PSS World Medical (PSSI) 8-K Results of Operations and Financial Condition

Exhibit 99.2

Financial Supplement

For the First Quarter of Fiscal Year 2009 ending June 27, 2008

PSS World Medical, Inc.

As of June 27, 2008

Current Fiscal Year

(in thousands, except per share data)

	Fiscal 2009
	Q1
Net Sales	$	472,215
Cost of Goods Sold		333,283
Gross Profit		138,931
General & Administrative Expenses		89,580
Selling Expenses		31,266
Income from operations		18,085
Interest Expense		(1,733	)
Interest & Investment Income		122
Other Income		608
Income from Operations before Income Taxes		17,082
Provision for Income Taxes		6,766
Net Income	$	10,317
Earnings per share - Basic:
Net Income	$	0.17
Earnings per share - Diluted:
Net Income	$	0.17
WASO - Basic		61,003
WASO - Diluted		61,723
Net Sales by Segment:
Physician Business	$	331,386
Elder Care Business		140,406
Corporate Shared Services		423
	$	472,215
Billing Days:		64
Net Sales Per Billing Day:
Physician Business	$	5,178
Elder Care Business		2,194
Corporate Shared Services		7
	$	7,378

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of June 27, 2008

(in thousands, except per share data)

	Fiscal 2006															Fiscal 2007															Fiscal 2008
	Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total
Net Sales (1)	$	387,129		$	385,819		$	423,781		$	422,688		$	1,619,417		$	413,135		$	427,059		$	458,421		$	443,024		$	1,741,639		$	438,910		$	457,930		$	465,208		$	493,744		$	1,855,791
Cost of Goods Sold		276,654			273,512			303,707			298,219			1,152,092			293,233			303,203			335,186			310,007			1,241,629			311,227			325,390			330,215			347,289			1,314,120
Gross Profit		110,475			112,307			120,074			124,469			467,325			119,902			123,856			123,235			133,017			500,010			127,683			132,540			134,993			146,455			541,672
General & Administrative Expenses (2)		70,337			69,279			72,053			75,639			287,308			73,664			73,391			75,222			78,423			300,700			83,600			77,315			79,370			83,688			323,973
Selling Expenses		25,774			26,217			27,469			28,148			107,608			27,498			28,878			30,140			30,307			116,823			29,551			30,763			31,509			33,473			125,295
Income from operations		14,364			16,811			20,552			20,682			72,409			18,740			21,587			17,873			24,287			82,487			14,532			24,462			24,115			29,294			92,403
Interest Expense		(1,509	)		(1,358	)		(1,561	)		(1,456	)		(5,884	)		(1,406	)		(1,336	)		(1,320	)		(1,284	)		(5,346	)		(1,358	)		(1,533	)		(1,811	)		(2,071	)		(6,773	)
Interest & Investment Income		99			111			75			138			423			101			282			426			385			1,194			528			114			26			23			691
Other Income		457			1,750			435			504			3,146			469			429			517			591			2,006			544			546			833			5,361			7,284
Income from Continuing Operations before Income Taxes		13,411			17,314			19,501			19,868			70,094			17,904			20,962			17,496			23,979			80,341			14,246			23,589			23,163			32,608			93,605
Provision for Income Taxes		5,271			6,529			7,080			6,957			25,837			6,949			8,187			6,376			8,348			29,860			5,559			9,106			9,001			13,165			36,831
Income from Continuing Operations		8,140			10,785			12,421			12,911			44,257			10,955			12,775			11,120			15,631			50,481			8,687			14,483			14,162			19,442			56,775
Net (Loss) Income	$	8,140		$	10,785		$	12,421		$	12,911		$	44,257		$	10,955		$	12,775		$	11,120		$	15,631		$	50,481		$	8,687		$	14,483		$	14,162		$	19,442		$	56,775
Earnings (loss) per share - Basic:
Income from Continuing Operations	$	0.13		$	0.16		$	0.19		$	0.19		$	0.67		$	0.16		$	0.19		$	0.17		$	0.23		$	0.75		$	0.13		$	0.22		$	0.22		$	0.31		$	0.88
Net (Loss) Income	$	0.13		$	0.16		$	0.19		$	0.19		$	0.67		$	0.16		$	0.19		$	0.17		$	0.23		$	0.75		$	0.13		$	0.22		$	0.22		$	0.31		$	0.88
Earnings (loss) per share - Diluted:
Income from Continuing Operations	$	0.12		$	0.16		$	0.19		$	0.19		$	0.66		$	0.16		$	0.18		$	0.16		$	0.23		$	0.73		$	0.13		$	0.22		$	0.22		$	0.31		$	0.86
Net (Loss) Income	$	0.12		$	0.16		$	0.19		$	0.19		$	0.66		$	0.16		$	0.18		$	0.16		$	0.23		$	0.73		$	0.13		$	0.22		$	0.22		$	0.31		$	0.86
WASO - Basic		64,877			65,392			65,779			66,546			65,643			67,310			67,453			67,054			67,059			67,219			66,793			65,806			63,999			62,213			64,703
WASO - Diluted		65,860			66,487			66,931			68,062			66,887			68,947			69,478			69,458			69,419			69,325			68,765			67,067			65,756			63,152			66,184
Net Sales by Segment:
Physician Business	$	250,544		$	255,422		$	290,010		$	290,844		$	1,086,820		$	284,438		$	300,813		$	329,160		$	313,109		$	1,227,520		$	306,245		$	320,171		$	326,520		$	355,749		$	1,308,685
Elder Care Business		136,585			130,397			133,771			131,844			532,597			128,697			126,246			129,261			129,915			514,119			132,664			137,759			138,688			137,995			547,106
	$	387,129		$	385,819		$	423,781		$	422,688		$	1,619,417		$	413,135		$	427,059		$	458,421		$	443,024		$	1,741,639		$	438,910		$	457,930		$	465,208		$	493,744		$	1,855,791
Billing Days:		64			63			62			64			253			64			63			62			64			253			64			63			62			64			253
Net Sales Per Billing Day:
Physician Business	$	3,915		$	4,054		$	4,678		$	4,544		$	4,296		$	4,444		$	4,775		$	5,309		$	4,892		$	4,852		$	4,785		$	5,082		$	5,266		$	5,559		$	5,173
Elder Care Business		2,134			2,070			2,158			2,060			2,105			2,011			2,004			2,085			2,030			2,032			2,073			2,187			2,237			2,156			2,162
	$	6,049		$	6,124		$	6,836		$	6,604		$	6,401		$	6,455		$	6,779		$	7,394		$	6,922		$	6,884		$	6,858		$	7,269		$	7,503		$	7,715		$	7,335

