EX-99 3 dex99.htm EXHIBIT (C)(3) Exhibit (C)(3)

Exhibit (c) (3)

Confidential

 

 

Presentation to the Special Committee of the Board of

Directors of Raven

For preliminary discussion purposes only

 

March 14, 2003

 

 

Confidential

 

The information contained in this presentation was obtained solely from Raven Management and public sources. Signal Hill Capital Group LLC (“Signal Hill Capital”) has used and relied upon such information in the preparation of this presentation without independent verification of any such information. Signal Hill Capital assumes no responsibility for its accuracy or completeness nor does Signal Hill Capital make any representation or warranty in respect of such information.

 

This presentation has been prepared solely for the use of the Special Committee of the Board of Directors, its financial and legal advisors, and for Management of Raven. It is strictly confidential and may not be disclosed or provided to any third parties.

 

This presentation is prepared as of March 14, 2003 and reflects information made available to Signal Hill Capital prior to such date. It does not include information regarding all of the assessments made by Signal Hill Capital in arriving at its preliminary conclusions.

 

 

 

2

Confidential

 

 

Executive summary

 

n Raven’s stock price is significantly depressed

 

n The stock price and trading volume may never recover:

 

–  Limited analyst coverage

–  No liquidity given low volume and small public float

–  Poor visibility of revenues and earnings

–  Lack of interest from investors

 

n Corporate IT spending shows no signs of recovering in the next 12-24 months

 

–  Corporate IT budgets are more likely to tighten than loosen in the near-term according to a recent survey of IT              managers

–  Only 19% of IT managers believe that an easing or resolution of current geopolitical tensions will help spur IT              spending

–  There is still an overhang in tech investments from the dot-com boom days that will temper overall technology              spending in 2003 according to an analyst at Gartner Inc.

 

n Strategic alternatives include selling the Company or taking it private:

 

–  The Company is not for sale since the majority shareholder will not sell his 60% stake in Raven

–  A going-private transaction is the only means for minority shareholders to gain liquidity

 

n As a private company, Raven can more effectively:

 

–  Restructure its operations and cost structure

–  Improve employee morale as focus on stock price disappears

–  Avoid punitive costs associated with Sarbanes-Oxley

 

 

 

3

Confidential

 

Recent analyst commentary

 

     Date
    Analyst
    Recommendation/
Current Price
   

Break-up

Value Est.

   

Comments

Legg Mason recently
dropped coverage		    2/14/03    Loomis, Legg Mason   

Drop Coverage

$1.26

    $2.04   

n     Dropping coverage because of depressed valuation, thin volume, lack of progress on cost structure, flat revenue, and resource reallocation after expanding coverage universe in IT. No longer recommend shares for purchase.

William Blair
maintains an

Underperform rating

and notes continued

weakness in the

technology sector

    2/12/03    Lederman, William Blair   

Underperform

$1.23

    N/A   

n     Market for technology as a whole is still depressed and is unlikely to see material improvements in the near-term, as customers lack a sense of urgency to spend. Expect the technology market as a whole to be relatively anemic during 2003; our research shows IT budgets remaining flat with 2002 levels.

     11/7/02    Lederman, William Blair   

Underperform

$1.81

    N/A   

n     Latitude360 continues to present a drag on the Company’s profitability. Market for technology as a whole is depressed and unlikely to improve near-term.

     7/24/02    Lederman, William Blair   

Underperform

$2.20

    N/A   

n     Underweight technology sector until the group has bottomed and business improves.

    

1/15/02

    Price, Legg Mason   

Buy

$2.80

    $3.01   

n     Key issues for Raven to address include the Company’s near-term demand outlook and progress on reducing costs to move back toward profitability.

 

4

Confidential

 

Annotated price / volume history

 

 

                                                   
                                                   
                    LOGO

Average daily volume

between 1/2/02 and

3/12/03 was 10,070

   

Date

Range

   

Aver.
Daily
Vol.

