-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AUGN1nf1sG7nCLykZ9M7KGcGEMC0maVOTknt6wENqeZ7VhQ0TcCDt6xd1P2j51M0 nIHbJWgRF5BAozGPRR08sg== 0001164073-06-000002.txt : 20060119 0001164073-06-000002.hdr.sgml : 20060119 20060119110659 ACCESSION NUMBER: 0001164073-06-000002 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20060119 DATE AS OF CHANGE: 20060119 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: MEADE INSTRUMENTS CORP CENTRAL INDEX KEY: 0001032067 STANDARD INDUSTRIAL CLASSIFICATION: OPTICAL INSTRUMENTS & LENSES [3827] IRS NUMBER: 952988062 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-52619 FILM NUMBER: 06537161 BUSINESS ADDRESS: STREET 1: 6001 OAK CANYON CITY: IRVINE STATE: CA ZIP: 92618 BUSINESS PHONE: 9494511450 MAIL ADDRESS: STREET 1: 6001 OAK CANYON CITY: IRVINE STATE: CA ZIP: 92618 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: HUMMINGBIRD MANAGEMENT LLC CENTRAL INDEX KEY: 0001164073 IRS NUMBER: 134082842 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 460 PARK AVENUE, 12TH FL CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2125210974 MAIL ADDRESS: STREET 1: 460 PARK AVENUE, 12TH FL CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: MORNINGSIDE VALUE INVESTORS LLC DATE OF NAME CHANGE: 20011226 SC 13D/A 1 mead13da-060119.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 -------------- SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Amendment No. 5 Meade Instruments Corp. ----------------------- (Name of Issuer) Common Stock ------------ (Title of Class of Securities) 583062104 --------- (CUSIP Number) Paul D. Sonkin Hummingbird Management, LLC 460 Park Avenue, 12th Floor New York, New York 10022 ------------------------ (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) January 19, 2006 ------------------ (Date of Event Which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box /_/. Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. - --------------- (1) The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). - ------------------------ --------------------- CUSIP No. 583062104 13D Page 2 of 14 Pages - ------------------------ --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Hummingbird Management, LLC (f/k/a Morningside Value Investors, LLC) IRS No. 13-4082842 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /_/ (b) /X/ - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) /_/ - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 2,778,608 OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 8 SHARED VOTING POWER - 0 - ----------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 2,778,608 ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,778,608 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* /_/ - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13.9% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO ================================================================================ - ------------------------ --------------------- CUSIP No. 583062104 13D Page 3 of 14 Pages - ------------------------ --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Paul D. Sonkin - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / / (b) /X/ - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) /_/ - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 2,801,608 OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 8 SHARED VOTING POWER - 0 - ----------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 2,801,608 ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,801,608 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* /_/ - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO ================================================================================ - ------------------------ --------------------- CUSIP No. 583062104 13D Page 4 of 14 Pages - ------------------------ --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Hummingbird Capital, LLC (f/k/a Morningside Capital, LLC) - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /_/ (b) /X/ - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) /_/ - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 2,778,608 OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 8 SHARED VOTING POWER - 0 - ----------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 2,778,608 ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,778,608 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* /_/ - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13.9% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO ================================================================================ - ------------------------ --------------------- CUSIP No. 583062104 13D Page 5 of 14 Pages - ------------------------ --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Hummingbird Value Fund, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /_/ (b) /X/ - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) /_/ - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 775,581 OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 8 SHARED VOTING POWER - 0 - ----------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 775,581 ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 775,581 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* /_/ - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.9% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* LP ================================================================================ - ------------------------ --------------------- CUSIP No. 583062104 13D Page 6 of 14 Pages - ------------------------ --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Hummingbird Microcap Value Fund, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /_/ (b) /X/ - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) /_/ - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 804,798 OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 8 SHARED VOTING POWER - 0 - ----------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 804,798 ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 804,798 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* /_/ - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 4.