and other bedded minerals and offers comprehensive service locations near major mining regions worldwide. P and H is a major producer of surface mining equipment for the extraction of ores and minerals and provides extensive operational support for many types of equipment used in surface mining. On June 7, 1999, Joy’s predecessor company, Harnischfeger Industries, Inc, filed voluntary petitions for reorganization under the Bankruptcy Code in the United States Bankruptcy Court. By order dated May 29, 2001, the Bankruptcy Court confirmed the Company’s Plan of Reorganization.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 70

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Astec Industries, Inc. Overview ($ in thousands, except per share)

Company Information

Name	Astec Industries, Inc.	Address	4101 Jerome Avenue, P.O. Box 72787
Symbol	ASTE	City, State Zip	Chattanooga, TN 37407
Latest Fiscal YE	31-Dec-02	Telephone	(423) 867-4210
Latest Rprt Per	30-Jun-03	Website	http://www.astecindustries.com/

Market Information

As of Date		3-Oct-03		Market Cap	$	203,491
	Exchange	Nasdaq		Total Invested Capital (TIC)	$	291,652
	Stock Price	$	10.33	Enterprise Value (EV)	$	280,372
	52 Week High	$	12.72
	52 Week Low	$	5.21	Insider Ownership		16.00	%
	Avg. Daily Volume (000’s)		46	Institutional
	Beta		1.34	% Owned		56.00	%
	Shares Outstanding (000’s)		19,699	Number of Institutions		192

Valuation Analysis

		Multiple of
		Market Cap		TIC		EV
Latest Twelve Months
	Revenue		0.44x		0.63x		0.60x
	EBIT	na		na		na
	EBITDA		29.23x		41.90x		40.28x
	Normalized Net Income	na		na		na
	Basic Normalized EPS	na		na		na
Projected
	Dec-03 Mean Revenue		0.46x		0.65x		0.63x
	Dec-04 Mean Revenue		0.42x		0.61x		0.58x
	Dec-03 Mean EBITDA		13.75x		19.71x		18.94x
	Dec-04 Mean EBITDA		7.48x		10.72x		10.31x
	Dec-03 Mean EPS	na		na		na
	Dec-04 Mean EPS		20.46x	na		na
Most Recent Filing
	Assets		0.56x		0.80x		0.77x
	Common Equity		1.06x	na		na
	Tangible Common Equity		1.31x	na		na

Mean Consensus Estimates

Year Ending	# Ests		Revenue		EBITDA		EPS
December-03		2	$	447,000	$	14,800	$	(0.07	)
December-04		1	$	482,000	$	27,200	$	0.51
LT Growth		1	na		na			7.00	%

Income and Cashflow Statement Data

							Six Months Ended						Fiscal Years Ended
				LTM
				Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Revenue				$	463,446		$	231,968		$	249,111		$	480,589		$	455,839
	Cost of Revenue				393,482			191,433			194,610			396,659			364,915
			Gross Profit		69,964			40,535			54,501			83,930			90,924
	Selling, General & Administrative				72,369			39,898			39,936			72,407			71,691
	Other Operating				7,772			-			-			7,772			9,651
			Operating Income		(10,177	)		637			14,565			3,751			9,582
	Interest Income / (Expense), net				(8,117	)		(4,438	)		(5,162	)		(8,841	)		(7,782	)
	Other Income / (Expense), net				1,201			1,087			1,128			1,242			2,039
			Pre-tax Income		(17,093	)		(2,714	)		10,531			(3,848	)		3,839
	Taxes				(8,502	)		(2,540	)		3,451			(2,511	)		1,481
			After-tax Income		(8,591	)		(174	)		7,080			(1,337	)		2,358
	Minority Interest				(85	)		(31	)		(38	)		(92	)		(124	)
	Equity in Affiliates				-			-			-			-			(242	)
			Normalized Net Income		(8,676	)		(205	)		7,042			(1,429	)		1,992
	Preferred Dividends				-			-			-			-			-
			Normalized Net Income to Common	$	(8,676	)	$	(205	)	$	7,042		$	(1,429	)	$	1,992
			Normalized EBIT	$	(8,976	)	$	1,724		$	15,693		$	4,993		$	11,379
Depreciation & Amortization				$	15,937		$	7,232		$	6,507		$	15,212		$	17,046
			Normalized EBITDA	$	6,961		$	8,956		$	22,200		$	20,205		$	28,425
			CAPEX	$	3,962		$	2,688		$	18,000		$	19,274		$	8,057
			EBITDA - CAPEX	$	2,999		$	6,268		$	4,200		$	931		$	20,368
GAAP Operating Cash Flow				$	5,218		$	(1,684	)	$	25,935		$	32,837		$	1,452
Basic Reported Weighted Avg Shares Out (000’s)								19,682			19,639			19,658			19,442
			Basic Normalized EPS	$	(0.44	)	$	(0.01	)	$	0.36		$	(0.07	)	$	0.10
			Basic Reported EPS	$	(0.81	)	$	(0.21	)	$	0.36		$	(0.24	)	$	0.10
Diluted Reported Weighted Avg Shares Out (000’s)								19,682			19,994			19,658			19,753
			Diluted Normalized EPS	$	(0.43	)	$	(0.01	)	$	0.35		$	(0.07	)	$	0.10
			Diluted Reported EPS	$	(0.80	)	$	(0.21	)	$	0.35		$	(0.24	)	$	0.10
Normalized Reconciliation
	Restructuring/Goodwill Impairment			$	-		$	-		$	-		$	-		$	-
	Other Unusual (Expense) Gain Items				(7,114	)		(3,837	)		-			(3,277	)		-
	Tax Shelter (Charge) on Unusual Items				-			-			-			-			-
	Unusual (Exp) Gain Items, net of Taxes				(7,114	)		(3,837	)		-			(3,277	)		-
	Accounting Changes, net of Taxes				-			-			-			-			-
	Discontinued Operations, net of Taxes				-			-			-			-			-
	Extraordinary Items, net of Taxes				-			-			-			-			-
	Total Reconciling Items, net of Taxes			$	(7,114	)	$	(3,837	)	$	-		$	(3,277	)	$	-
		Reported Income Tax (Benefit)		$	(8,502	)	$	(2,540	)	$	3,451		$	(2,511	)	$	1,481
		Reported Net Income (Loss)		$	(15,790	)	$	(4,042	)	$	7,042		$	(4,706	)	$	1,992
Revenue Breakdown
	Road Construction Equipment			$	225,543		$	116,314		$	128,628		$	237,857		$	221,163
	Other Heavy Construction				235,072			114,885			118,628			238,815			231,523
	Other				2,831			769			1,855			3,917			3,153
				$	463,446		$	231,968		$	249,111		$	480,589		$	455,839
	Road Construction Equipment				48.7	%		50.1	%		51.6	%		49.5	%		48.5	%
	Other Heavy Construction				50.7	%		49.5	%		47.6	%		49.7	%		50.8	%
	Other				0.6	%		0.3	%		0.7	%		0.8	%		0.7	%

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 71

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Astec Industries, Inc. Overview (continued) ($ in thousands, except per share)

