In February 1997, the FASB issued FAS No. 128 "Earnings per Share" (FAS No. 128). FAS No. 128 simplifies the standards for computing earnings per share previously found in Accounting Principles Board (APB) Opinion No. 15 "Earnings per Share" by replacing the presentation of primary earnings per share (EPS) with basic EPS and replacing fully diluted EPS with diluted EPS. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing income available to common shareholders by the weighted average number of common shares and the dilutive common equivalent shares outstanding for the period.

The dilutive effect of all options outstanding has been determined by using the treasury stock method. The weighted average shares outstanding is calculated as follows:

	2001	2000	1999
Basic weighted average shares outstanding	4,494,800	4,472,500	4,420,200
Effect of dilutive common equivalent shares	187,800	127,000	179,900
Diluted weighted average shares outstanding	4,682,600	4,599,500	4,600,100

Options to purchase 842,350 shares of common stock at a weighted average exercise price of $22.95 per share were outstanding as of April 1, 2001, but were not included in the computation of diluted earnings per share because the options' exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive.