1 Exhibit 11 PENWEST, LTD. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Quarter Ended Six Months Ended February 29 February 29 ------------- ---------------- 1996 1995 1996 1995 ---------- ---------- ---------- ---------- PRIMARY: Net income $ 908,000 $2,153,000 $2,656,000 $3,910,000 ========== ========== ========== ========== Weighted average number of shares outstanding 6,770,927 6,682,942 6,700,196 6,738,142 Net effect of dilutive stock options 242,022 343,033 293,181 346,396 ---------- ---------- ---------- ---------- Adjusted shares outstanding 7,012,949 7,025,975 6,993,377 7,084,538 ========== ========== ========== ========== Earnings per share $ 0.13 $ 0.31 $ 0.38 $ 0.55 ========== ========== ========== ==========