   

Price
Change

   

%
Price
Change

   

2002 Q1

    18,487    $1.33    49%   

2002 Q2

    13,802    ($1.78)    (45%)   

2002 Q3

    5,669    ($0.19)    (9%)   

2002 Q4

    4,310    ($0.43)    (22%)   

2003 YTD

    8,133    ($0.69)    (44%)   
                   
                   
                   
                                                   
                   

FY Report

   

2002Q1

   

2002Q2

   

2002Q3

   

2002Q4

   

2002

   

2003Q1

                   

Estimate

    ($0.14)    ($0.05)    ($0.11)    ($0.07)    ($0.31)    ($0.12)
                   

Actual(1)

    ($0.05)    ($0.14)    ($0.06)    ($0.20)    ($0.45)    ($0.21)(2)

 

Source: First Call, Factset

  (1)   Represents fully diluted EPS as reported before special charges and cumulative effect of accounting change.
  (2)   Actual results for 2003Q1 through February 2003.

 

 

5

Confidential

 

Raven relative stock price performance

 

 

Over the past twelve months, Raven has

underperformed the NASDAQ as well as its

peer group

    LOGO
    

 

 

 

Source: Factset

Notes:

1) Specialty Integrators / Consultants group includes (ANSR, TSCC, DTPI, SAPE, CHRZ, CTG, GPX)

2) Systems Integrators / Government group includes (CSC, EDS, PER, MANT, TTN, CAI, TIER, MMS)

3) E-Learning group includes (DCNT, SABA, CTRA, LSPN)

4) Consulting group includes (ACN, BE, CAP)

 

6

Confidential

 

Raven volume at price analysis

 

 

It took Raven the past 21 months to trade volume equal to 100% of the 5.3 million shares of float.

    LOGO
  
                   
                   
                   
                   
                   
                   
                   
                   
                   

 

Source: Factset

 

7

Confidential

 

Ownership profile

 

Raven

Ownership Analysis (000s)

 

Institutional Holders

    Holdings
    % of
Outstanding
        

Insiders (a)

    Holdings
    % of
Outstanding

Fidelity Management

    1,338    8.63%         Dr. Robert W. Deutsch    9,356    60.31%

Brown Investment

    700    4.51%         Jane C. Brown    617    3.98%

Wellington Management

    463    2.99%         Robert T. O’ Connell    25    0.16%

Dimensional Fund

    292    1.88%         Dr. David Yager    11    0.07%

Vanguard Group

    117    0.75%         Dana M. Sohr    10    0.07%

Mellon Private Asset Management

    28    0.18%         Jerry P. Malec    7    0.04%

Barclays Global Investors

    26    0.17%         Jeffrey W. Wendel    6    0.04%

Northern Trust Global Investments

    23    0.15%         All other directors and officers    14    0.09%

Northern Trust Investments

    21    0.13%         Net options (b)    175    1.13%
    
  
       
  
  

Total Institutional Holdings

    3,008    19.39%         Total Insider Holdings    10,221    65.89%
                    Institutional Holdings    3,008    19.39%
                    Retail & Other Holdings    2,284    14.72%
                   
  
  
                    Float    5,292    34.11%
                    Insider Holdings    10,221    65.89%
                   
  
  
                    Fully Diluted Shares Out.    15,513    100.00%
                        
  

 

Source: Nasdaq online, Proxy and 10-Q 3Q 2002, 2001 10K

(a) Includes Direct and Indirect Shares.

(b) Accounted for by treasury stock method.

