Pacific Grove Spice Company

Exhibit 1Pacific Grove Spice CompanyExhibit 1 - Income Statement ($ in millions except for price per share)

Income Statement06/30/0706/30/0806/30/0906/30/1006/30/1106/30/1206/30/1306/30/1406/30/15

Net Sales$46.180$53.107$57.887$68.017$80.940$93.08$105.182$116.751$127.26Cost of Goods Sold26.78430.80233.57539.79047.51254.45261.53168.30074.447Gross Profit Margin19.39622.30524.31228.22733.42838.62943.65048.45252.813

R&D Expense0.7390.8500.9261.0881.2951.4891.6831.8682.036SG&A Expense14.91617.26018.87121.90226.06329.32133.13236.77740.087Earnings Before Interest & Taxes3.7414.1954.5155.2376.0707.8198.8359.80710.690

Interest Expense2.9062.9402.6682.4232.8173.2373.5823.8944.124Earnings Before Income Taxes0.8351.2551.8472.8143.2534.5815.2545.9136.566

Income Taxes0.2250.3390.4990.7600.8791.2371.4181.5971.773 Net Income0.6100.9161.3482.0542.3743.3443.8354.3164.793

Growth rate of sale15.00%9.00%17.50%19.00%15.00%13.00%11.00%9.00%Income tax rate assumed27.00%27.00%27.00%27.00%Price/Earnings Ratio16.0Market Value of Equity$37.990

Common Shares Outstanding1,165,327Price per share$32.60

Note: 2012-2015 are projected data

COGS/Sales58.70%

R&D Expense/Sales1.60%

SG&A Expense/Sales32.20%

Interest ExpensePrime + 5%0.0825

EBIT/Sales0.0810.0790.0780.0770.0750.0840.0840.0840.084

Exhibit 2Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets06/30/0706/30/0806/30/0906/30/1006/30/1106/30/1206/30/1306/30/1406/30/15

Cash$2.325$2.680$2.924$3.440$4.102$4.672$5.279$5.860$6.387Accounts Receivable9.48910.91211.89513.97616.63219.12621.61323.99026.149Inventories6.6977.7018.3949.94711.87813.61315.38317.07518.612Prepaid Expenses0.7700.8400.9100.8280.9691.1171.2621.4011.527 Total Current Assets19.28122.13324.12328.19133.58138.52843.53748.32652.675

Net Property & Equipment *15.20016.00017.30019.10022.40025.15728.42731.55434.395Other Long-Term Assets2.2412.4792.6713.0743.6394.1894.7335.2545.727 Total Assets36.72240.61244.09450.36559.62067.87476.69785.13492.797

Growth rate of assets10.6%8.6%14.2%18.4%13.8%13.0%11.0%9.0%

Liabilities & Owners' Equity06/30/0706/30/0806/30/0906/30/1006/30/1106/30/1206/30/1306/30/1406/30/15

Bank Notes Payable$7.669$8.820$9.613$11.295$13.442$15.492$17.506$19.432$21.181Accounts Payable2.2032.5322.7603.2713.9054.4765.0575.6146.119Current Portion of Long-Term Debt0.9731.0601.1241.2401.4831.6141.7511.8421.869Accrued Expenses0.7710.8840.9651.1291.3451.5451.7461.9382.113 Total Current Liabilities11.61613.29614.46216.93520.17523.12726.06128.82631.282

Long-Term Debt14.60015.89416.86218.60622.24724.20426.25827.61428.028 Total Liabilities26.21629.19031.32435.54142.42247.33152.31956.44059.310

Common Stock6.8816.8816.8816.8816.8816.8816.8816.8816.881Retained Earnings3.6254.5415.8897.94310.31713.66117.49721.81326.606 Total Shareholder Equity10.50611.42212.77014.82417.19820.54324.37828.69433.488

Total Liabilities & Net Worth36.72240.61244.09450.36559.62067.87476.69785.13492.797

* Net property & equipment for all years is calculated as net property & equipment from the prior year, plus capital expenditures in the same year, minus depreciation expense in the same year. Depreciation expense is included in reported operating expenses; it is not broken out separately.

Note: 2012-2015 are projected data

Total Debt$23.242$25.774$27.599$31.141$37.172$41.311$45.516$48.888$51.078

Interest Bearing Debt$23.242$25.774$27.599$31.141$37.172$41.311$45.516$48.888$51.078

Interest Bearing Debt/Total Assets63%63%63%62%62%61%59%57%55%

Equity Multiplier3.503.563.453.403.473.303.152.972.77

Debt/Equity221%226%216%210%216%201%187%170%153%

Times Interest Earned1.291.431.692.162.152.422.472.522.59

Exhibit 3Pacific Grove Spice CompanyExhibit 3 - Capital Budgeting Analysis of Television Program OpportunityInitial Investment Cash FlowsYear 0Equipment-$1,440,000Growth Rate of Sales5.0%5.0%5.0%5.0%Operating Cash FlowsYear 1Year 2Year 3Year 4Year 5

Sales$8,100,000$8,505,000$8,930,250$9,376,763$9,845,601Cost of Goods Sold at 58.5% of sales4,738,5004,975,4255,224,1965,485,4065,759,676 Gross Profit Margin3,361,5003,529,5753,706,0543,891,3564,085,924

