SCHEDULE D - DISCOUNTED FUTURE RETURNS APPROACH BIOTECHNICA INTERNATIONAL, INC. Dividend Discount Model Actual For the Years Ended June 30, 5 Yr. FORECASTED INCOME STATEMENT 6/30/98 1999 2000 2001 2002 2003 CAGR ------------------------------------------------------------------------------- -------- Net sales $21,341,000 $22,835,000 $24,433,000 $26,143,000 $27,973,000 $29,931,000 7.00% Cost of sales 14,307,000 14,386,000 15,393,000 16,470,000 17,623,000 18,857,000 5.68% ------------------------------------------------------------------------------- -------- Gross profit 7,034,000 8,449,000 9,040,000 9,673,000 10,350,000 11,074,000 9.50% 33% 37% 37% 37% 37% 37% Operating expenses: Sales and marketing 4,709,000 4,874,000 5,045,000 5,222,000 5,405,000 5,594,000 3.50% Warehouse and distribution 1,327,000 1,420,000 1,519,000 1,625,000 1,739,000 1,861,000 7.00% General and administrative 2,679,000 2,679,000 2,679,000 2,679,000 2,679,000 2,679,000 0.00% Amortization of goodwill 499,000 499,000 499,000 499,000 499,000 499,000 0.00% ------------------------------------------------------------------------------ -------- 9,214,000 9,472,000 9,742,000 10,025,000 10,322,000 10,633,000 2.91% Operating income (loss) (2,180,000) (1,023,000) (702,000) (352,000) 28,000 441,000 nmf Interest expense (966,000) (800,000) (800,000) (800,000) (800,000) (800,000) -3.70% Other income (expenses) 150,000 200,000 200,000 200,000 200,000 200,000 5.92% ------------------------------------------------------------------------------- -------- (816,000) (600,000) (600,000) (600,000) (600,000) (600,000) -5.96% Net loss before taxes (2,996,000) (1,623,000) (1,302,000) (952,000) (572,000) (159,000) -44.41% Income tax expense (benefit) 0 0 0 0 0 0 0.00% ------------------------------------------------------------------------------- -------- Net loss ($2,996,000) ($1,623,000) ($1,302,000) ($952,000) ($572,000) ($159,000) -44.41% ------------------------------------------------------------------------------- -------- OTHER FORECASTED DATA : Depreciation and amortization $1,449,000 $1,499,000 $1,499,000 $1,499,000 $1,499,000 $1,499,000 0.68% Interest expense $966,000 $800,000 $800,000 $800,000 $800,000 $800,000 -3.70% EBITDA ($581,000) $676,000 $997,000 $1,347,000 $1,727,000 $2,140,000 nmf Dividends $0 $0 $0 $0 $0 $0 nmf Capital expenditures $130,000 $400,000 $399,000 $398,000 $397,000 $396,000 24.95% Net proceeds from loans $1,869,000 $0 $0 $0 $0 $0 -100.00% Estimated common stockholders' equity excluding cumulative undeclared preferred dividends 2,469,000 $846,000 ($456,000) ($1,408,000) ($1,980,000) ($2,139,000) nmf Estimated cumulative undeclared preferred dividend 2,425,000 3,100,000 3,775,000 4,450,000 5,125,000 5,800,000 19.05% Estimated net book value 44,000 (2,254,000) (4,231,000) (5,858,000) (7,105,000) (7,939,000) nmf THESE FORECASTS WERE PROVIDED BY MANAGEMENT. NO ASSURANCES CAN BE MADE THAT THESE FORECASTS WILL BE REALIZED.