ENGINEERED SUPPORT SYSTEMS, INC. EXHIBIT 11 - STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE Year Ended -------------------------------------- 1998 1997 1996 ---------- ---------- ---------- NET INCOME $5,789,381 $4,638,946 $3,314,208 ========== ========== ========== BASIC EARNINGS PER SHARE Average basic shares outstanding 4,785,335 4,753,265 4,592,858 ========== ========== ========== Net income $1.21 $0.98 $0.72 ===== ===== ===== DILUTED EARNINGS PER SHARE Average basic shares outstanding 4,785,335 4,753,265 4,592,858 Net effect of dilutive stock options<F1> 206,118 201,522 287,086 ---------- ---------- ---------- Average diluted shares outstanding 4,991,453 4,954,787 4,879,944 ========== ========== ========== Net income $1.16 $0.94 $0.68 ========== ========== ========== <FN> <F1> Based on the treasury stock method NOTE: On June 26, 1998, the Company effected a 3-for-2 stock split in the form of a 50% stock dividend. All share and per share amounts included on this schedule reflect this stock split.