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of June 27, 2008

Select^TM Net Sales

(in thousands)

	Fiscal 2004		Fiscal 2005		Fiscal 2006		Fiscal 2007		Fiscal 2008
Consolidated Select Sales	$	121,211	$	137,540	$	157,296	$	185,844	$	234,810

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Segment Information

As of June 27, 2008

(in thousands)

	Three Months Ended
	6/27/2008		6/29/2007
NET SALES:
Physician Business	331,386		306,245
Elder Care Business	140,406		132,664
Corporate Shared Services	423		—
Total Net Sales	472,215		438,910
BILLING DAYS:	64		64
NET SALES PER BILLING DAY:
Physician Business	5,178		4,785
Elder Care Business	2,194		2,073
Corporate Shared Services	7		—
Total Net Sales Per Billing Day	7,378		6,858
INCOME FROM OPERATIONS:
Physician Business	22,209		18,516
Elder Care Business	5,454		4,586
Corporate Shared Services	(9,578	)	(8,570	)
Total Income from operations	18,085		14,532
DEPRECIATION:
Physician Business	1,840		2,077
Elder Care Business	1,182		1,145
Corporate Shared Services	1,753		1,377
Total Depreciation	4,775		4,599
AMORTIZATION OF INTANGIBLE AND OTHER ASSETS:
Physician Business	740		781
Elder Care Business	581		647
Corporate Shared Services	22		29
Total amortization of intangible and other assets	1,344		1,458
PROVISION FOR DOUBTFUL ACCOUNTS:
Physician Business	483		604
Elder Care Business	1,364		346
Total provision for doubtful accounts	1,847		950
INTEREST EXPENSE:
Physician Business	1,013		1,072
Elder Care Business	1,974		1,959
Corporate Shared Services	(1,254	)	(1,673	)
Total interest expense	1,733		1,358
INTEREST AND INVESTMENT INCOME:
Elder Care Business	15		3
Corporate Shared Services	107		525
Total interest and investment income	122		528
PROVISION (BENEFIT) FOR INCOME TAXES:
Physician Business	8,559		6,967
Elder Care Business	1,377		1,029
Corporate Shared Services	(3,170	)	(2,437	)
Total provision for income taxes	6,766		5,559