Balance Sheet Data

				Jun-03			Dec-02			Dec-01
	Cash & Mkt Securities			$	11,280		$	30,341		$	6,670
	Accounts Receivable				57,609			48,965			53,057
	Inventory				113,740			120,238			128,996
	Other Current Assets				23,204			50,331			36,537
		Total Current Assets			205,833			249,875			225,260
	PPE, net				115,357			125,799			123,394
	Intangibles, net				36,093			36,093			36,115
	Deferred Income Taxes				-			-			-
	Other Assets				6,247			4,736			15,922
		Total Assets		$	363,530		$	416,503		$	400,691
	Accounts Payable			$	34,158		$	33,680		$	26,246
	Accrued Expenses				3,739			6,110			6,667
	Deferred Revenues				-			-			-
	Short Term Debt				9,555			3,220			2,368
	Short Term Capital Leases				-			-			-
	Other Current Liabilities				34,929			33,641			27,831
		Total Current Liabilities			82,381			76,651			63,112
	Other LT Liabilities		��		10,638			15,315			12,597
	Long Term Debt				78,155			130,645			127,285
	Long Term Capital Leases				-			-			-
	Minority Interests				451			460			350
	Pref Stock (Liq Value)				-			-			-
		Total Liabilities & Pref Stock			171,625			223,071			203,344
	Common Equity				191,905			193,432			197,347
		Total Liabilities & Equity		$	363,530		$	416,503		$	400,691
	Common Shares Outstanding (000’s)				19,678			19,677			19,603
	Cash Value per share			$	0.57		$	1.54		$	0.34
	Common Book Value per share			$	9.75		$	9.83		$	10.07
	Common Tangible Book Value per share			$	7.92		$	8.00		$	8.22
	Total Debt			$	88,161		$	134,325		$	130,003
	Net Debt			$	76,881		$	103,984		$	123,333
	Total Capitalization			$	280,066		$	327,757		$	327,350
Balance Sheet Analysis
Effectiveness and Efficiency
	A/R Turnover				8.7x			9.4x			8.6x
	Inventory Turnover				3.4x			3.2x			2.8x
	Asset Turnover				1.2x			1.2x			1.1x
	Days Sales Outstanding				42.0			38.7			42.5
	Days Inventory Outstanding				108.5			114.7			129.0
	Days Payable Outstanding				26.1			22.9			21.5
	Normalized Return on Avg Assets				-2.2	%		-0.3	%	na
	Normalized Return on Avg Common Equity				-4.5	%		-0.7	%	na
Financial Strength
	Current Ratio				2.5			3.3			3.6
	Quick Ratio				1.1			1.7			1.5
	Total Debt/Total Capitalization				31.5	%		41.0	%		39.7	%
	Total Debt/TIC				30.2	%		46.1	%		44.6	%
	Total Debt/EBITDA				12.7x			6.6x			4.6x
	Total Debt/EBITDA-CAPEX				29.4x			144.3x			6.4x
	EBITDA/Interest Expense				0.9x			2.3x			3.7x
	EBITDA-CAPEX/Interest Expense				0.4x			0.1x			2.6x

Income and Cashflow Analysis

					Six Months Ended						Fiscal Years Ended
		LTM
		Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Profitability & Cost Ratios (as % of Revenue)
	Gross Margin		15.1	%		17.5	%		21.9	%		17.5	%		19.9	%
	S,G & A		15.6	%		17.2	%		16.0	%		15.1	%		15.7	%
	Operating Income		-2.2	%		0.3	%		5.8	%		0.8	%		2.1	%
	Pre-Tax		-3.7	%		-1.2	%		4.2	%		-0.8	%		0.8	%
	EBIT		-1.9	%		0.7	%		6.3	%		1.0	%		2.5	%
	EBITDA		1.5	%		3.9	%		8.9	%		4.2	%		6.2	%
	Normalized Net Income to Common		-1.9	%		-0.1	%		2.8	%		-0.3	%		0.4	%
	Reported Net Income		-3.4	%		-1.7	%		2.8	%		-1.0	%		0.4	%
	CAPEX		0.9	%		1.2	%		7.2	%		4.0	%		1.8	%
Period Growth Rates
	Revenue					-6.9	%					5.4	%
	EBIT					-89.0	%					-56.1	%
	EBITDA					-59.7	%					-28.9	%

Notes

Unusual expense includes relocation and start up expenses

June 30, 2003 results are based on news annoucements. Depreciation and amortization expense is estimated to derive EBITDA for the second quarter.

Other Analysis

Company Description

Astec Industries, Inc. designs, engineers, manufactures and markets equipment and components used primarily in road building and related construction activities. The Company’s products are used in each phase of road building, from quarrying and crushing the aggregate to testing the mix for application of the road surface. Astec also manufactures certain equipment and components unrelated to road construction, including trenching, auger boring, directional drilling, environmental remediation and industrial heat transfer equipment. The Company operates in four business segments: asphalt group, aggregate and mining group, mobile asphalt paving group and underground group.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 72

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Company Information

Gehl Company Overview ($ in thousands, except per share)

Name	Gehl Company	Address	143 Water Street
Symbol	GEHL	City, State Zip	West Bend, WI 53095
Latest Fiscal YE	31-Dec-02	Telephone	(262) 334-9461
Latest Rprt Per	29-Jun-03	Website	http://www.gehl.com/

Market Information

As of Date		3-Oct-03		Market Cap	$	60,886
	Exchange	Nasdaq		Total Invested Capital (TIC)	$	126,758
	Stock Price	$	11.37	Enterprise Value (EV)	$	122,016
	52 Week High	$	12.22
	52 Week Low	$	7.51	Insider Ownership		2.00	%
	Avg. Daily Volume (000’s)		11	Institutional
	Beta		0.26	% Owned		36.00	%
	Shares Outstanding (000’s)		5,355	Number of Institutions		44

Valuation Analysis

		Multiple of
		Market Cap		TIC		EV
Latest Twelve Months
	Revenue		0.26x		0.54x		0.52x
	EBIT		9.20x		19.16x		18.44x
	EBITDA		5.32x		11.07x		10.66x
	Normalized Net Income		17.13x		35.65x		34.32x
	Basic Normalized EPS		17.23x	na		na
Projected
	Dec-03 Mean Revenue		0.26x		0.54x		0.52x
	Dec-04 Mean Revenue		0.25x		0.52x		0.50x
	Dec-03 Mean EBITDA		4.35x		9.05x		8.72x
	Dec-04 Mean EBITDA		3.81x		7.92x		7.63x
	Dec-03 Mean EPS		15.16x	na		na
	Dec-04 Mean EPS		11.97x	na		na
Most Recent Filing
	Assets		0.25x		0.51x		0.49x
	Common Equity		0.62x	na		na
	Tangible Common Equity		0.70x	na		na

Mean Consensus Estimates

Year Ending	# Ests		Revenue		EBITDA		EPS
December-03		1	$	233,800	$	14,000	$	0.75
December-04		1	$	242,400	$	16,000	$	0.95
LT Growth		1	na		na			12.00	%

