1 PENWEST, LTD. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Quarter Ended November 30 --------------------------- 1996 1995 ---------- ---------- PRIMARY: Net income $1,407,000 $1,748,000 ========== ========== Weighted average number of shares outstanding 6,851,257 6,763,208 Net effect of dilutive stock options 141,801 280,252 ---------- ---------- Adjusted shares outstanding 6,993,058 7,043,460 ========== ========== Earnings per share $ 0.20 $ 0.25 ========== ========== FULLY DILUTED: Net income $1,407,000 $1,748,000 ========== ========== Weighted average number of shares outstanding 6,851,257 6,763,208 Net effect of dilutive stock options 141,801 308,166 ---------- ---------- Adjusted shares outstanding 6,993,058 7,071,374 ========== ========== Earnings per share $ 0.20 $ 0.25 ========== ========== 13