OSMONICS, INC. VALUATION AND QUALIFYING ACCOUNTS (In thousands) Years Ended December 31, 1998, 1997 and 1996 Column A Column B Column C Column D Column E Additions Balance Charged Charged Balance At to to at Beginning Cost and Other Deduct- End of Description of Period Expensed Accounts tions Period --------------- --------- -------- -------- ------ ------ Year Ended December 31, 1998: Current Operations: Allowance for Doubtful Accounts $ 888 $ 502 $ 153 $ 486(A) $1,057 Warranty and Start- Up Reserve $1,900 $2,046 - $1,848(B) $2,098 Year Ended December 31, 1997: Current Operations: Allowance for Doubtful Accounts $ 907 $ 139 $ 158(A) $ 888 Warranty and Start- Up Reserve $1,802 $2,343 $2,245(B) $1,900 Discontinued Operations: Warranty Reserve $1,957 $1,957(D) - Year Ended December 31, 1996: Current Operations: Allowance for Doubtful Accounts $1,177 $ 59 $ 329(A) $ 907 Warranty and Start- Up Reserve $1,868 $2,414 $2,480(B) $1,802 Discontinued Operations: Warranty Reserve $1,957 $1,957 (A) Uncollectible accounts charged against allowance. (B) Actual warranty claims and start-up costs charged against reserve. (C) Addition due to acquisition. (D) Company determined that the reserve was no longer required.