 

8

Confidential

 

Comparable company trading analysis

 

                        

Enterprise Value as a

Multiple of:

    Price as Multiple:
   

Equity/Book

Value

   

L-T
Growth

Rate

  
                         Revenue
    EBITDA
   

LTM

EPS

   

2003E

EPS

   

2004E

EPS

      

Company Name /

    [Ticker]

    Ticker
  

Price

3/12/2003

   

Equity

Value

   

Enterprise

Value

     LTM
    2003E
    LTM
    2003E
               
Specialty Integrators/Consultants                                                                   

Answerthink

    [ANSR]   $2.43    $112,338    $46,010     0.3x    0.3x    13.8x    12.6x    NM    NM    NA    1.0x    20.0 %

Technology Solutions

    [TSCC]   $1.00    $41,495    ($13,868 )   NM    NM    NM    NM    34.0x    NA    NA    0.6x    NA  

DiamondCluster Intl

    [DTPI]   $2.02    $63,424    ($23,577 )   NM    NM    NM    NM    NM    NA    NA    0.3x    20.5 %

Sapient Corporation

    [SAPE]   $1.67    $203,870    $22,508     0.1x    0.1x    NM    NM    NM    NM    NM    1.3x    23.7 %

Computer Horizons Corp.

    [CHRZ]   $2.84    $87,852    $28,083     0.1x    0.1x    NM    8.8x    NM    NA    NA    0.6x    12.0 %

Computer Task Group, Inc.

    [CTG]   $2.32    $48,617    $57,045     0.2x    NA    3.8x    NA    28.8x    NA    NA    0.9x    NA  

GP Strategies

    [GPX]   $4.77    $78,613    $107,970     0.7x    0.7x    NM    13.7x    NM    34.1x    11.1x    0.8x    20.0 %
             
                   Mean     0.3x    0.3x    8.8x    11.7x    31.4x    34.1x    11.1x    0.8x    19.2 %
                   Median     0.2x    0.2x    8.8x    12.6x    31.4x    34.1x    11.1x    0.8x    20.0 %
             

e-learning / LMS

                                                                   

Docent, Inc.

    [DCNT]   $2.63    $35,126    ($5,817 )   NM    NM    NM    NM    NM    NA    NA    0.9x    NA  

Saba Software, Inc.

    [SABA]   $0.59    $31,352    $7,237     0.1x    0.2x    NM    NM    0.8x    NM    NA    1.2x    23.3 %

Centra Software

    [CTRA]   $1.24    $32,809    ($1,507 )   NM    NM    NM    NM    NM    NM    31.0x    1.1x    29.2 %

Lightspan, Inc.

    [LSPN]   $0.73    $34,777    ($8,590 )   NM    NM    NM    NM    NM    NM    NA    0.5x    30.0 %
             
                   Mean     0.1x    0.2x    NA    NA    0.8x    NA    31.0x    0.9x    27.5 %
                   Median     0.1x    0.2x    NA    NA    0.8x    NA    31.0x    1.0x    29.2 %
             

Consulting

                                                                   

Accenture

    [ACN]   $13.79    $12,792,813    $12,040,194     0.9x    1.0x    7.2x    6.1x    21.7x    13.3x    11.8x    22.0x    15.2 %

Bearing Point

    [BE]   $6.10    $1,156,225    $1,399,292     0.5x    0.6x    6.8x    5.2x    18.6x    11.5x    NA    1.1x    15.3 %

Cap Gemini

    [CAP]   $25.13    $3,186,658    $2,674,110     0.3x    0.4x    7.9x    5.6x    NM    27.8x    12.7x    0.8x    6.7 %
             
                   Mean     0.6x    0.7x    7.3x    5.6x    20.2x    17.5x    12.2x    8.0x    12.4 %
                   Median     0.5x    0.6x    7.2x    5.6x    20.2x    13.3x    12.2x    1.1x    15.2 %
             
                   Integrators / Outsourcing / e-Learning / Consulting                 
             
                   Mean     0.4x    0.4x    7.9x    8.6x    20.8x    21.6x    16.6x    2.4x    19.6 %
                   Median     0.3x    0.4x    7.2x    7.4x    21.7x    20.5x    12.2x    0.9x    20.0 %
             

Raven

        $0.86    $13,349    ($4,371 )   NM    NM    NM    NM    NM    NM    NA    0.3x    10.0 %

 

9

Confidential

 

Comparable company trading analysis (continued)

