UFP Technologies (UFPT)

(r)         Fair Value of Financial Instruments

Cash and cash equivalents, accounts receivable, inventories, prepaid expenses, accounts payable and accrued expenses and payroll withholdings are stated at carrying amounts that approximate fair value because of the short maturity of those instruments.  The carrying amount of the Company’s long-term debt and obligations under capital leases approximates fair value as the interest rate on the debt approximates the Company’s current incremental borrowing rate.

(r)         Fair Value of Financial Instruments

Cash and cash equivalents,
accounts receivable, inventories, prepaid expenses, accounts payable and
accrued expenses and payroll withholdings are stated at carrying amounts that
approximate fair value because of the short maturity of those instruments.  The carrying amount of the Company’s
long-term debt and obligations under capital leases approximates fair value as
the interest rate on the debt approximates the Company’s current incremental
borrowing rate.

(17)     Fair Value of Financial Instruments

Statement of Financial Accounting Standards No. 107, Disclosures About Fair Value of Financial Instruments, defines the fair value of financial instruments as the amount at which the instrument could be exchanged in a transaction between willing parties.

Cash and cash equivalents, accounts receivable, inventories, prepaid expenses, notes payable to bank, accounts payable and accrued expenses and payroll withholdings are stated at carrying amounts that approximate fair value because of the short maturity of those instruments.

Long-term debt and capital lease obligations are subject to interest rates currently offered to the Company; therefore, the historical carrying amount approximates fair value.

F-26

(17)     Fair
Value of Financial Instruments

Statement
of Financial Accounting Standards No. 107, Disclosures
About Fair Value of Financial Instruments, defines the fair value of
financial instruments as the amount at which the instrument could be exchanged
in a transaction between willing parties.

Cash
and cash equivalents, accounts receivable, inventories, prepaid expenses, notes
payable to bank, accounts payable and accrued expenses and payroll withholdings
are stated at carrying amounts that approximate fair value because of the short
maturity of those instruments.

Long-term
debt and capital lease obligations are subject to interest rates currently offered
to the Company; therefore, the historical carrying amount approximates fair
value.

F-26

(17)         Fair Value of Financial Instruments

Statement of Financial Accounting Standards No. 107, Disclosures About Fair Value of Financial Instruments, defines the fair value of financial instruments as the amount at which the instrument could be exchanged in a transaction between willing parties.

Cash and cash equivalents, accounts receivable, inventories, prepaid expenses, notes payable to bank, accounts payable, and accrued expenses and payroll withholdings are

F-26

stated at carrying amounts that approximate fair value because of the short maturity of those instruments.

Long-term debt and capital lease obligations are subject to interest rates currently offered to the Company; therefore, the historical carrying amount approximates fair value.

(18)     Fair Value of Financial Instruments

Statement of Financial Accounting Standards No. 107, Disclosures About Fair Value of Financial Instruments, defines the fair value of financial instruments as the amount at which the instrument could be exchanged in a transaction between willing parties.

Cash and cash equivalents, accounts receivable, inventories, prepaid expenses, notes payable to bank, accounts payable, and accrued expenses and payroll withholdings are stated at carrying amounts that approximate fair value because of the short maturity of those instruments.

Long-term debt and capital lease obligations are subject to interest rates currently offered to the Company; therefore, the historical carrying amount approximates fair value.

(18)     Fair Value of Financial Instruments

Statement of Financial Accounting Standards No. 107, Disclosures About Fair Value of Financial Instruments, defines the fair value of financial instruments as the amount at which the instrument could be exchanged in a transaction between willing parties.

Cash and cash equivalents, accounts receivable, inventories, prepaid expenses, notes payable to bank, accounts payable, and accrued expenses and payroll withholdings are stated at carrying amounts that approximate fair value because of the short maturity of those instruments.

Long-term debt and capital lease obligations are subject to interest rates currently offered to the Company; therefore, the historical carrying amount approximates fair value.