Income and Cashflow Statement Data

							Six Months Ended						Fiscal Years Ended
				LTM
				Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Revenue				$	232,890		$	127,082		$	126,757		$	232,565		$	240,394
	Cost of Revenue				184,902			100,353			99,171			183,720			187,069
			Gross Profit		47,988			26,729			27,586			48,845			53,325
	Selling, General & Administrative				41,322			21,852			23,263			42,733			39,569
	Other Operating				-			-			-			-			-
			Operating Income		6,666			4,877			4,323			6,112			13,756
	Interest Income / (Expense), net				(1,769	)		(852	)		(1,149	)		(2,066	)		(2,275	)
	Other Income / (Expense), net				(49	)		384			(1,053	)		(1,486	)		(3,122	)
			Pre-tax Income		4,848			4,409			2,121			2,560			8,359
	Taxes				1,293			1,473			742			562			1,241
			After-tax Income		3,555			2,936			1,379			1,998			7,118
	Minority Interest				-			-			-			-			-
	Equity in Affiliates				-			-			-			-			-
			Normalized Net Income		3,555			2,936			1,379			1,998			7,118
	Preferred Dividends				-			-			-			-			-
			Normalized Net Income to Common	$	3,555		$	2,936		$	1,379		$	1,998		$	7,118
			Normalized EBIT	$	6,617		$	5,261		$	3,270		$	4,626		$	10,634
Depreciation & Amortization				$	4,829		$	2,563		$	2,547		$	4,813		$	5,416
			Normalized EBITDA	$	11,446		$	7,824		$	5,817		$	9,439		$	16,050
			CAPEX	$	3,860		$	920		$	3,850		$	6,790		$	4,135
			EBITDA - CAPEX	$	7,586		$	6,904		$	1,967		$	2,649		$	11,915
GAAP Operating Cash Flow				$	11,442		$	(3,679	)	$	1,647		$	16,768		$	(106	)
Basic Reported Weighted Avg Shares Out (000’s)								5,360			5,387			5,390			5,345
			Basic Normalized EPS	$	0.66		$	0.55		$	0.26		$	0.37		$	1.33
			Basic Reported EPS	$	0.49		$	0.51		$	0.21		$	0.19		$	0.43
Diluted Reported Weighted Avg Shares Out (000’s)								5,372			5,516			5,466			5,507
			Diluted Normalized EPS	$	0.67		$	0.55		$	0.25		$	0.37		$	1.29
			Diluted Reported EPS	$	0.50		$	0.51		$	0.20		$	0.19		$	0.42
Normalized Reconciliation
	Restructuring/Goodwill Impairment			$	(844	)	$	(281	)	$	(392	)	$	(955	)	$	(4,813	)
	Other Unusual (Expense) Gain Items				-			-			-			-			-
	Tax Shelter (Charge) on Unusual Items				(43	)		94			137			-			-
	Unusual (Exp) Gain Items, net of Taxes				(887	)		(187	)		(255	)		(955	)		(4,813	)
	Accounting Changes, net of Taxes				-			-			-			-			-
	Discontinued Operations, net of Taxes				-			-			-			-			-
	Extraordinary Items, net of Taxes				-			-			-			-			-
	Total Reconciling Items, net of Taxes			$	(887	)	$	(187	)	$	(255	)	$	(955	)	$	(4,813	)
		Reported Income Tax (Benefit)		$	1,336		$	1,379		$	605		$	562		$	1,241
		Reported Net Income (Loss)		$	2,668		$	2,749		$	1,124		$	1,043		$	2,305
Revenue Breakdown
	Road Construction Equipment			$	-		$	-		$	-		$	-		$	-
	Other Heavy Construction				232,890			127,082			126,757			232,565			240,394
	Other				-			-			-			-			-
				$	232,890		$	127,082		$	126,757		$	232,565		$	240,394
	Road Construction Equipment				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Other Heavy Construction				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Other				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 73

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Gehl Company Overview (continued) ($ in thousands, except per share)

Balance Sheet Data

			Jun-03			Dec-02			Dec-01
	Cash & Mkt Securities		$	4,742		$	2,243		$	2,248
	Accounts Receivable			118,098			97,627			90,714
	Inventory			36,550			36,771			52,161
	Other Current Assets			16,772			16,373			18,801
		Total Current Assets		176,162			153,014			163,924
	PPE, net			45,056			46,697			43,431
	Intangibles, net			11,748			11,696			12,248
	Deferred Income Taxes			-			-			-
	Other Assets			15,037			14,662			17,806
		Total Assets	$	248,003		$	226,069		$	237,409
	Accounts Payable		$	33,544		$	27,540		$	30,644
	Accrued Expenses			21,300			20,315			25,661
	Deferred Revenues			-			-			-
	Short Term Debt			1,446			1,779			161
	Short Term Capital Leases			-			-			-
	Other Current Liabilities			4,426			-			-
		Total Current Liabilities		60,716			49,634			56,466
	Other LT Liabilities			24,182			24,162			16,685
	Long Term Debt			64,426			56,135			64,237
	Long Term Capital Leases			-			-			-
	Minority Interests			-			-			-
	Pref Stock (Liq Value)			-			-			-
		Total Liabilities & Pref Stock		149,324			129,931			137,388
	Common Equity			98,679			96,138			100,021
		Total Liabilities & Equity	$	248,003		$	226,069		$	237,409
	Common Shares Outstanding (000’s)			5,355			5,374			5,360
	Cash Value per share		$	0.89		$	0.42		$	0.42
	Common Book Value per share		$	18.43		$	17.89		$	18.66
	Common Tangible Book Value per share		$	16.23		$	15.71		$	16.38
	Total Debt		$	65,872		$	57,914		$	64,398
	Net Debt		$	61,130		$	55,671		$	62,150
	Total Capitalization		$	164,551		$	154,052		$	164,419
Balance Sheet Analysis
Effectiveness and Efficiency
	A/R Turnover			2.2x			2.5x			2.7x
	Inventory Turnover			5.0x			4.1x			3.6x
	Asset Turnover			1.0x			1.0x			1.0x
	Days Sales Outstanding			169.0			147.8			137.7
	Days Inventory Outstanding			72.4			88.3			101.8
	Days Payable Outstanding			49.3			46.9			49.4
	Normalized Return on Avg Assets			1.5	%		0.9	%	na
	Normalized Return on Avg Common Equity			3.6	%		2.0	%	na
Financial Strength
	Current Ratio			2.9			3.1			2.9
	Quick Ratio			2.3			2.3			2.0
	Total Debt/Total Capitalization			40.0	%		37.6	%		39.2	%
	Total Debt/TIC			52.0	%		45.7	%		50.8	%
	Total Debt/EBITDA			5.8x			6.1x			4.0x
	Total Debt/EBITDA-CAPEX			8.7x			21.9x			5.4x
	EBITDA/Interest Expense			6.5x			4.6x			7.1x
	EBITDA-CAPEX/Interest Expense			4.3x			1.3x			5.2x

Income and Cashflow Analysis

					Six Months Ended						Fiscal Years Ended
		LTM
		Jun-03			Jun-03			Jun-02			Dec-02			Dec-01
Profitability & Cost Ratios (as % of Revenue)
	Gross Margin		20.6	%		21.0	%		21.8	%		21.0	%		22.2	%
	S,G & A		17.7	%		17.2	%		18.4	%		18.4	%		16.5	%
	Operating Income		2.9	%		3.8	%		3.4	%		2.6	%		5.7	%
	Pre-Tax		2.1	%		3.5	%		1.7	%		1.1	%		3.5	%
	EBIT		2.8	%		4.1	%		2.6	%		2.0	%		4.4	%
	EBITDA		4.9	%		6.2	%		4.6	%		4.1	%		6.7	%
	Normalized Net Income to Common		1.5	%		2.3	%		1.1	%		0.9	%		3.0	%
	Reported Net Income		1.1	%		2.2	%		0.9	%		0.4	%		1.0	%
	CAPEX		1.7	%		0.7	%		3.0	%		2.9	%		1.7	%
Period Growth Rates
	Revenue					0.3	%					-3.3	%
	EBIT					60.9	%					-56.5	%
	EBITDA					34.5	%					-41.2	%

Notes

*Restructuring expenses and strategic review costs are normalized out from earnings.

*Latest quarter results were taken from the 8-K filed on July 24, 2003

*Current Liabilities stated are as of Q1 fiscal 2003, with an adjusting entry made under Other Current Liabilities to reconcile the numbers to the second quarter.

Other Analysis

Company Description

Gehl Company designs, manufactures, sells and finances equipment used in the light construction equipment and the agriculture equipment industries. The Company operates in two business segments: construction equipment and agriculture equipment. Construction equipment consists of skid loaders, telescopic handlers, asphalt pavers, compact excavators, compact track loaders, all-wheel-steer loaders and compact loaders and is sold to contractors, sub-contractors, owner operators, rental stores and municipalities. Agriculture equipment include haymaking, forage harvesting, materials handling (skid loaders, telescopic handlers, compact excavators, compact tracked loaders, all-wheel-steer loaders, compact loaders and attachments), manure handling and feedmaking equipment. In addition to the equipment it manufactures, Gehl markets equipment acquired from third-party suppliers. Products acquired from these suppliers accounted for less than 13% of the Company’s net sales in 2002.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 74

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Art’s Way Manufacturing Overview ($ in thousands, except per share)

Company Information

Name	Art’s Way Manufacturing	Address	Hwy 9 West, P.O. Box 288
Symbol	ARTW	City, State Zip	Armstrong, IA 50514
Latest Fiscal YE	30-Nov-02	Telephone	(712) 864-3131
Latest Rprt Per	31-May-03	Website	http://www.artsway-mfg.com/

