Lake Public Market Overview Company Snapshot (1) Options calculated using the treasury stock method; currently < 50,000 shares. (2) