Contents - Index


Balance Sheet

                             ALASKA LIMB AND BRACE          
             BALANCE SHEET FOR DATE 12/15/1996 AS RUN ON 12/15/1997

  ACCOUNT NAME                                          DEBIT    CREDIT
  ------- --------------------------------------- ------------- -------
ASSETS                                                
   CASH                                                         
   0001100- 0 CASH ON HAND   100                       4,163.68                
   0001101- 0 CASH IN CHECKING   101                 201,990.93                
   0001104- 0 MONEY MARKET-FIRST BUSINESS   104       10,747.40                
   0001105- 0 SPECIAL ACCT  ESCROW   104-1             1,439.79                
      ------------------------------------------- ------------- -------
      TOTAL OF CASH                                  218,341.80                

   ACCOUNTS RECEIVABLE                                          
   0001120- 0 ACCOUNTS RECEIVABLE-TRADE   120        327,116.51                
   0001121- 0 ACCOUNTS RECEIVABLE-SUSPENSE              -898.07                
      ------------------------------------------- ------------- -------
      TOTAL OF ACCOUNTS RECEIVABLE                   326,218.44                

   PREPAIDS                                                     
   0001129- 0 PREPAID INCOME TAX-FEDERAL     129-     11,780.00                
   0001130- 0 PREPAID INCOME TAX - STATE    129-2      5,630.00                
      ------------------------------------------- ------------- -------
      TOTAL OF PREPAIDS                               17,410.00                

   INVENTORY                                                    
   0001135- 0 INVENTORY    130                        33,410.18                
      ------------------------------------------- ------------- -------
      TOTAL OF INVENTORY                              33,410.18                

   EQUIPMENT                                                    
   0001165- 0 EQUIPMENT   165                        111,853.68                
      ------------------------------------------- ------------- -------
      TOTAL OF EQUIPMENT                             111,853.68                

   COMPUTER                                                     
   0001166- 0 COMPUTER   166                          39,016.57                
      ------------------------------------------- ------------- -------
      TOTAL OF COMPUTER                               39,016.57                

   VEHICLES                                                     
   0001167- 0 VEHICLES   167                           5,102.38                
      ------------------------------------------- ------------- -------
      TOTAL OF VEHICLES                                5,102.38                

   LEASEHOLD IMPROVEMENTS                                       
   0001168- 0 LEASEHOLD IMPROVEMENTS   168            55,516.35                
      ------------------------------------------- ------------- -------
      TOTAL OF LEASEHOLD IMPROVEMENTS                 55,516.35                

   ACCUMULATED DEPRECIATION                                     
   0001175- 0 ACCUM  DEPREC - EQUIP   175            -65,145.18                








                          ALASKA LIMB AND BRACE          
             BALANCE SHEET FOR DATE 12/15/1996 AS RUN ON 12/15/1997

  ACCOUNT NAME                                          DEBIT    CREDIT
  ------- --------------------------------------- ------------- -------
ASSETS
    ACCUMULATED DEPRECIATION
   0001176- 0 ACCUM  DEPREC - COMPUTER   176         -12,969.00                
   0001177- 0 ACCUM  DEPREC - VEHICLES   177          -7,495.98                
   0001178- 0 ACCUM  DEPREC - LEASEHOLD IMPROVEME     -2,994.85                
------------------------------------------- ------------- -------------
      TOTAL OF ACCUMULATED DEPRECIATION              -88,605.01                

   GOODWILL                                                     
   0001190- 0 GOODWILL   204                           5,000.00                
      ------------------------------------------- ------------- -------
      TOTAL OF GOODWILL                                5,000.00                

LIABILITIES                                           
   NOTES PAYABLE                                                
   0002225- 0 CURRENT PORTION L-T DEBT   225                 164,639.39
      ------------------------------------------- ------------- -------
      TOTAL OF NOTES PAYABLE                                 164,639.39

   ACCOUNTS PAYABLE                                             
   0002228- 1 ADVANCE PATIENT DEPOSITS                        14,914.92
   0002230- 0 ACCOUNTS PAYABLE-TRADE   230                    31,589.94
   0002231- 0 ACCOUNTS PAYABLE - SUSPENSE                     -2,803.98
      ------------------------------------------- ------------- -------
      TOTAL OF ACCOUNTS PAYABLE                               43,700.88

   ACCRUALS                                                     
   0002236- 0 U C TAXES PAYABLE   236                         -3,959.20
   0002245- 0 SALES TAX WITHHOLDING   245                        642.18
   0002246- 0 FERERAL INCOME TAX   246                        -4,471.91
   0002247- 0 STATE INCOME TAX   247                          -3,154.00
   0002248- 0 PENSION PAYABLE - 401K     245-1               -84,728.91
      ------------------------------------------- ------------- -------
      TOTAL OF ACCRUALS                                      -95,671.84

   NOTES PAYABLE                                                
   0002260- 0 NOTE PAYABLE - SHAREHOLDERS   260              108,736.58
   0002262- 0 LESS CURRENT PORTION   262                    -164,639.39
   0002263- 0 AND OUTSTANDING   302                            7,000.00
      ------------------------------------------- ------------- -------
      TOTAL OF NOTES PAYABLE                                 -48,902.81

------------------------------------------------- ------------- -------
TOTAL OF ALL LIABILITIES                                      63,765.62

EQUITY                                                
   RETAINED EARNINGS                                            









                            ALASKA LIMB AND BRACE          
             BALANCE SHEET FOR DATE 12/15/1996 AS RUN ON 12/15/1997

  ACCOUNT NAME                                          DEBIT    CREDIT
  ------- --------------------------------------- ------------- -------
LIABILITIES
    EQUITY
   0003100- 0 RETAINED EARNINGS  860                         308,604.10
          - 1 CURRENT YEAR EARNINGS                          350,894.67
      ------------------------------------------- ------------- -------
      TOTAL OF RETAINED EARNINGS                             659,498.77

------- --------------------------------------- ------------- ---------TOTAL BALANCE SHEET...... .......... .......     723,264.39  723,264.39                                             
                                                 =========== ==========