Market Information

As of Date		3-Oct-03			Market Cap	$	9,440
	Exchange	Nasdaq			Total Invested Capital (TIC)	$	11,667
	Stock Price	$	4.87		Enterprise Value (EV)	$	10,687
	52 Week High	$	5.24
	52 Week Low	$	2.70		Insider Ownership		23.00	%
	Avg. Daily Volume (000’s)		1		Institutional
	Beta		(0.26	)	% Owned		9.00	%
	Shares Outstanding (000’s)		1,938		Number of Institutions		6

Valuation Analysis

		Multiple of
		Market Cap		TIC		EV
Latest Twelve Months
	Revenue		0.86x		1.07x		0.98x
	EBIT		8.64x		10.68x		9.79x
	EBITDA		6.93x		8.57x		7.85x
	Normalized Net Income		9.81x		12.13x		11.11x
	Basic Normalized EPS		9.55x	na		na
Projected
	Dec-03 Mean Revenue	na		na		na
	Dec-04 Mean Revenue	na		na		na
	Dec-03 Mean EBITDA	na		na		na
	Dec-04 Mean EBITDA	na		na		na
	Dec-03 Mean EPS	na		na		na
	Dec-04 Mean EPS	na		na		na
Most Recent Filing
	Assets		1.20x		1.48x		1.36x
	Common Equity		2.69x	na		na
	Tangible Common Equity		2.69x	na		na

Mean Consensus Estimates

Year Ending	# Ests	Revenue		EBITDA		EPS
December-03	na	$	-	$	-	$	-
December-04	na	$	-	$	-	$	-
LT Growth	na	na		na		na

Income and Cashflow Statement Data

							Six Months Ended						Fiscal Years Ended
				LTM
				May-03			May-03			May-02			Nov-02			Nov-01
Revenue				$	10,945		$	4,941		$	4,895		$	10,899		$	10,891
	Cost of Revenue				7,953			3,505			3,682			8,130			8,768
			Gross Profit		2,992			1,436			1,213			2,769			2,123
	Selling, General & Administrative				1,873			994			1,089			1,968			2,409
	Other Operating				-			-			-			-			-
			Operating Income		1,119			442			124			801			(286	)
	Interest Income / (Expense), net				(124	)		(49	)		(95	)		(170	)		(411	)
	Other Income / (Expense), net				(27	)		(16	)		(47	)		(58	)		9
			Pre-tax Income		968			377			(18	)		573			(688	)
	Taxes				6			2			-			4			64
			After-tax Income		962			375			(18	)		569			(752	)
	Minority Interest				-			-			-			-			-
	Equity in Affiliates				-			-			-			-			-
			Normalized Net Income		962			375			(18	)		569			(752	)
	Preferred Dividends				-			-			-			-			-
			Normalized Net Income to Common	$	962		$	375		$	(18	)	$	569		$	(752	)
			Normalized EBIT	$	1,092		$	426		$	77		$	743		$	(277	)
Depreciation & Amortization				$	270		$	140		$	122		$	252		$	453
			Normalized EBITDA	$	1,362		$	566		$	199		$	995		$	176
			CAPEX	$	142		$	-		$	-		$	142		$	58
			EBITDA - CAPEX	$	1,220		$	566		$	199		$	853		$	118
GAAP Operating Cash Flow				$	585		$	(99	)	$	841		$	1,525		$	901
Basic Reported Weighted Avg Shares Out (000’s)								1,938			1,678			1,808			1,280
			Basic Normalized EPS	$	0.51		$	0.19		$	(0.01	)	$	0.31		$	(0.59	)
			Basic Reported EPS	$	0.51		$	0.19		$	(0.01	)	$	0.31		$	(1.86	)
Diluted Reported Weighted Avg Shares Out (000’s)								1,949			1,678			1,811			1,280
			Diluted Normalized EPS	$	0.51		$	0.19		$	(0.01	)	$	0.31		$	(0.59	)
			Diluted Reported EPS	$	0.51		$	0.19		$	(0.01	)	$	0.31		$	(1.86	)
Normalized Reconciliation
	Restructuring/Goodwill Impairment			$	-		$	-		$	-		$	-		$	-
	Other Unusual (Expense) Gain Items				-			-			-			-			(1,629	)
	Tax Shelter (Charge) on Unusual Items				-			-			-			-			-
	Unusual (Exp) Gain Items, net of Taxes				-			-			-			-			(1,629	)
	Accounting Changes, net of Taxes				-			-			-			-			-
	Discontinued Operations, net of Taxes				-			-			-			-			-
	Extraordinary Items, net of Taxes				-			-			-			-			-
	Total Reconciling Items, net of Taxes			$	-		$	-		$	-		$	-		$	(1,629	)
		Reported Income Tax (Benefit)		$	6		$	2		$	-		$	4		$	64
		Reported Net Income (Loss)		$	962		$	375		$	(18	)	$	569		$	(2,381	)
Revenue Breakdown
	Road Construction Equipment			$	-		$	-		$	-		$	-		$	-
	Other Heavy Construction				10,945			4,941			4,895			10,899			10,891
	Other				-			-			-			-			-
				$	10,945		$	4,941		$	4,895		$	10,899		$	10,891
	Road Construction Equipment				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Other Heavy Construction				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Other				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 75

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Art’s Way Manufacturing Overview (continued) ($ in thousands, except per share)

Balance Sheet Data

			May-03			Nov-02			Nov-01
	Cash & Mkt Securities		$	980		$	75		$	4
	Accounts Receivable			1,183			593			922
	Inventory			4,155			3,577			4,315
	Other Current Assets			71			95			54
		Total Current Assets		6,389			4,340			5,295
	PPE, net			835			975			1,084
	Intangibles, net			-			-			-
	Deferred Income Taxes			-			-			-
	Other Assets			642			606			376
		Total Assets	$	7,866		$	5,921		$	6,755
	Accounts Payable		$	252		$	523		$	984
	Accrued Expenses			734			631			634
	Deferred Revenues			-			-			-
	Short Term Debt			122			676			3,036
	Short Term Capital Leases			-			-			-
	Other Current Liabilities			984			250			65
		Total Current Liabilities		2,092			2,080			4,719
	Other LT Liabilities			160			187			-
	Long Term Debt			2,105			521			272
	Long Term Capital Leases			-			-			-
	Minority Interests			-			-			-
	Pref Stock (Liq Value)			-			-			-
		Total Liabilities & Pref Stock		4,357			2,788			4,991
	Common Equity			3,509			3,133			1,764
		Total Liabilities & Equity	$	7,866		$	5,921		$	6,755
	Common Shares Outstanding (000’s)			1,938			1,938			1,298
	Cash Value per share		$	0.51		$	0.04		$	0.00
	Common Book Value per share		$	1.81		$	1.62		$	1.36
	Common Tangible Book Value per share		$	1.81		$	1.62		$	1.36
	Total Debt		$	2,227		$	1,197		$	3,308
	Net Debt		$	1,247		$	1,122		$	3,304
	Total Capitalization		$	5,736		$	4,330		$	5,072
Balance Sheet Analysis
Effectiveness and Efficiency
	A/R Turnover			12.3x			14.4x			11.8x
	Inventory Turnover			2.1x			2.1x			2.0x
	Asset Turnover			1.6x			1.7x			1.6x
	Days Sales Outstanding			29.6			25.4			30.9
	Days Inventory Outstanding			177.4			177.2			179.6
	Days Payable Outstanding			14.4			27.2			32.1
	Normalized Return on Avg Assets			14.0	%		9.0	%	na
	Normalized Return on Avg Common Equity			29.0	%		23.2	%	na
Financial Strength
	Current Ratio			3.1			2.1			1.1
	Quick Ratio			1.1			0.4			0.2
	Total Debt/Total Capitalization			38.8	%		27.6	%		65.2	%
	Total Debt/TIC			19.1	%		10.3	%		28.4	%
	Total Debt/EBITDA			1.6x			1.2x			18.8x
	Total Debt/EBITDA-CAPEX			1.8x			1.4x			28.0x
	EBITDA/Interest Expense			11.0x			5.9x			0.4x
	EBITDA-CAPEX/Interest Expense			9.8x			5.0x			0.3x