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* LP ================================================================================ - ------------------------ --------------------- CUSIP No. 583062104 13D Page 7 of 14 Pages - ------------------------ --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Hummingbird Concentrated Fund, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /_/ (b) /X/ - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) /_/ - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 1,198,229 OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 8 SHARED VOTING POWER - 0 - ----------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 1,198,229 ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,198,229 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* /_/ - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* LP ================================================================================ - ------------------------ --------------------- CUSIP No. 583062104 13D Page 8 of 14 Pages - ------------------------ --------------------- The following constitutes Amendment No. 5 ("Amendment No. 5") to the Schedule 13D filed by the undersigned related to the common stock (the "Common Stock") of Meade Instruments Corp., a Delaware corporation. This Amendment No. 5 amends the Schedule 13D as specifically set forth. Item 4 is hereby amended to include the following: Item 4. On January 19, 2006, Hummingbird sent a letter to the Board of Directors of the Issuer (the "Board") expressing its concerns with the Issuer's disappointing financial performance and its failure to effectively communicate with its stockholders. Hummingbird provided the Board with specific suggestions that it believes would help the Issuer operationally and provide better information to the investment community. A copy of the letter is included in this Schedule 13D as Exhibit B and is incorporated herein by reference. Item 7 is hereby amended to include the following: Item 7. Exhibit B Letter to the Board of Directors, Meade Instrument Corp., dated January 19, 2006. - ------------------------ --------------------- CUSIP No. 583062104 13D Page 9 of 14 Pages - ------------------------ --------------------- SIGNATURES ---------- After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: Janaury 19, 2006 HUMMINGBIRD MANAGEMENT, LLC (f/k/a Morningside Value Investors, LLC) By: /s/ Paul D. Sonkin ------------------------------------ Paul D. Sonkin Managing Member /s/ Paul D. Sonkin ---------------------------------------- PAUL D. SONKIN HUMMINGBIRD VALUE FUND, L.P. By: Hummingbird Capital, LLC By: /s/ Paul D. Sonkin ------------------------------------ Paul D. Sonkin Managing Member HUMMINGBIRD MICROCAP VALUE FUND, L.P. By: Hummingbird Capital, LLC By: /s/ Paul D. Sonkin ------------------------------------ Paul D. Sonkin Managing Member HUMMINGBIRD CONCENTRATED FUND, L.P. By: Hummingbird Capital, LLC By: /s/ Paul D. Sonkin ------------------------------------ Paul D. Sonkin Managing Member HUMMINGBIRD CAPITAL, LLC (f/k/a Morningside Capital, LLC) By: /s/ Paul D. Sonkin ------------------------------------ Paul D. Sonkin Managing Member /s/ Paul D. Sonkin ---------------------------------------- PAUL D. SONKIN - ------------------------ --------------------- CUSIP No. 583062104 13D Page 10 of 14 Pages - ------------------------ --------------------- Exhibit Description Page A Joint Filing Agreement dated January 19, 2006 11 by and among Hummingbird Management, LLC, Paul D. Sonkin, Hummingbird Value Fund, L.P., Hummingbird Microcap Value Fund, L.P., Hummingbird Concentrated, L.P., Hummingbird Capital, LLC. B Letter to the Board of Directors, Meade Instrument 12 Corp.,dated January 19, 2006. - ------------------------ --------------------- CUSIP No. 583062104 13D Page 11 of 14 Pages - ------------------------ --------------------- Exhibit A JOINT FILING AGREEMENT In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of a Statement on Schedule 13D dated January 19, 2005 (including amendments thereto) with respect to the Common Stock of Meade Instrument Corp. This Joint Filing Agreement shall be filed as an Exhibit to such Statement. Dated: January 19, 2006 HUMMINGBIRD MANAGEMENT, LLC (f/k/a Morningside Value Investors, LLC) By: /s/ Paul D. Sonkin --------------------------------- Name: Paul D. Sonkin Title: Managing Member /s/ Paul D. Sonkin ------------------------------------- PAUL D. SONKIN HUMMINGBIRD VALUE FUND, L.P. By: Hummingbird Capital, LLC By: /s/ Paul D. Sonkin --------------------------------- Name: Paul D. Sonkin Title: Managing Member HUMMINGBIRD MICROCAP VALUE FUND, L.P. By: Hummingbird Capital, LLC By: /s/ Paul D. Sonkin --------------------------------- Name: Paul D. Sonkin Title: Managing Member HUMMINGBIRD CONCENTRATED FUND, L.P. By: Hummingbird Capital, LLC By: /s/ Paul D. Sonkin --------------------------------- Name: Paul D. Sonkin Title: Managing Member HUMMINGBIRD CAPITAL, LLC (f/k/a Morningside Capital, LLC) By: /s/ Paul D. Sonkin --------------------------------- Name: Paul D. Sonkin Title: Managing Member By: /s/ Paul D. Sonkin --------------------------------- Name: Paul D. Sonkin - ------------------------ --------------------- CUSIP No. 583062104 13D Page 12 of 14 Pages - ------------------------ --------------------- Hummingbird Management LLC 460 Park Avenue, 12th Floor New York, New York 10021 January 19, 2006 Board of Directors Meade Instruments Corp. 6001 Oak Canyon Irvine, CA 92618 Gentlemen: As you know, Hummingbird Management LLC ("Hummingbird") is a significant stockholder of Meade Instruments Corp. ("Meade" or the "Company"). We beneficially own approximately 2,800,000 shares of Meade's common stock (approximately 14% of the outstanding shares). Over the past several months, we have privately reached out to the Company's management and individual members of its Board of Directors (the "Board") to discuss our concerns regarding Meade's disappointing financial performance and its failure to effectively communicate with its stockholders. We have made specific suggestions that would help the Company operationally and provide better information to the investment community. Unfortunately, our concerns have fallen on deaf ears. Therefore, in order to protect our investment in the Company, we have no choice but to publicly communicate our concerns directly to the entire Board in the hope that the Board will promptly implement meaningful steps to enhance stockholder value. Although the Company