notes to
consolidated
financial
statements

in thousands
except share data

The Company has a $30,000 United States bank line of credit extending through March 30, 1998. Borrowings under the line bear interest at the LIBOR +.75% (7.52% at December 31, 1997) and are unsecured. As of December 31, 1997, the Company had $1,000 of borrowings under this line.

The majority of the Company's foreign subsidiaries maintain bank lines of credit for short-term working capital purposes. These credit lines are supported by standby letters of credit issued by a United States bank, or guarantees issued by the Company to the foreign banks issuing the credit line. Lines of credit bear interest at .5% to 1.5% over the foreign banks' equivalent prime rates. At December 31, 1997 and 1996, the Company was liable for $1,145 and $952, respectively, of borrowings under these lines, and at December 31, 1997 was contingently liable for approximately $16,500 under outstanding standby letters of credit and guarantees related to these lines of credit and other obligations.

In addition, at December 31, 1997 the Company had a $8,271 credit facility with a United Kingdom bank (U.K. facility), secured by a corporate guarantee. The Company was contingently liable under the U.K. facility at December 31, 1997 for $8,271 used to secure customs bonds issued by foreign governments.

At December 31, 1997, the Company was in compliance with all restrictive covenants of these credit lines and the associated credit facilities, including maintenance of certain minimum asset, working capital and equity balances and ratios.