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I've quickly updated DCF valuation based on 3Q06 results. 
Apologies for how it looks, no time and limited formating skills.
Errors or ommissions are mine!

Suggests intrinsic value of $37.17, margin of safety of 40% yields buy around 
price of $22.29

Some of the take-aways from the web cast:

- 3Q sales up 8% and income up 10%
- Uped full year sales to $109 to $112 million or 16% to 19% over 2005
- 2007 revenue growth estimate of 10% to 15%
- Full year EPS $1.05 to $1.12 (valuation of $19.55 to $20.86 based on 2006 est. P/E)
- Gross margin 70% down from 75%. Full year projected at 70% I think this is 
  pretty darn good for a consumer products company
- $59.7 million in cash and equivalents; current ratio of 4.82
- 3Q domestic sales of Breath Right down 1% - missed execution of A&P which 
  they claim is being fixed.
- 3Q sales of FiberChoice up 38%

Notes to DCF analysis:

- 5 year growth at high end of range, I think they have grown more
  conservative in estimating
- 40% margin of safety if I'm wrong! CNS may struggle with growth with out
  strengthening product pipeline.
- discount rate 11% due to strong financial health

DCF Details:

Common	15,046,000.00	        Discount Rate	11%
Growth 1-5 Years	15.00%	Perpituity Rate	 3%
Growth 6-10 Years	12.50%		
Free Cash Flow (2006 est)	$17,243,000 		

	                  Year 1	   Year 2	   Year 3
Future Cash Flow	$20,691,600 	$24,312,630 	$27,959,525 
Discounted Cash Flow	$18,725,430 	$19,911,656 	$20,722,538 

Total Equity Value	$559,001,047 		

Per Share Value	$37.15 		

Margin of Safety	40%		

Buy Price	$22.29 		

Current Price	$20.60 	26-Jan-06	

2006 Estimated Cash Flow		Estimated EBITDA and EBITDA less CapEx	
Revenues (TTM)	      $ 108,925,000	Operating Inc (EBIT)	$ 5,922,000
Net Income	       $ 16,643,000	Add D&A (est.)	$ 800,000
Add D&A (est.)	          $ 800,000	EBITDA	$ 6,722,000
Cash Flow (est)	       $ 17,443,000	Less CapEx (est)	$ 200,000
Less CapEx (est)	  $ 200,000	EBITDA - CapEx	$ 6,522,000
Free Cash flow (est)   $ 17,243,000		
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