Income and Cashflow Analysis

					Six Months Ended						Fiscal Years Ended
		LTM
		May-03			May-03			May-02			Nov-02			Nov-01
Profitability & Cost Ratios (as % of Revenue)
	Gross Margin		27.3	%		29.1	%		24.8	%		25.4	%		19.5	%
	S,G & A		17.1	%		20.1	%		22.2	%		18.1	%		22.1	%
	Operating Income		10.2	%		8.9	%		2.5	%		7.3	%		-2.6	%
	Pre-Tax		8.8	%		7.6	%		-0.4	%		5.3	%		-6.3	%
	EBIT		10.0	%		8.6	%		1.6	%		6.8	%		-2.5	%
	EBITDA		12.4	%		11.5	%		4.1	%		9.1	%		1.6	%
	Normalized Net Income to Common		8.8	%		7.6	%		-0.4	%		5.2	%		-6.9	%
	Reported Net Income		8.8	%		7.6	%		-0.4	%		5.2	%		-21.9	%
	CAPEX		1.3	%		0.0	%		0.0	%		1.3	%		0.5	%
Period Growth Rates
	Revenue					0.9	%					0.1	%
	EBIT					453.2	%					-368.2	%
	EBITDA					184.4	%					465.3	%

Notes

Unusual expense includes loss on inventory disposition and asset impairment writedown

Other Analysis

Company Description

Art’s-Way Manufacturing Co., Inc. manufactures specialized farm machinery under its own and private labels. Equipment manufactured by the Company under its own label includes: portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations; a high bulk mixing wagon to mix animal feeds containing silage, hay, and grain; a line of mowers and stalk shredders; minimum till seed bed preparation equipment; sugar beet and potato harvesting equipment; and a line of land maintenance equipment, edible bean equipment, and grain drill equipment. Art’s-Way labeled products are sold by farm equipment dealers throughout the United States.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 76

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Gencor Industries, Inc. Overview ($ in thousands, except per share)

Company Information

Name	Gencor Industries, Inc.	Address	5201 N. Orange Blossom Trail
Symbol	GNCI	City, State Zip	Orlando, FL 32810
Latest Fiscal YE	30-Sep-02	Telephone	(407) 290-6000
Latest Rprt Per	30-Jun-03	Website	http://www.gencor.com/

Market Information

As of Date		3-Oct-03		Market Cap	$	21,271
	Exchange	OTC		Total Invested Capital (TIC)	$	36,730
	Stock Price	$	2.45	Enterprise Value (EV)	$	20,617
	52 Week High	$	3.45
	52 Week Low	$	0.75	Insider Ownership		25.00	%
	Avg. Daily Volume (000’s)		5	Institutional
	Beta		0.02	% Owned		0.00	%
	Shares Outstanding (000’s)		8,682	Number of Institutions		-

Valuation Analysis

		Multiple of
		Market Cap		TIC		EV
Latest Twelve Months
	Revenue		0.33x		0.57x		0.32x
	EBIT		8.93x		15.43x		8.66x
	EBITDA		6.46x		11.15x		6.26x
	Normalized Net Income	na		na		na
	Basic Normalized EPS	na		na		na
Projected
	Sep-03 Mean Revenue		0.38x		0.66x		0.37x
	Sep-04 Mean Revenue		0.42x		0.72x		0.40x
	Sep-03 Mean EBITDA		7.71x		13.32x		7.48x
	Sep-04 Mean EBITDA		4.87x		8.41x		4.72x
	Sep-03 Mean EPS	na		na		na
	Sep-04 Mean EPS	na		na		na
Most Recent Filing
	Assets		0.38x		0.66x		0.37x
	Common Equity		1.65x	na		na
	Tangible Common Equity		1.70x	na		na

Mean Consensus Estimates

Year Ending	# Ests		Revenue		EBITDA		EPS
September-03	na		$	55,843	$	2,758	$	-
September-04	na		$	51,014	$	4,370	$	-
LT Growth		na		na		na		na

Income and Cashflow Statement Data

							Nine Months Ended						Fiscal Years Ended
				LTM
				Jun-03			Jun-03			Jun-02			Sep-02			Sep-01
Revenue				$	64,651		$	48,324		$	51,158		$	67,485		$	71,134
	Cost of Revenue				48,344			35,591			38,179			50,932			53,270
			Gross Profit		16,307			12,733			12,979			16,553			17,864
	Selling, General & Administrative				12,108			9,170			9,553			12,491			14,311
	Other Operating				1,710			1,309			1,300			1,701			2,351
			Operating Income		2,489			2,254			2,126			2,361			1,202
	Interest Income / (Expense), net				(1,655	)		(1,143	)		(1,619	)		(2,131	)		(476	)
	Other Income / (Expense), net				(108	)		12			28			(92	)		(117	)
			Pre-tax Income		726			1,123			535			138			609
	Taxes				821			1,116			256			(39	)		-
			After-tax Income		(95	)		7			279			177			609
	Minority Interest				-			-			-			-			-
	Equity in Affiliates				-			-			-			-			-
			Normalized Net Income		(95	)		7			279			177			609
	Preferred Dividends				-			-			-			-			-
			Normalized Net Income to Common	$	(95	)	$	7		$	279		$	177		$	609
			Normalized EBIT	$	2,381		$	2,266		$	2,154		$	2,269		$	1,085
Depreciation & Amortization				$	914		$	706		$	1,170		$	1,378		$	4,021
			Normalized EBITDA	$	3,295		$	2,972		$	3,324		$	3,647		$	5,106
			CAPEX	$	169		$	84		$	219		$	304		$	88
			EBITDA - CAPEX	$	3,126		$	2,888		$	3,105		$	3,343		$	5,018
GAAP Operating Cash Flow				$	6,650		$	5,351		$	(515	)	$	784		$	11,441
Basic Reported Weighted Avg Shares Out (000’s)								8,682			8,682			8,682			8,682
			Basic Normalized EPS	$	(0.01	)	$	-		$	0.03		$	0.02		$	0.07
			Basic Reported EPS	$	0.93		$	0.87		$	0.18		$	0.24		$	1.03
Diluted Reported Weighted Avg Shares Out (000’s)								8,682			9,072			9,072			8,682
			Diluted Normalized EPS	$	(0.01	)	$	-		$	0.03		$	0.02		$	0.07
			Diluted Reported EPS	$	0.93		$	0.87		$	0.17		$	0.23		$	1.03
Normalized Reconciliation
	Restructuring/Goodwill Impairment			$	-		$	-		$	(302	)	$	(302	)	$	(5,072	)
	Other Unusual (Expense) Gain Items				11,372			12,228			1,954			1,098			215
	Tax Shelter (Charge) on Unusual Items				(4,122	)		(4,700	)		(578	)		-			-
	Unusual (Exp) Gain Items, net of Taxes				7,250			7,528			1,074			796			(4,857	)
	Accounting Changes, net of Taxes				-			-			-			-			-
	Discontinued Operations, net of Taxes				69			-			172			241			5,695
	Extraordinary Items, net of Taxes				-			-			-			-			7,476
	Total Reconciling Items, net of Taxes			$	7,319		$	7,528		$	1,246		$	1,037		$	8,314
		Reported Income Tax (Benefit)		$	4,943		$	5,816		$	834		$	(39	)	$	-
		Reported Net Income (Loss)		$	8,080		$	7,535		$	1,525		$	2,070		$	8,923
Revenue Breakdown
	Road Construction Equipment			$	64,651		$	48,324		$	51,158		$	67,485		$	71,134
	Other Heavy Construction				-			-			-			-			-
	Other				-			-			-			-			-
				$	64,651		$	48,324		$	51,158		$	67,485		$	71,134
	Road Construction Equipment				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Other Heavy Construction				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Other				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 77

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE COMPANY ANALYSIS

Gencor Industries, Inc. Overview (continued) ($ in thousands, except per share)