dominates its markets, Meade's stock has performed miserably. In less than three years, the common stock has fallen from a high of $6.01 to $2.84 as of January 18, 2006, a drop of over 50%. Within the past few months, the stock has approached its all-time low since going public in 1997. It is now trading at less than equity book value. The current stock price reflects the Company's lack of business performance. Sales have stagnated, gross profit has plummeted and operating income has virtually disappeared. Clearly, something has gone very wrong. We have significant concerns about the Company's ability to implement a business plan that will promptly return the Company to profitability for the benefit of all stockholders. Sacrificing the bottom line for top-line growth and squandering business opportunities has not served Meade's stockholders well. The Company's recent failure to fulfill the orders it had taken on its innovative Simmons riflescopes because of quality and other production problems is a prime example of mismanagement. Meade relied on a new and untested supplier in China. What happened? Not only did sales fail to materialize, but money spent on advertising and priming the sales channels was entirely wasted. Meade's stockholders should be told in detail both what the Company's plans are to avoid future gaffes and whether it is meeting them. The Company cannot afford another blunder of this type, single sourcing a new critical product in a foreign country, with no back-up plan. - ------------------------ --------------------- CUSIP No. 583062104 13D Page 13 of 14 Pages - ------------------------ --------------------- We believe that the Board's failure to enact appropriate compensation arrangements between Meade and its executive management is one of the primary reasons for Meade's dismal operating performance. The compensation package of Steven Murdock, the Company's chief executive officer and president, and other top management does not reward them for good performance nor does it penalize them for failure to deliver. Steve Murdock has a $450,000 base salary, and he received a $325,000 bonus last fiscal year. Through the first three quarters of fiscal 2006, the Company has lost $0.8 million. We propose a base salary reduction to $300,000, and that the rest of his compensation be in the form of restricted stock that vests upon the Company meeting certain profitability benchmarks. We would not oppose a bonus scheme that would more than make up for the base salary reduction but it must be a win-win situation where the interest of the Company's stockholders and Mr. Murdock are aligned. A similar arrangement should be worked out with other key executives. We call for the Board and its Compensation Committee to take immediate action to develop new compensation arrangements and target minimum stock ownership levels for the management team. We believe that the Company's failure to communicate effectively with its stockholders is one of the primary reasons for Meade's dismal stock performance. Meade has to communicate better with Wall Street . Years of disappointing performance and inadequate communications have destroyed its credibility. Stockholder value will not be achieved without transparent communications with Wall Street detailing the reasons for any earnings shortfalls, providing specificevidence regarding how problems will be solved, and providing clear, accurate and concise guidance on future results. We call for Meade to hire an investor relations firm that has experience with companies of Meade's size, history, and prospects. A good IR firm will be able to assist the Company in placing its spokesmen at the appropriate conferences and getting the story out over time to the right audiences. Meade's management must commit to getting out on the road and hosting "road shows". An effective IR firm can assist in rebuilding Meade's stockholder base and securing research coverage. We have suggested a specific firm to Meade, one which we think meets its needs. We want to be consulted on the selection as we are much closer to Wall Street than the Company and have a better knowledge of how the process should work and who can make it happen. Through these blunders of execution, coupled with poor communication with Wall Street, the Board and management have put Meade in a very precarious position. We believe that the Company is extremely vulnerable to various constituencies, including strategic buyers and private equity firms. Meade is very inexpensive, based on a number of different metrics. Meade is trading at a discount to book value of $3.05 per share. It is also trading at a modest premium of net-net working capital of $2.35, a proxy for liquidation value. It would be a mistake to allow third parties to control the Company's destiny at this time. - ------------------------ --------------------- CUSIP No. 583062104 13D Page 14 of 14 Pages - ------------------------ --------------------- At Hummingbird, we have worked very closely with scores of management teams. The current situation with Meade is the first time that a Board has been totally close-minded to having an open and frank dialogue with a significant stockholder whose only goal is to improve stockholder value. Meade's mismanagement and behavior is exceptionally unprofessional and quite damaging to the Company and its stockholders. We therefore request that a representative of Hummingbird be immediately added to the Board. As a representative of the Company's stockholders, we would be able to make this Board understand and be responsive to stockholder concerns. One could easily make the case that, in the best interests of Meade's stockholders, for the Board to hire an investment banker to pursue strategic alternatives to maximize stockholder value by selling the Company in whole or in part. We demand that the Company and the Board immediately adopt and implement our suggestions and begin the process of rebuilding stockholder value and take all other steps required to immediately improve profitability. If significant progress to resuscitate Meade is not made within the next few months, we believe that the Company should start the bidding process. I look forward to getting a response from you promptly. Sincerely, Paul D. Sonkin Managing Member Hummingbird Management, LLC. -----END PRIVACY-ENHANCED MESSAGE-----