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nml t I i'101 IN compeon. It will be expanding to Minneapolis, Milwaukee, and Central and Southern California this yiear., The first two havie no cu�rrient wa�rieholuse compeon. The last two are deerne'd und�er'stored by COST' Management. Lower initial I profits are expected from them. COST should be, facing all of the lea�d�ing warehouse competitors with at least one to two, locations by the end of fiscal 1987, 4$ COST,, naturally', has al�l of the risks normally associated with Voung% companies that are & a 3rowing explosilvely, (overextension of supervision,,, distorted comparisons, maturing data 2n,d people sVsterns, etc.). Stil�l, we remain co�m,fortable with the companiy in, those respects beca�usie of its superior curreiint systems capability, experienced and disciplined management,, and record of performa�nce,. We expect" the Florida warehouses, as a group,, to begin, making a modest profit cointributivon next year, noting that they will represent only, a�biout 19% of foio,tage by 1986 # s fiscal yeair-end. More impo-r1ant, COST's recoird of suiccelissful site selection is 11 # impressive. Of 21 current units* 17 are opera�ting satisfactorily or' above budget, with onl�y one substantially deficient, a record of su�cc,ess almost all merich�ants would envv. 6