Promotion Expense at 11% of sales891,000935,550982,3281,031,4441,083,016General & Administrative Expense760,000798,000837,900879,795923,785Depreciation Expense288,000288,000288,000288,000288,000 Incremental Operating Profit1,422,5001,508,0251,597,8261,692,1181,791,123

Income Taxes at 27%384,075407,167431,413456,872483,603 Incremental Net Income1,038,4251,100,8581,166,4131,235,2461,307,520

+ Depreciation Expense288,000288,000288,000288,000288,000 Incremental Operating Cash Flow1,326,4251,388,8581,454,4131,523,2461,595,520

Yearly Net Working Capital InvestmentYear 1Year 2Year 3Year 4Year 5Additional A/R at 75 Days Sales Outstanding$1,664,384$83,219$87,380$91,749$96,337Additional Inventory at 4 Inventory Turns1,184,62559,23162,19365,30268,568Additional A/P at 30 Days COGS389,46619,47320,44721,46922,543 Total NWC Investment-2,459,543-122,977-129,126-135,582-142,361

Terminal Cash FlowsYear 1Year 2Year 3Year 4Year 5Recovery of NWC$2,989,590

Total Project Cash Flows-$1,440,000-$1,133,118$1,265,881$1,325,287$1,387,664$4,442,748

Internal Rate of Return41.28%

Net Present Value at 20%$1,716,414Net Present Value at 15%$2,405,498Net Present Value at 10%$3,278,174

Exhibit 4Pacific Grove Spice CompanyExhibit 4 - High Country Seasonings Income Statement ($ in millions)

Income Statement06/30/0806/30/0906/30/1006/30/11

Net Sales$15.401$15.919$16.664$17.564Cost of Goods Sold9.88710.28410.73211.329Gross Profit Margin5.5145.6355.9326.235

R&D Expense0.0000.0000.0000.000SG&A Expense4.3594.5534.8165.041Earnings Before Interest & Taxes1.1551.0821.1161.194

Interest Expense0.0570.0720.0600.063Earnings Before Income Taxes1.0981.0101.0561.131

Income Taxes0.2970.2730.2850.306 Net Income0.8010.7370.7710.825

Dividends Paid0.2880.2540.4220.401

Exhibit 5Pacific Grove Spice CompanyExhibit 5 - High Country Seasonings Balance Sheet ($ in millions)

Assets06/30/0806/30/0906/30/1006/30/11

Cash$0.585$0.610$0.639$0.673Accounts Receivable3.1653.2713.4243.609Inventories2.0602.1422.2362.360Prepaid Expenses0.2310.2390.2500.263Total Current Assets6.0416.2626.5496.905

Net Property & Equipment *3.8314.1464.2734.424Other Long-Term Assets0.4620.4770.5000.527Total Assets10.33410.88511.32211.856

Liabilities + Owners' Equity06/30/0806/30/0906/30/1006/30/11

Bank Notes Payable$0.791$0.818$0.856$0.902Accounts Payable0.8130.8450.8820.931Current Portion of Long-Term Debt0.0000.0000.0000.000Accrued Expenses0.2620.2710.2830.299Total Current Liabilities1.8661.9342.0212.132

Long-Term Debt0.0000.0000.0000.000Total Liabilities1.8661.9342.0212.132

Common Stock4.5844.5844.5844.584Retained Earnings3.8844.3674.7165.140Total Shareholder Equity8.4688.9519.3009.724

Total Liabilities & Net Worth10.33410.88511.32211.856

* Net property & equipment for all years is calculated as net property & equipment from the prior year, plus capital expenditures in the same year, minus depreciation expense in the same year. Depreciation expense is included in reported operating expenses; it is not broken out separetely.

Exhibit 6Pacific Grove Spice Company

Exhibit 6 - Industry Information

McCormick & Company* ConAgra Foods** Pacific Grove Spice Co.201020112010201120102011Sales revenue (in millions)$3,336.8$3,440.5$12,014.9$12,303.1$68.0$80.9Net income (in millions)$370.2$386.5$725.8$817.0$2.1$2.4Earnings per share$2.79$2.92$1.63$1.90$1.76$2.04Closing stock price$44.01$49.60$24.02$25.76$25.87$32.60Price/earnings ratio15.817.014.713.614.716.0

Total liabilities (in millions)$1,957.0$1,947.3$6,809.1$6,700.2$35.5$42.4Interest-bearing debt (in millions)$880.3$989.7$3,487.2$3,233.8$31.1$37.2

Book value of equity (in millions)$1,462.7$1,642.1$4,928.9$4,708.5$14.8$17.2

Shares outstanding (in millions)133.1132.4443.6429.71.21.2Market value of equity (in millions)$5,857.7$6,567.0$10,655.3$11,069.1$30.1$38.0

Equity beta coefficient0.500.600.85* McCormick's fiscal year-end is November 30. The 2011 data presents the most recent four quarters of income statement information and the May 31, 2011, balance sheet information.

** ConAgra's fiscal year-end is May 31. The 2011 data presents the full 2011 fiscal year.

Current market interest rates in July of 2011:Long-term U.S. Treasury Bonds4.25%Long-term AA Corporate Bonds5.20%Long-Term BBB Corporate Bonds5.65%

Market Risk Premium, S&P 500 vs. Long-term Treasuries7.00%Prime Interest Rate3.25%