INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholders of Alfa International Corp.
We have audited the accompanying consolidated balance sheets of Alfa International Corp. and subsidiary as of
December 31, 1997 and 1996 and the related consolidated statements of operations, changes in stockholders'
equity (deficiency) and cash flows for the years then ended. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards required
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Alfa International Corp. and subsidiary at December 31, 1997 and 1996, and
the results of their operations and their cash flows for the years then ended in conformity with generally accepted
The accompanying consolidated financial statements have been prepared assuming that the Company will
continue as a going concern. As discussed in Note 3 to the consolidated financial statements, the Company's
financial position at December 31, 1997 and results of operations and cash flows to December 31, 1997 raise
substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to
these matters are also described in Note 3.