 

                    Enterprise Value as a
Multiple of:
     Price as Multiple:
    

Equity /

Book

Value

    

L-T

Growth

Rate

  
                         
                    Revenue
     EBITDA
    

LTM

EPS

    

2003E

EPS

    

2004E

EPS

      

Company Name /

[Ticker]

   Ticker
  

Price

3/12/2003

  

Equity

Value

  

Enterprise

Value

   LTM
     2003E
     LTM
     2003E
            

System Integrators/Government

                                                                            

Computer Sciences Corporation

   [CSC]   $ 29.24   $ 5,049,505   $ 4,888,505   0.4 x   0.4 x   3.1 x   3.0 x   12.0 x   10.8 x   N A   1.2 x   12.8 %

EDS

   [EDS]   $ 14.72   $ 7,012,543   $ 10,926,543   0.5 x   0.5 x   3.3 x   3.5 x   7.1 x   9.2 x   8.3 x   1.0 x   11.2 %

Perot Systems Corporation

   [PER]   $ 9.13   $ 989,564   $ 776,664   0.6 x   0.5 x   5.3 x   N A   13.5 x   13.6 x   12.0 x   1.5 x   15.9 %

ManTech International

   [MANT]   $ 14.22   $ 377,139   $ 380,781   0.8 x   0.6 x   9.7 x   N A   16.4 x   15.0 x   13.2 x   2.5 x   18.0 %

The Titan Corporation

   [TTN]   $ 7.30   $ 573,659   $ 1,136,555   0.8 x   0.7 x   11.9 x   8.5 x   12.2 x   11.8 x   10.1 x   1.9 x   19.4 %

CACI International

   [CAI]   $ 30.00   $ 897,613   $ 811,461   1.1 x   1.0  x   11.1 x   N A   22.5 x   19.0 x   N A   2.3 x   20.7 %

Tier Technologies

   [TIER]   $ 9.66   $ 184,042   $ 134,656   1.2 x   0.7 x   7.6 x   4.0 x   N M   10.9 x   N A   1.1 x   17.6 %

Maximus, Inc.

   [MMS]   $ 19.21   $ 410,580   $ 326,185   0.6 x   0.5 x   4.7 x   3.8 x   11.1 x   9.0 x   7.9 x   1.3 x   16.6 %
                System Integrators / Government
  
                      Mean   0.8 x   0.6 x   7.1 x   4.6 x   13.6 x   12.4 x   10.3 x   1.6 x   16.5 %
                      Median   0.7 x   0.6 x   6.5 x   3.8 x   12.2 x   11.4 x   10.1 x   1.4 x   17.1 %
               
 

Raven

       $ 0.86   $ 13,349     ($4,371)   N M   N M   N M   N M   N M   N M   N A   0.3 x   10.0 %

 

10

Confidential

 

Comparable company transaction analysis

 

Mergers & Acquisitions Transaction Multiples

($ in millions except shaded figures and multiples)

 

Ann’d
    Effective
   

Target/
Acquiror

    Equity
Transaction
Value
    %
Acq.
    Equity
Value
    Debt
    Cash
    Enterprise
Transaction
Value
    LTM
Revenue
    Enterprise
Value/
LTM
Revenue
   

Description of Target
Company

12/20/2002

    12/20/2002   

Tess Accenture

    $8.0    100.0%    $8.0    NA    NA    $8.0    NA    NA    Provides human resources management. Includes $200m business process outsourcing agreement for Accenture to provide payroll processing to Telecom Italia.

12/17/2002

    1/1/2003   

ProjExpert
CGI Group Inc.

    CAD 1.7    100.0%    CAD 1.7    NA    NA    CAD 1.7    CAD 2.8    0.6x    Provides computer consulting services, focusing on the implementation of Enterprise Resource Planning (ERP) specific to Oracle applications.

12/13/2002

    3/31/2003   

DynCorp Inc. Computer Sciences Corp.