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Current Fiscal Year Balance Sheet

(in thousands)

Consolidated

	As of 6/27/08
ASSETS
Cash	29,840
Accounts Receivable, net	227,661
Inventory, net	192,707
Deferred Tax Assets	8,525
Other Current Assets	26,147
Total Current Assets	484,880
Property and Equipment, net	91,881
Intangibles, net	25,738
Goodwill	112,320
Other Long-Term Assets	81,977
Total Long-Term Assets	311,916
Total Assets	796,796
LIABILITIES & EQUITY
Accounts Payable	128,656
Accrued Expenses	38,055
Current Maturities of Long-Term Debt	200,780
Other Current Liabilities	8,102
Total Current Liabilities	375,592
Long-Term Debt	706
Deferred Tax Liability Non-Current	1,668
Other Long-Term Liabilities	66,957
Total Long-Term Liabilities	69,331
Total Liabilities	444,924
Total Equity	351,872
Total Liabilities & Equity	796,796

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Balance Sheet Trend

(in thousands)

Consolidated

	Fiscal 2006				Fiscal 2007				Fiscal 2008
ASSETS	Jun-05	Sep-05	Dec-05	Mar-06	Jun-06	Sep-06	Dec-06	Mar-07	Jun-07	Sep-07	Dec-07	Mar-08
Cash	23,836	17,466	26,651	23,867	27,784	45,678	54,904	46,658	23,954	17,041	15,031	21,122
Accounts Receivable, net	208,642	213,585	207,659	208,964	206,405	225,536	219,822	222,776	222,699	232,282	224,282	237,248
Inventory, net	132,684	136,450	167,407	173,458	170,612	172,127	186,193	174,130	187,499	188,087	214,256	190,846
Deferred Tax Assets	29,113	20,183	14,298	12,959	11,181	9,042	7,379	8,776	8,987	9,319	9,175	10,488
Other Current Assets	22,182	25,822	27,937	33,827	32,876	39,288	37,329	34,434	34,257	27,894	31,611	48,745
Total Current Assets	416,457	413,506	443,952	453,075	448,858	491,671	505,627	486,774	477,396	474,623	494,355	508,449
Property and Equipment, net	84,173	86,840	86,475	87,663	88,214	87,291	85,885	88,627	89,347	89,339	89,897	90,680
Intangibles, net	21,217	34,427	35,395	34,345	33,350	32,343	31,186	29,758	30,280	28,991	27,669	26,305
Goodwill	86,273	103,420	105,452	105,521	106,519	106,819	106,971	107,366	110,993	110,727	110,868	110,679
Investment in available for sale securities	—	—	—	—	—	—	—	—	—	46,147	50,206	—
Other Long-Term Assets	47,315	50,862	53,665	56,371	54,983	54,935	58,063	62,450	98,380	69,856	68,580	78,713
Total Long-Term Assets	238,978	275,549	280,987	283,900	283,066	281,388	282,105	288,201	329,000	345,060	347,220	306,377
Total Assets	655,435	689,055	724,939	736,975	731,924	773,059	787,732	774,975	806,396	819,683	841,575	814,826
	Fiscal 2006				Fiscal 2007				Fiscal 2008
LIABILITIES & EQUITY	Jun-05	Sep-05	Dec-05	Mar-06	Jun-06	Sep-06	Dec-06	Mar-07	Jun-07	Sep-07	Dec-07	Mar-08
Accounts Payable	115,455	118,953	141,622	139,227	122,449	145,767	162,338	131,330	144,572	149,827	161,728	135,930
Accrued Expenses	26,660	33,196	30,413	34,499	27,748	34,827	31,670	37,224	33,099	33,274	34,350	46,056
Current Maturities of Long-Term Debt (1)	25,679	27,786	25,788	509	517	1,655	152,154	2,238	2,132	32,129	33,660	220,987
Other Current Liabilities	12,661	11,883	11,837	13,639	12,490	13,917	10,730	11,440	15,267	15,000	15,846	11,969
Total Current Liabilities	180,455	191,818	209,660	187,874	163,204	196,166	356,892	182,232	195,070	230,230	245,584	414,942
Long-Term Debt	151,192	151,113	150,981	150,855	150,725	150,616	460	150,675	150,527	150,449	150,839	725
Other Long-Term Liabilities	35,870	41,179	43,509	49,433	54,274	57,781	62,302	61,207	70,414	66,788	67,133	64,130
Total Long-Term Liabilities	187,062	192,292	194,490	200,288	204,999	208,397	62,762	211,882	220,941	217,237	217,972	64,855
Total Liabilities	367,517	384,110	404,150	388,162	368,203	404,563	419,654	394,114	416,011	447,467	463,556	479,797
Total Equity	287,918	304,945	320,789	348,813	363,721	368,496	368,078	380,861	390,385	372,216	378,019	335,029
Total Liabilities & Equity	655,435	689,055	724,939	736,975	731,924	773,059	787,732	774,975	806,396	819,683	841,575	814,826

(1) During the first quarter of fiscal year 2009, the Company corrected the classification of the Company’s $150 million 2.25% senior convertible notes at March 28, 2008 from long-term debt to short-term debt.

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Unaudited Operating Highlights

Current Fiscal Year

(in millions)

	Three Months Ended
	June 27, 2008			June 29, 2007
Net Sales:
Physician Business	$	331.4		$	306.2
Elder Care Business		140.4			132.7
Corporate Shared Services		0.4			—
Total Net Sales	$	472.2		$	438.9
Income from Operations:
Physician Business	$	22.2		$	18.5
Elder Care Business		5.5			4.6
Corporate Shared Services		(9.6	)		(8.6	)
Total income from operations	$	18.1		$	14.5
EBITDA (a)	$	24.8		$	21.1
Income from operations, as a percentage of net sales		3.8	%		3.3	%
Consolidated Return on Committed Capital (“ROCC”) (b)		20.4	%		18.2	%
Billing Days		64			64
Net Sales Per Billing Day (in thousands):
Physician Business	$	5,178		$	4,785
Elder Care Business		2,194			2,073
Corporate Shared Services		7			—
Total Net Sales Per Billing Day	$	7,378		$	6,858
Net Sales Per Billing Day Growth Rate:
Physician Business		8.2	%
Elder Care Business		5.8	%
Total Net Sales Per Billing Day Growth Rate		7.6	%
	Annualized
	June 27, 2008			June 29, 2007
DSO (c)
Physician Business		41.0			41.8
Elder Care Business		49.9			51.7
DOH (d)
Physician Business		52.2			48.4
Elder Care Business		53.1			56.9
DIP (e)
Physician Business		41.1			43.8
Elder Care Business		28.1			27.8
Cash Conversion Days (f)
Physician Business		52.1			46.4
Elder Care Business		74.9			80.7
	As of
	June 27, 2008			June 29, 2007
Operational working capital (g)	$	291.7		$	265.6
Net Debt:
Bank debt	$	50.0		$	1.4
Other debt		1.5			1.3
Convertible senior notes		150.0			150.0
Less: Cash and cash equivalents		(29.8	)		(24.0	)
Net Debt	$	171.7		$	128.7

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

EBITDA Calculation

Current Fiscal Year

(in thousands)

		Fiscal 2009
		Q1
Net Income		$	10,317
Plus: Interest expense			1,733
Less: Interest and investment income			(122	)
Plus: Provision for income taxes	��		6,766
Plus: Depreciation			4,775
Plus: Amortization of intangible assets			1,344
EBITDA		$	24,813

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

EBITDA Calculation

(in thousands)