Balance Sheet Data

			Jun-03			Sep-02		Sep-01
	Cash & Mkt Securities		$	16,113		$	12,305	$	14,158
	Accounts Receivable			4,390			8,512		8,672
	Inventory			14,156			19,012		23,105
	Other Current Assets			1,115			1,938		2,021
		Total Current Assets		35,774			41,767		47,956
	PPE, net			15,131			15,693		16,774
	Intangibles, net			364			364		379
	Deferred Income Taxes			-			-		-
	Other Assets			4,292			4,360		4,478
		Total Assets	$	55,561		$	62,184	$	69,587
	Accounts Payable		$	6,289		$	9,000	$	8,788
	Accrued Expenses			8,440			9,947		15,513
	Deferred Revenues			-			-		-
	Short Term Debt			5,439			6,264		1,495
	Short Term Capital Leases			-			-		-
	Other Current Liabilities			9,211			4,032		3,875
		Total Current Liabilities		29,379			29,243		29,671
	Other LT Liabilities			3,309			3,309		3,309
	Long Term Debt			10,020			24,337		34,333
	Long Term Capital Leases			-			-		-
	Minority Interests			-			-		-
	Pref Stock (Liq Value)			-			-		-
		Total Liabilities & Pref Stock		42,708			56,889		67,313
	Common Equity			12,853			5,295		2,274
		Total Liabilities & Equity	$	55,561		$	62,184	$	69,587
	Common Shares Outstanding (000’s)			8,682			8,682		8,682
	Cash Value per share		$	1.86		$	1.42	$	1.63
	Common Book Value per share		$	1.48		$	0.61	$	0.26
	Common Tangible Book Value per share		$	1.44		$	0.57	$	0.22
	Total Debt		$	15,459		$	30,601	$	35,828
	Net Debt		$	(654	)	$	18,296	$	21,670
	Total Capitalization		$	28,312		$	35,896	$	38,102
Balance Sheet Analysis
Effectiveness and Efficiency
	A/R Turnover			10.0x			7.9x		8.2x
	Inventory Turnover			2.9x			2.4x		2.3x
	Asset Turnover			1.1x			1.0x		1.0x
	Days Sales Outstanding			36.4			46.5		44.5
	Days Inventory Outstanding			125.2			150.9		158.3
	Days Payable Outstanding			44.9			49.8		45.9
	Normalized Return on Avg Assets			-0.2%			0.3%		na
	Normalized Return on Avg Common Equity			-1.1%			4.7%		na
Financial Strength
	Current Ratio			1.2			1.4		1.6
	Quick Ratio			0.7			0.8		0.8
	Total Debt/Total Capitalization			54.6%			85.2%		94.0%
	Total Debt/TIC			42.1%			83.3%		97.5%
	Total Debt/EBITDA			4.7x			8.4x		7.0x
	Total Debt/EBITDA-CAPEX			4.9x			9.2x		7.1x
	EBITDA/Interest Expense			2.0x			1.7x		10.7x
	EBITDA-CAPEX/Interest Expense			1.9x			1.6x		10.5x

Income and Cashflow Analysis

					Nine Months Ended						Fiscal Years Ended
		LTM
		Jun-03			Jun-03			Jun-02			Sep-02			Sep-01
Profitability & Cost Ratios (as % of Revenue)
	Gross Margin		25.2	%		26.3	%		25.4	%		24.5	%		25.1	%
	S,G & A		18.7	%		19.0	%		18.7	%		18.5	%		20.1	%
	Operating Income		3.8	%		4.7	%		4.2	%		3.5	%		1.7	%
	Pre-Tax		1.1	%		2.3	%		1.0	%		0.2	%		0.9	%
	EBIT		3.7	%		4.7	%		4.2	%		3.4	%		1.5	%
	EBITDA		5.1	%		6.2	%		6.5	%		5.4	%		7.2	%
	Normalized Net Income to Common		-0.1	%		0.0	%		0.5	%		0.3	%		0.9	%
	Reported Net Income		12.5	%		15.6	%		3.0	%		3.1	%		12.5	%
	CAPEX		0.3	%		0.2	%		0.4	%		0.5	%		0.1	%
Period Growth Rates
	Revenue					-5.5	%					-5.1	%
	EBIT					5.2	%					109.1	%
	EBITDA					-10.6	%					-28.6	%

Notes

Unusual expenses include restructuring costs (professional fees and redundancy costs) related to the reorganization of the Company.

Unusual gains for nine months ended June 2003 include cash distributions form Carbontronics investment.

Discontinued operations include sale of the Company’s food equipment manufacturing segments

Other Analysis

Company Description

Gencor Industries, Inc., together with its subsidiaries, is a manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels and environmental control equipment. The Company’s principal core products include asphalt plants, combustion systems and fluid heat transfer systems. The Company’s products are manufactured in two facilities in the United States and two facilities located in the United Kingdom. On September 13, 2000, the Company and certain of its subsidiaries (the Debtors) filed voluntary petitions commencing cases under Chapter 11 of the United States Bankruptcy Code. The Company and certain of its subsidiaries began operating its businesses as debtors-in-possession. On April 13, 2001, the Debtors filed the Amended Plan of Reorganization of Gencor Industries, Inc. (the Amended Plan). The Amended Plan was confirmed on July 11, 2001. The Company emerged from Chapter 11 during the first quarter of 2002.

Sources of information: SEC Edgar filings, Multex, Capital IQ, Yahoo and Commodity Systems.

Page 78

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE TRANSACTION ANALYSIS

• The comparable transaction analysis involves a review of merger, acquisition and asset purchase transactions involving target companies that are in related industries to Gencor.

• The comparable transaction analysis generally provides the widest range of value due to the varying importance of an acquisition to a buyer (i.e., a strategic buyer willing to pay more than a financial buyer) in addition to the potential differences in the transaction process (i.e., competitiveness among potential buyers).

• Information is typically not disclosed for transactions involving a private seller, even when the buyer is a public company, unless the acquisition is deemed to be “material” for the acquirer. As a result, the selected comparable transaction analysis is limited to transactions involving the acquisition of a public company, or substantially all of its assets, or the acquisition of a large private company, or substantially all of its assets, by a public company.

• Capitalink located nine transactions announced since March 2001 involving target companies in related industries to Gencor (the “Comparable Transactions”) and for which detailed financial information was available. Target companies were involved in the manufacture of heavy construction equipment and machinery and were classified under the SIC 353 (construction, mining and materials handling machinery and equipment).

• Based on the information disclosed with respect to the targets in the each of the Comparable Transactions, Capitalink calculated and compared enterprise values as multiples of LTM revenue, LTM EBITDA and total assets.

• A review of the analysis indicates mean enterprise value multiples to LTM revenue and LTM EBITDA of 0.59 times and 8.3 times, respectively. The mean enterprise to total assets multiple was 0.5 times.

• Capitalink determined a range of indicated enterprise values for Gencor by selecting a range of valuation multiples based on the Comparable Transactions, and applying them to the Company’s LTM Revenue and LTM EBITDA as of July 31, 2003.

Page 79

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE TRANSACTION ANALYSIS

• As with the Comparable Company analysis, Gencor’s unique characteristics, smaller size, business concentration, declining revenue growth and limited future growth would suggest the Company be valued below the average of the Comparable Transaction multiples.

• Therefore taking into account those factors, Capitalink selected an appropriate multiple range for the Company as follows:

o Between 0.36 times and 0.41 times LTM revenue.

o Between 5.1 times and 6.0 times LTM EBITDA.

• Based on the selected multiple ranges, Capitalink calculated a range of enterprise values between $17.9 million and $20.6 million for the core business. After deducting net debt of $(1.6) million, dividing by approximately 10.2 million shares outstanding (including ITM options), and applying a 5% discount for the limited voting power of the common stock, Capitalink calculated a range of indicated common stock prices of between $1.87 and $2.07.

• None of the Comparable Transactions are identical to Offer. Accordingly, an analysis of comparable business combinations is not mathematical; rather it involves complex considerations and judgments concerning differences in financial and operating characteristics of the Comparable Transactions and other factors that could affect the respective acquisition values.

