#66. COMNET CORP.

5185 MacArthur Blvd. NW Washington, D.C. 20016 REVENUE: $22.8 million LOSS: $452,719 LOSS PER SHARE: 22 cents DIVIDEND: None ASSETS: $27.5 million STOCKHOLDERS' EQUITY: $11.3 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 300 TOP EXECUTIVES: John Spohler, chairman; Robert S. Bowen, president and chief executive officer. FOUNDED: 1967

DESCRIPTION: Comnet, which last year changed its name from Computer Network Corp., provides a variety of computer services to the federal government and business.

DEVELOPMENTS: Comnet continues to struggle in its effort to regain profitability after reporting back-to-back losses over the last two fiscal years. Results for the year ended March 31 have not been reported, but for the nine months ended Dec. 31, 1985, the company reported a loss of $1.6 million. The company's loss in fiscal 1985, despite a 60 percent gain in revenue, was preceded by an $869,777 million loss in the previous year.

Comnet officials say sales continue to increase and its operating performance is improving as a result of growth in the Group One Software division and the acquisition in September 1984 of Ford Laboratories Inc., a manufacturer of nutritional consumer products based in New Jersey.

In addition, Comnet's new AIM Division, which specializes in laser printing and data services, has expanded its capabilities and services with a move to new and larger facilities near Washington Dulles International Airport in Herndon, Va. #67. IMPERIAL 400 NATIONAL INC.

1000 Wilson Blvd. Arlington, Va. 22209 REVENUE: $20.6 million PROFITS: $1.6 million EARNINGS PER SHARE: $1.68 DIVIDEND: None ASSETS: $38.2 million STOCKHOLDERS' EQUITY: $10.3 million RETURN ON EQUITY: 16.7 percent EXCHANGE: OTC EMPLOYES: 784 TOP EXECUTIVE: William G. Brakefield, president. FOUNDED: 1961

DESCRIPTION: Imperial owns, operates, manages and franchises a network of 62 motor inns, all within the United States.

DEVELOPMENTS: Despite a relatively flat revenue performance in the fiscal year ended Dec. 31, 1985, Imperial 400 managed to nearly triple earnings for the year. Occupancy rates slipped slightly from 51.2 percent to 50.7 percent, but the average revenue per occupied room rose from $29.43 to $30.43.

In fiscal 1985, the company sold properties in Tuscon and Willcox, Ariz., and in Bristol, Pa., Rockford, Ill., and East Hartford, Conn. Construction was completed on a new 146-room motel in Orlando, Fla., and started on a new 212-unit joint venture in Germantown. The joint venture also has acquired a site in Rockville for possible future development.

Subsequent to the close of its fiscal year, Imperial 400 announced the sale of two additional properties, one in Everett, Wash., and the other in Cedar City, Utah. #68. WASHINGTON REAL ESTATE INVESTMENT TRUST

4936 Fairmont Ave. Bethesda, Md. 20814 REVENUE: $19.5 million PROFITS: $12.9 million EARNINGS PER SHARE: $1.58 DIVIDEND: $1.17 ASSETS: $81.8 million STOCKHOLDERS' EQUITY: $66.1 million RETURN ON EQUITY: 16 percent EXCHANGE: Amex EMPLOYES: 14 TOP EXECUTIVES: B. Franklin Kahn, president; Thomas O. Bowersox, first vice president. FOUNDED: 1960

DESCRIPTION: Washington REIT is a self-administered trust whose properties include nine shopping centers, five apartment buildings, four office buildings and five business centers.

DEVELOPMENTS: The operating profits of the trust rebounded in the fiscal year ended Dec. 31 to $12.9 million. Net income for the prior year was $8.4 million. Two new properties were added to the trust's portfolio over the last 12 months, the Jenifer One Shopping Area at the corner of Jenifer Street and Wisconsin Avenue NW and the Fullerton Business Center, a six-acre office complex south of Springfield.

Last November, the trust increased its capitalization with a public offering of 1,125,000 shares of common stock that raised $19 million. Proceeds of the stock offering are earmarked for additional property acquisitions. #69.WEINSCHEL ENGINEERING CO. INC.

1 Weinschel La. Gaithersburg, Md. 20877 REVENUE: $18.8 million PROFITS: $732,158 EARNINGS PER SHARE: $1.20 DIVIDEND: None ASSETS: $15.1 million STOCKHOLDERS' EQUITY: $6.7 million RETURN ON EQUITY: 12.3 percent EXCHANGE: OTC EMPLOYES: 275 TOP EXECUTIVE: Bruno O. Weinschel, chairman and president. FOUNDED: 1952

DESCRIPTION: Weinschel Engineering is engaged in the design and manufacture of microwave components and test and calibration instruments that are marketed throughout the world. The company's products are sold primarily to communications firms, the aerospace and electronics industries, laboratories and government agencies.

DEVELOPMENTS: Despite a modest 8 percent increase in sales in the fiscal year ended Oct. 31, 1985, Weinschel managed a threefold increase in net income over the prior year. The company attributed the dramatic profit performance to ongoing cost-cutting programs and a one-time tax benefit resulting from the dissolution of Weinschel International Sales Corp., an international marketing firm set up in 1972 as a direct international sales corporation (DISC). By dissolving the subsidiary, Weinschel got a $279,000 tax break. The company also reduced administrative overhead and interest expenses.

State and county health officials are in the process of evaluating remedial actions taken by Weinschel to correct suspected carcinogens discovered in drinking water drawn from wells on the company's 20-acre manufacturing and office site in Montgomery County. The possible water contamination has had no effect on company operations, officials said. #70. VM SOFTWARE INC.

2070 Chain Bridge Rd. Suite 355 Vienna, Va. 22180 REVENUE: $18 million PROFITS: $3.1 million EARNINGS PER SHARE: 80 cents DIVIDEND: None ASSETS: $19.9 million STOCKHOLDERS' EQUITY: $14.1 million RETURN ON EQUITY: 30.2 percent EXCHANGE: OTC EMPLOYES: 134 TOP EXECUTIVES: Robert E. Cook, chairman, chief executive officer and treasurer; Richard L. Earnest, president and chief operating officer. FOUNDED: 1981

DESCRIPTION: VM Software develops, markets and supports standard software products for use with the VM computer system, a principal IBM interactive mainframe system. The products allow customers to control and manage data-processing resources more efficiently and to improve productivity. The company's systems perform computer-related tasks that secure and store data, measure the consumption of resources and prepare workload schedules. The company's products and services are marketed in 45 countries.

DEVELOPMENTS: VM Software made an initial offering of stock last May and completed its first year as a publicly held firm with good results. The company reported strong revenue and net income for the year ended Dec. 31 despite the generally sluggish performance of the computer software industry as a whole. The company's revenue climbed 62 percent, and net income was up 74 percent. Management attributes the sharp rise in net income to lower costs for operations and improved sales and marketing efficiencies.

The company's flagship product, the VMCENTER, was enhanced during 1985, and a new product, VMSORT, was introduced. VMCENTER is an integrated software package that combines seven of the company's computer-system functions. VMSORT is a high-speed and convenient system for sorting computer data.

Last October, VM Software announced an agreement with Duquesne Systems Inc. to allow VM Software customers to use Duquesne Systems for data management.

VM also acquired a dealership in Great Britain with responsibility for marketing and systems support of VM Software throughout the United Kingdom. The purchase provides the company with a direct presence in the expanding European market.