    $709.4    100.0%    709.4    $273.0    $32.4    $950.0    $2,281.8    0.4x    Founded in 1946, provides systems and network integration, high-tech range operations, global defense logistics and other services to large defense, security and civil markets.

12/9/2002

    12/9/2002   

Condor Tech-SAP Reseller Bus. Answerthink Inc.

    NA    100.0%    NA    NA    NA    NA    NA    NA    Provides software reselling services to small and midsize companies in Northeast markets.

12/6/2002

    1/28/2003   

Cognicase Inc. CGI Group Inc.

    CAD 313.3    100.0%    CAD 313.3    $61.3    $54.0    CAD 320.6    CAD 513.2    0.6x    Offered corporations and government agencies consulting and systems integration services, including management of information systems projects and platform migration.

11/12/2002

    12/31/2002   

American Management-Energy Wipro Ltd.

    $26.0    100.0%    $26.0    NA    NA    $26.0    NA    NA    Sells and provides consulting, systems integration and implementation services to Vertical Energy Business Participants at various locations throughout the world.

10/21/2002

    10/21/2002   

Avercom division of Titan Corp. Sharp Decisions

    NA    100.0%    NA    NA    NA    NA    NA    NA    Information technology and integration division of Titan Corporation. Based in Woodbridge, New Jersey.

9/24/2002

    10/16/2002   

Acton Burnell, Inc. (1) CACI International Inc.

    $29.6    100.0%    $29.6    NA    NA    $29.6    $28.4    1.0x    Veteran-owned professional services firm supporting the information technology needs of the federal government. Headquarters in Alexandria, VA.

7/23/2002

    9/23/2002   

Sense8 Breider Moore & Co.

    NA    100.0%    NA    NA    NA    NA    NA    NA    Leading provider of real-time interactive 30 software development tools. These applications simplify the complex task of developing real-time 3-D interactive applications.

7/10/2002

    8/19/2002   

Government Solutions Divisions of CTSI CACI International Inc.

    $16.0    100.0%    $16.0    NA    NA    $16.0    $20.0    0.8x    Government Solutions Division of Condor Technology Solutions Inc. (CTSI) provides consulting services to Department of Veterans Affairs and the National Guard Bureau.

7/9/2002

    7/9/2002   

IMPLETECH International Inc. CGI Group Inc.

    CAD 1.4    100.0%    CAD 1.4    NA    NA    CAD 1.4    CAD 5.0    0.3x    Offers systems integration and consulting services within the manufacturing sector with a focus on enterprise resources planning (ERP) implementation.

7/2/2002

    7/2/2002   

ADI Technology Corp. (1) (2) Perot Systems Corp.

    $32.0    100.0%    $32.0    $6.0    0.0    $38.0    $72.0    0.5x    A professional services company that provides technical, information, and management disciplines to the defense, intelligence, and law enforcement communities.

6/12/2002

    6/12/2002   

Stewart & Stewart Consulting CGI Group Inc.

    CAD 3.3    100.0%    CAD 3.3    NA    NA    CAD 3.3    CAD 4.0    0.8x    Supplies geographic information systems and resource-based systems knowledge primarily to the Alberta government.

3/26/2002

    3/26/2002   

Princeton Softech Inc. Apax Partners, Inc.

    $16.0    100.0%    $16.0    NA    NA    $16.0    $29.0    0.6x    Princeton Softech is wholly-owned subsidiary of Computer Horizon Corp. Company provides services that help enterprises enhance the performance of their systems by managing data smarter.

3/7/2002

    3/16/2002   

Government Solutions Center of KPMG (3) Tier Technologies Inc.

    $8.0    100.0%    $8.0    NA    NA    $8.0    NA    NA    Government Solutions Center of KPMG Consulting is based in McLean, VA and provides implementation, integration, maintenance and support services to more than 50 clients in U.S.

2/28/2002

    Pending   

e-peopleserve (4) Accenture Ltd.