Page 80

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE TRANSACTION ANALYSIS

Comparable Transaction Analysis - Indicated Reference Range - Core Business
($ in thousands, except per share)

				Selected Multiple Range						Indicated Common Stock
		Statistic		Low - High		Indicated EV Value		Indicated Equity Value (1)		Share Price (2) (3)
Total Enterprise Value (EV) Multiple
	LTM 7/31/03 Revenue	$	58,950		0.36x - 0.41x	$	21,251 - $23,908	$	22,862 - $25,519	$	2.13 - $2.37
	LTM 7/31/03 EBITDA	$	2,880		5.1x - 6.0x	$	14,702 - $17,280	$	16,313 - $18,891	$	1.52 - $1.76
Indicated Reference Range						$	17,977 - $20,594	$	19,588 - $22,205	$	1.82 - $2.07

(1)	Adjusted for ($1,611) net debt as of July 31, 2003, which includes cash from in the money options/warrants outstanding.
(2)	Based upon and assumes 10,208 shares and in the money options/warrants outstanding.
(3)	In order to reflect its limited voting power, a 5% discount has been applied to the common stock.

Page 81

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
SELECTED COMPARABLE TRANSACTION ANALYSIS

Comparable Transaction Analysis - Core Business
($ in millions)

				TTM					MRQ								TPP
													Total				Multiple						EV Multiple of
											Net		Price		Enterprise		of Net
Announced	Closing		Target/						Total		Tangible		Paid		Value		Tangible									Total
Date	Date	Acquiror	Transaction Description	Revenue		EBITDA			Assets		Equity		TPP (1)		EV (2)		Equity			Revenue			EBITDA			Assets
17-Jul-03	28-Aug-03	The Carlyle Group, Inc.	Kito Corp. (Japan)	$	175.59	na			$	265.52	$	115.40	$	48.98	$	48.98		0.4x			0.28	x	na				0.2x
			Manufactures and markets hoists, cranes and automated warehouses
6-Jan-03	6-Jan-03	K-Tron International, Inc.	Pennsylvania Crusher Corp.		34.76	na			na		na			23.50		23.50	na				0.68		na			na
		(Nasdaq: KTII)	Manufacture crushing machinery
18-Jun-02	9-Aug-02	Sandvik AB	Milacron Inc - Valenite Inc.		200.00	na			na		na			175.00		175.00	na				0.88		na			na
		(OTC: SDVKF)	Produces tools for coal mining
19-Aug-02	5-Nov-02	Berkshire Hathaway Inc.	CTB International Corp.		225.99		35.26		na		na			140.00		180.00	na				0.80			5.1		na
		(NYSE: BRK)	Designer, manufacturer & marketer of mechanized systems used for the grain and poultry industry.
15-Aug-02	3-Oct-02	Federal Signal Corp.	Wittke, Inc. (TSE: WKE)		105.03		8.49		na		na			62.48		62.48	na				0.59			7.4		na
		(NYSE: FSS)	Manufacturer and designer of truck-mounted equipment and parts eg. Truck bodies, street sweepers
17-May-02	30-Aug-02	Terex Corp.	Siemens AG - Demag Mobile Cranes		360.00	na			na		na			146.00		146.00	na				0.41		na			na
		(NYSE: TEX)	Manufactures and distributes telescopic and lattice boom cranes
18-Mar-02	8-Aug-02	Manitowc Co.	Grove Worldwide, Inc.		717.58		(3.14	)		517.84		95.00		73.13		258.68		0.8			0.36		na				0.5
		(NYSE: MTW)	Makes hydraulic cranes, truck-mounted cranes, and aerial work platforms
28-Jun-01	1-Oct-01	Terex Corp.	CMI Corp.		216.37		(5.11	)		176.22		43.12		61.81		156.10		1.4			0.72		na				0.9
		(NYSE: TEX)	Makes equipment for construction and maintenance of highways, city streets, and airport runways
14-Mar-01	16-Aug-01	Washington Mills Co.	Exolon-ESK Co.		50.48		2.45			58.53		29.57		13.75		30.32		0.5			0.60			12.4			0.5
		na	Manufacture and wholesale construction machinery used principally for abrasive, refractory and metallurgical applications
											High		$	175.00	$	258.68		1.4	x		0.88	x		12.4	x		0.9	x
											Mean			82.74		120.12		0.8			0.59			8.3			0.5
											Median			62.48		146.00		0.6			0.60			7.4			0.5
											Low			13.75		23.50		0.4			0.28			5.1			0.2

(1)	Total Price Paid equals common equity value of interest acquired.
(2)	Enterprise Value equals Total Price Paid plus total debt, preferred stock, and minority interests, less cash.

Sources of information: SEC Edgar Filings, Press Releases, CapitalIQ, Multex, Mergerstat, Thomson Financial, & Done Deals.

Page 82

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
ACQUISITION PREMIUMS ANALYSIS

• The acquisition premiums analysis involves the comparison of the premium derived in the Offer to premiums in other transactions where a controlling interest of a public company was acquired. Capitalink reviewed the one-day, five-day and 30-day premiums for all control interest transactions where:

o The transaction was announced on or after January 2000,

o The transaction value is less than or equal to $50.0 million,

o The acquiring party previously had less than 50% shareholding in the target company, and

o The target company is based in the United States.

• Capitalink reviewed approximately 444 transactions that met this criteria and calculated the mean and median of the acquisition premiums. They were 41.6% and 35.5%, for the one day premium, 45.8% and 37.5% for the five day premium, and 53.6% and 42.5% for the 30 day premium.

• Capitalink also identified four transactions announced since March 2000, in which the targets were in related industries to the Company and for which information on premiums paid were available. The mean and median acquisition premiums paid were from 18.9% and 1.3% for the one day premium, 24.0% and 11.1% for the five day premium and 34.7% and 17.8% for the 30 day premium.

• Based on the premiums paid in the scenario set forth above, Capitalink derived an indicated range of per share market values for the Company using the prior one-day, five-day and 30-day share price as of October 3, 2003. Based on the selected multiple ranges, Capitalink calculated a range of indicated common stock share prices of $2.65 to $3.16 per share for Gencor (including Carbontronics).

Page 83

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
ACQUISITION PREMIUMS ANALYSIS

Acquisition Premiums Analysis - Indicated Reference Range
($ in thousands, except per share)

				Selected Multiple Range
							Indicated Common Stock
		Statistic		Low - High			Share Price
Acquisitions Premiums
	Prior One Day	$	2.35		18.9% - 35.5	%	$	2.79 - $3.18
	Prior 5 Day	$	2.30		11.1% - 37.5	%	$	2.55 - $3.16
	Prior 30 Day	$	2.15		17.8% - 42.5	%	$	2.53 - $3.06
Indicated Reference Range							$	2.63 - $3.14

Sources of information: BVMarketdata, Commodity Systems, Inc. and Mergerstat, Inc.

Page 84

Gencor Industries, Inc.	CONFIDENTIAL
VALUATION ANALYSIS ACQUISITION PREMIUMS ANALYSIS

Acquisition Premiums Analysis - Premiums

Acquisition Premiums - All Acquisitions <$50 m (1)

	Acquisition Premium
	1 Day			5 Day			30 Day
High		519.0	%		522.0	%		519.0	%
Mean		41.6	%		45.8	%		53.6	%
Median		35.5	%		37.5	%		42.5	%
Low		-96.0	%		-97.0	%		-98.0	%

Industry Acquisitions

			Acquisition Premium
Date	Acquiror	Target	1 Day			5 Day			30 Day
9/15/2002	Federal Signal Corp	Wittke Inc.		-7.3	%		8.1	%		-7.3	%
6/28/2001	Terex Corp	CMI Corp		10.0	%		14.0	%		43.0	%
3/22/2000	Tuboscope Inc	Varco International Inc		-11.0	%		-4.0	%		-9.0	%
3/16/2000	National-Oilwell Inc	IRI International Corp		84.0	%		78	%		112	%
		High		84.0	%		78.0	%		112.0	%
		Mean		18.9	%		24.0	%		34.7	%
		Median		1.3	%		11.1	%		17.8	%
		Low		-11.0	%		-4.0	%		-9.0	%

(1) Includes 444 control acquisitions (purchases of >50%) from January 2000 with deal value < $50 million.