	Fiscal 2006															Fiscal 2007															Fiscal 2008
	Q1			Q2			Q3			Q4			Total FY 2006			Q1			Q2			Q3			Q4			Total FY 2007			Q1			Q2			Q3			Q4			Total FY 2008
Income from Continuing Operations	$	8,140		$	10,785		$	12,421		$	12,911		$	44,257		$	10,955		$	12,775		$	11,120		$	15,631		$	50,481		$	8,687		$	14,483		$	14,162		$	19,442		$	56,775
Plus: Interest expense		1,509			1,358			1,561			1,456			5,884			1,406			1,336			1,320			1,284			5,346			1,358			1,533			1,811			2,071			6,773
Less: Interest and investment income		(99	)		(111	)		(75	)		(138	)		(423	)		(101	)		(282	)		(426	)		(385	)		(1,194	)		(528	)		(114	)		(26	)		(23	)		(691	)
Plus: Provision for income taxes		5,271			6,529			7,080			6,957			25,837			6,949			8,187			6,376			8,348			29,860			5,559			9,106			9,001			13,165			36,831
Plus: Depreciation		3,316			3,468			3,673			3,475			13,932			4,094			4,145			4,215			4,296			16,750			4,595			4,758			4,672			4,682			18,707
Plus: Amortization of intangible assets		1,361			1,389			1,677			1,871			6,298			1,505			1,472			1,468			1,463			5,908			1,458			1,406			1,362			1,360			5,586
EBITDA	$	19,498		$	23,418		$	26,337		$	26,532		$	95,785		$	24,808		$	27,633		$	24,073		$	30,637		$	107,151		$	21,128		$	31,172		$	30,983		$	40,697		$	123,980

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Return on Committed Capital (ROCC)

Current Fiscal Year

(in thousands)

Consolidated

	Fiscal 2009
	Q1
Quarterly Average Committed Capital (1)	392,048
Committed Capital - Current Quarter	385,462
Committed Capital - Previous Quarter	398,635
Return on Committed Capital - Quarterly (2)	20.4	%
Return:
Net Income	10,317
Add:
Provision for Income Taxes	6,766
Interest Expense	1,733
Amortization	1,344
Interest and Investment Income	(122	)
	20,037
Committed Capital:
Total Assets	796,796
Less assets excluded:
Cash	(29,840	)
Goodwill and Intangibles, net	(138,058	)
Total Liabilities	(444,924	)
Plus liabilities excluded:
Current debt	200,780
Long-term debt	706
	385,462

(1) Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two.

(2) Return on Committed Capital equals Return divided by Committed Capital. Quarterly calculations are annualized.

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Return on Committed Capital (ROCC)

(in thousands)