    $140.0    100.0%    $140.0    NA    NA    $140.0    NA    NA    Human resources outsourcing business, originally owned 50/50 by BT and Accenture. Company will continue to provide BT with HR services post merger.

2/25/2002

    Terminated   

Science & Engineering Associates (5) Titan Corporation

    $72.0    100.0%    $72.0    NA    NA    $72.0    $95.0    0.8x    New-Mexico based privately held provider of engineering and information technology services and specialized laser, sensor, and imaging products primarily to government customers.

2/7/2002

    2/7/2002   

Exult Process Intelligence Center Answerthink Inc.

    $0.2    100.0%    $0.2    NA    NA    $0.2    NA    NA    Formerly known as Gunn Partners Research, research arm of Exult, Inc., market leader in HR business process outsourcing in Global 500 corporations.

8/21/2001

    11/30/2001   

Metro Information Services Inc. Keane Inc.

    $135.0    100.0%    $135.0    $68.0    $83.9    $119.1    $288.4    0.4x    Founded in 1979, serves 33 metropolitan markets providing information technology consulting services and solutions.

6/28/2001

    7/23/2001   

The Point Group Companies, Inc. (6) Tier Technologies Inc.

    $1.8    100.0%    $1.8    NA    NA    $1.8    $2.0    0.9x    Consulting firm specializing in the criminal justice, public safety and health and human services state and local vertical markets.

3/12/2001

    7/11/2001   

Cambridge Technology Partners Novell Inc.

    $266.0    100.0%    $266.0    $0.0    $96.7    $169.3    $586.6    0.3x    Founded in 1991, provides strategic and management consulting as well as system integration services to Global 1000 clients.
                             
   
                                        Min:         0.3x      
                             
   
                                        Mean:         0.6x      
                                        Median:         0.6x      
                             
   
                                        Max:         1.0x      
                             
   

 

Note: Based on publicity available information.

(1)Revenues based on estimate from press release.

(2)Transaction value excludes earnout of up to $15m.

(3)Transaction value excludes earnout of up to $8.5m.

(4)Transaction value excludes earnout of between $35m and $223m.

(5)Transaction value excludes earnout of up to $3.8m.

(6)Transaction value excludes earnout of up to $2.8m.

 

11

Confidential

 

Actual versus budgeted performance

 

LOGO

 

Note : Actual results exclude severance charges.

 

12

 

Confidential

 

Going-private premium analysis

 

 

  n   Precedent transactions were selected based on the following criteria:

 

–  US targets

 

–  Transactions announced since January 1, 2001

 

–  Transaction value less than $100 million

 

–  Remaining interest represents 20-50 percent of target’s outstanding shares

 

–  Cash consideration only

 

  n   Precedent transactions would imply a initial price range of $1.18-1.70

 

 

              

Precedent transaction initial

premium price range

           Implied initial price

Stock price category

   

Raven’s price

         Mean
   Median
           Mean
    Median

Closing price (3/12/03)

    $0.86         44.4%   36.8%           $ 1.24    $ 1.18

10 day average

    $0.98         47.2%   35.9%           $ 1.44    $ 1.33

20 trading day average

    $1.11         47.9%   30.3%           $ 1.65    $ 1.45

30 trading day average

    $1.15         48.0%   30.8%           $ 1.70    $ 1.51

 

 

13

 

Confidential

 

Premiums paid in precedent going-private transactions

 

                                    Premium based on Initial offer
  

Date ann.

    Date eff.
   

Target Acquiror

   

Ann.

Trans.
value

    % acq.
    

Equity

Value

    Initial
Offer
    1 day
      10 trading
days
      20 trading
days
      30 trading
days
  

08/12/02

    10/28/02    Little Switzerland, Inc.    25.3    53 %   47.7    2.40    73 %    69 %    63 %    55 %
         

Tiffany & Co.

                                                 

07/31/02

    12/10/02    JCC Holding Company    54.0    37 %   145.9    10.54    17 %    29 %    30 %    31 %
         

Harrah’s Entertainment, Inc.