Page 85

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
PREMIUMS PAID ANALYSIS

• The premiums paid analysis involves the comparison of the Offer to the average closing price of the Company’s common stock over varying time periods prior to October 3, 2003.

• The analysis suggests that for the periods calculated, the Offer represents a premium (10.0% to 63.4%) over the average closing share price for each period. The premium as of October 3, 2003 was 21.3%.

• In addition, the daily premium or discount over the period October 3, 2002 to October 3, 2003 was graphed based on the Offer Consideration. For the full prior one-year period, the Offer Consideration represented a significant premium for most of the prevailing daily share prices.

Page 86

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
PREMIUMS PAID ANALYSIS

Premiums Paid Analysis - Premium Review

Offer Consideration $ 2.8600

		Closing Price		Premium
		per Share		(Discount)
As of October 03, 2003		$	2.4500		16.7	%
Sensitivity Analysis:
	Prior Day Closing Price	$	2.3500		21.7	%
	Prior 5 Trading Day Average Closing Price	$	2.3700		20.7	%
	Prior 10 Trading Day Average Closing Price	$	2.3590		21.2	%
	Prior 20 Trading Day Average Closing Price	$	2.3660		20.9	%
	Prior 30 Trading Day Average Closing Price	$	2.3160		23.5	%
	Prior 60 Trading Day Average Closing Price	$	2.4633		16.1	%
	Prior 90 Trading Day Average Closing Price	$	2.6666		7.3	%
	Prior Six Month Average Closing Price	$	2.2962		24.6	%
	Prior Year Average Closing Price	$	1.7805		60.6	%

Sources of information: Share price data provided by Commodity Systems, Inc.

Page 87

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
Premiums Paid Analysis

Gencor - Daily Premium (Discount)

October 03, 2002 - October 03, 2003

Sources of information: Share price data provided by Commodity Systems, Inc.

Page 88

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
Carbontronics Investment Analysis

• Capitalink performed a scenario analysis to determine an appropriate range of value for the Company’s Carbontronics investment. Utilizing the projected cash flow for Carbontronics (derived as of April 22, 2003), Capitalink set forth a set of seven scenarios by applying a range of confidence factors to determine the projected cash flow received each year.

• Post-tax cash flows were derived and discounted using the Company’s WACC of 17.5% for each of the seven scenarios.

• Capitalink estimated the probability of receiving the cash flow each year based the following information:

o Historical cash flow received,

o Current correspondence with respect to the IRS review on Carbontronics’ records and chemical change issues, suggesting the tax credits (both prior and future) may be at risk.

o Steps taken by the IRS to revoke the synthetic fuel tax credits.

o Notice received of a Tax Event with all distributions being put on hold.

o The Company’s can not currently predict when, and if, there will be any future distributions.

• A pessimistic and neutral range of probabilities were determined and used to weight each of the seven scenarios and derive a range of indicated values of between $7.2 million and $10.2 million. The range of values was divided by the total number of shares outstanding of approximately 10.2 million (including ITM options), to derive a range of indicated values per common stock for Carbontronics of between $0.70 and $1.00 (after taking a 5% discount for the limited voting power of the common stock).

Page 89

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
Carbontronics Investment Analysis

Carbontronics Investment - Indicated Reference Range
($ in thousands, except per share)

			Indicated Common Stock
	Indicated Equity Value		Share Price (1) (2)
Indicated Reference Range	$	7,175 - $10,145	$	0.70 - $0.99

(1)	Based upon and assumes 10,208 shares and in the money options/warrants outstanding.
(2)	In order to reflect its limited voting power, a 5% discount has been applied to the common shares.

Page 90

Gencor Industries, Inc. CONFIDENTIAL

VALUATION ANALYSIS
Carbontronics Investment Analysis

Carbontronics Investment - Analysis
($ in thousands)

Assumptions:
Tax Rate	17.5	%
Discount Rate	35.0	%

																									Pessimistic					Neutral
			Projected (1)
																												Weighted					Weighted
						Fiscal Years Ending December 31,																	Net					Net					Net
			3 Months																				Present		Expected			Present		Expected			Present
			2003			2004			2005			2006			2007			2008			Total		Value (2)		Probabilit			Value		Probabilit			Value
Gencor Cashflow			$	4,171		$	18,305		$	19,026		$	19,759		$	20,505		$	31,325			####
	Scenario One
		% of Cashflow		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%
		Adjusted Cashflow	$	3,128		$	13,729		$	14,270		$	14,819		$	15,379		$	23,494		$	84,818
		After Tax Adjusted Cashflow	$	2,033		$	8,924		$	9,275		$	9,633		$	9,996		$	15,271		$	55,132	$	33,661		0.0	%	$	-		5.0	%	$	1,683
	Scenario Two
		% of Cashflow		25.0	%		25.0	%		50.0	%		50.0	%		100.0	%		100.0	%
		Adjusted Cashflow	$	1,043		$	4,576		$	9,513		$	9,880		$	20,505		$	31,325		$	76,842
		After Tax Adjusted Cashflow	$	678		$	2,975		$	6,183		$	6,422		$	13,328		$	20,361		$	49,947	$	27,177		0.0	%	$	-		5.0	%	$	1,359
	Scenario Three
		% of Cashflow		25.0	%		25.0	%		50.0	%		50.0	%		50.0	%		50.0	%
		Adjusted Cashflow	$	1,043		$	4,576		$	9,513		$	9,880		$	10,253		$	15,663		$	50,927
		After Tax Adjusted Cashflow	$	678		$	2,975		$	6,183		$	6,422		$	6,664		$	10,181		$	33,102	$	19,295		2.5	%	$	828		5.0	%	$	965
	Scenario Four
		% of Cashflow		25.0	%		25.0	%		25.0	%		25.0	%		25.0	%		25.0	%
		Adjusted Cashflow	$	1,043		$	4,576		$	4,757		$	4,940		$	5,126		$	7,831		$	28,273
		After Tax Adjusted Cashflow	$	678		$	2,975		$	3,092		$	3,211		$	3,332		$	5,090		$	18,377	$	11,220		17.5	%	$	3,216		40.0	%	$	4,488
	Scenario Five
		% of Cashflow		25.0	%		20.0	%		15.0	%		10.0	%		5.0	%		0.0	%
		Adjusted Cashflow	$	1,043		$	3,661		$	2,854		$	1,976		$	1,025		$	-		$	10,559
		After Tax Adjusted Cashflow	$	678		$	2,380		$	1,855		$	1,284		$	666		$	-		$	6,863	$	5,084		25.0	%	$	1,716		20.0	%	$	1,017
	Scenario Six
		% of Cashflow		0.0	%		10.0	%		10.0	%		10.0	%		10.0	%		10.0	%
		Adjusted Cashflow	$	-		$	1,831		$	1,903		$	1,976		$	2,051		$	3,133		$	10,892
		After Tax Adjusted Cashflow	$	-		$	1,190		$	1,237		$	1,284		$	1,333		$	2,036		$	7,080	$	4,222		20.0	%	$	1,416		15.0	%	$	633
	Scenario Seven
		% of Cashflow		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
		Adjusted Cashflow	$	-		$	-		$	-		$	-		$	-		$	-		$	-
		After Tax Adjusted Cashflow	$	-		$	-		$	-		$	-		$	-		$	-		$	-	$	-		35.0	%	$	-		10.0	%	$	-
Indicated Value																										100.0	%	$	7,175		100.0	%	$	10,145

(1)	Projections revised and prepared as of April 22, 2003.
(2)	Discounted amounts have been calculated utilizing a mid-year convention.

Sources of information: Company management.

Page 91