Consolidated

	Fiscal 2006										Fiscal 2007										Fiscal 2008
	Q1		Q2		Q3		Q4		Total FY 2006		Q1		Q2		Q3		Q4		Total FY 2007		Q1		Q2		Q3		Q4		Total FY 2008
Quarterly Average Committed Capital (1)	316,837		322,662		325,748		330,989				340,070		341,619		331,779		338,812				363,905		387,926		403,493		403,793
Annual Average Committed Capital (2)									321,764										341,411										374,314
Committed Capital - Current Quarter	322,976		322,347		329,148		332,830				347,310		335,927		327,631		349,992				377,817		398,035		408,951		398,635
Committed Capital - Previous Quarter	310,697		322,976		322,347		329,148				332,830		347,310		335,927		327,631				349,992		377,817		398,035		408,951
Committed Capital - Current Year End									332,830										349,992										398,635
Committed Capital - Previous Year End									310,697										332,830										349,992
Return on Committed Capital - Quarterly (3)	20.4	%	24.7	%	27.8	%	27.9	%			24.4	%	27.5	%	23.9	%	31.1	%			18.2	%	27.2	%	26.1	%	35.7	%
Return on Committed Capital - Annual									25.4	%									26.5	%									28.1	%
Return:
Income from Continuing Operations before Extraordinary Loss	8,140		10,785		12,421		12,911		44,257		10,955		12,775		11,120		15,631		50,481		8,687		14,483		14,162		19,442		56,775
Add:
Provision for Income Taxes	5,271		6,529		7,080		6,957		25,837		6,949		8,187		6,376		8,348		29,860		5,559		9,106		9,001		13,165		36,831
Interest Expense	1,509		1,358		1,550		1,467		5,884		1,406		1,336		1,320		1,284		5,346		1,358		1,533		1,811		2,071		6,773
Amortization	1,361		1,389		1,677		1,871		6,298		1,500		1,477		1,469		1,462		5,908		1,458		1,406		1,362		1,360		5,587
Interest and Investment Income	(99	)	(111	)	(64	)	(149	)	(423	)	(101	)	(282	)	(426	)	(385	)	(1,194	)	(528	)	(114	)	(26	)	(23	)	(691	)
	16,182		19,950		22,664		23,057		81,853		20,709		23,493		19,859		26,340		90,401		16,534		26,414		26,310		36,016		105,274
Committed Capital:
Total Assets	655,435		689,055		724,939		736,975		736,975		731,924		773,059		787,732		774,975		774,975		806,396		819,683		841,575		814,825		814,825
Less assets excluded:
Cash	(23,836	)	(17,466	)	(26,651	)	(23,867	)	(23,867	)	(27,784	)	(45,678	)	(54,904	)	(46,658	)	(46,658	)	(23,954	)	(17,041	)	(15,031	)	(21,122	)	(21,122	)
Goodwill and Intangibles, net	(107,490	)	(137,847	)	(140,847	)	(139,866	)	(139,866	)	(139,869	)	(139,162	)	(138,157	)	(137,124	)	(137,124	)	(141,273	)	(139,718	)	(138,537	)	(136,984	)	(136,984	)
DTA from sale of Imaging Business	(10,487	)	(6,184	)	(912	)	(3,614	)	(3,614	)	—								—
Total Liabilities	(367,517	)	(384,110	)	(404,150	)	(388,162	)	(388,162	)	(368,203	)	(404,563	)	(419,654	)	(394,114	)	(394,114	)	(416,011	)	(447,467	)	(463,556	)	(479,797	)	(479,797	)
Plus liabilities excluded:
Current debt	25,679		27,786		25,788		509		509		517		1,655		152,154		2,238		2,238		2,132		32,129		33,660		70,987		70,987
Long-term debt	151,192		151,113		150,981		150,855		150,855		150,725		150,616		460		150,675		150,675		150,527		150,449		150,839		150,725		150,725
	322,976		322,347		329,148		332,830		332,830		347,310		335,927		327,631		349,992		349,992		377,817		398,035		408,951		398,635		398,635

(1) Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two.

(2) Annual Average Committed Capital equals the sum of the committed capital of the most recent two year ends, divided by two.

(3) Return on Committed Capital equals return divided by Committed Capital. Quarterly calculations are annualized.

Numbers may not foot due to rounding differences

PSS WORLD MEDICAL, INC.

Footnotes

(a) EBITDA represents net income plus provision for income taxes, interest expense, depreciation, and amortization of intangible assets, less interest and investment income. Management review EBITDA when evaluating and comparing the performance of each operating segment on a quarterly basis. Management believes EBITDA is an important measure of liquidity.

(b) ROCC equals return divided by average committed capital. Return is annualized for quarterly and year to date calculations. Management review ROCC when evaluating and comparing the performance of each operating segment on a quarterly basis. Management believes ROCC is an important measure of profitability and return.

(c) DSO is average accounts receivable divided by average daily net sales. Average accounts receivable is the sum of accounts receivable, net of the allowance for doubtful accounts, at the beginning and end of the most recent four quarters divided by five. Average daily net sales are net sales for the most recent four quarters divided by 360. Southern Anesthesia & Surgical, Inc. (“SAS”) accounts receivable balance of $1.4 million as of September 30, 2005, has been excluded from the Fiscal Year 2006 calculation.

(d) DOH is average inventory divided by average daily cost of goods sold (“COGS”). Average inventory is the sum of inventory at the beginning and end of the most recent four quarters divided by five. Average daily COGS is quarterly COGS for the most recent four quarters divided by 360. SAS inventory balance of $3.9 million as of September 30, 2005, has been excluded from the Fiscal Year 2006 calculation.

(e) DIP is average accounts payable divided by average daily COGS. Average accounts payable is the sum of accounts payable at the beginning and end of the most recent four quarters divided by five. SAS accounts payable balance of $3.8 million as of September 30, 2005, has bee excluded from the Fiscal Year 2006 calculation.

(f) Cash Conversion Days is the sum of DSO and DOH less DIP.

(g) Operational working capital equals accounts receivable plus inventory minus accounts payable.