                                                 

06/12/02

    02/04/03    Royal Precision, Inc.    0.3    22 %   1.2    0.37    48 %    52 %    30 %    27 %
         

Royal Associates, Inc.

                                                 

05/16/02

    08/19/02    Balanced Care Corporation    4.0    47 %   8.6    0.25    150 %    169 %    164 %    160 %
         

IPC Advisors S.a.r.l

                                                 

03/14/02

    11/25/02    Konover Property Trust Inc.    18.2    33 %   55.2    1.75    -3 %    -2 %    -2 %    -1 %
         

Prometheus Southwest Retail Trust

                                                 

03/11/02

    04/09/02    Hawker Pacific Aerospace    8.5    27 %   31.2    3.25    1 %    2 %    16 %    21 %
         

Lufthansa Technix AG

                                                 

11/16/01

    03/04/02    Ugly Duckling Corporation    17.0    39 %   43.4    2.51    3 %    4 %    6 %    3 %
         

Management

                                                 

10/25/01

    01/03/02    Enex Resources Corporation    3.8    20 %   18.8    14.00    107 %    107 %    111 %    105 %
         

3TEC Energy Corporation

                                                 

08/16/01

    01/24/03    Leeds Federal Bankshares, Inc.    44.0    27 %   161.2    32.00    98 %    96 %    95 %    95 %
         

Northwest Bancorp, Inc.

                                                 

07/16/01

    08/24/01    Peapod Inc.    35.0    42  %   83.3    2.15    72  %    96 %    104 %    98 %
         

Koninklijke Ahold NV

                                                 

05/22/01

    12/21/01    Quizno’s Corporation    6.0    32  %   18.7    8.00    1 %    7 %    9 %    9 %
         

Management

                                                 

05/14/01

    10/31/01    AGENCY.COM, Ltd.    53.8    34  %   157.3    3.00    46  %    37 %    52 %    72 %
         

Seneca Investments

                                                 

04/27/01

    07/26/02    Pierre Foods Inc    5.3    37  %   14.5    1.21    -10  %    -18 %    -13 %    -6 %
         

Management

                                                 

04/02/01

    08/08/01    Milestone Properties Inc.    3.7    31 %   12.0    2.65    37  %    36 %    34 %    34 %
         

Concord Assets Group Inc.

                                                 

01/16/01

    11/20/01    Leslie Fay Co.    5.6    31 %   18.1    3.50    27 %    23 %    19 %    16 %
         

Three Cities Research Inc.

                                                 

 

High

   150%   169%   164%   160%
  
 
 
 

Mean

   44%   47%   48%   48%

Median

   37%   36%   30%   31%
  
 
 
 

Low

   -10%   -18%   -13%   -6%

 

14

Confidential

 

Update on process, timing and responsibilities

 

[GRAPHIC APPEARS HERE]

 

Date

   

Event

   

Participant(s)

Feb. 11

    Organizational meeting    Company, SHCG, CC
     Commence due diligence    Company, SHCG
     2002 earnings release    Company

Feb. 12

    2002 earnings conference call    Company

Feb. 21

    Board of Directors meeting    Company, Board
     Present concept to Board    Company, Board, SHCG, CC
     Form Special Committee    Board
     Select Chairperson of Special Committee    Board

Weeks of March 3 & 10

   

Special Committee hires legal and financial
advisors

    SC
     Special Committee meets with its advisors    SC, SCA

March 14

   

First meeting between Special Committee and
Management

    Company, SHCG, CC, SC SCA

Week of March 17

    Special Committee advisors begin due diligence    SCA

Weeks of March 31 & April 7

    Negotiations    All

Week of April 14

    Special Committee recommendations to Board    SC, SCA, Board

Week of April 21

    Fairness opinions issued    SHCG, SCA
     Board Approval    Board

Week of April 28

    File documents with SEC    All

TBD

    Review Period    All
     Complete transaction    All
           

 

 

 

 

 

15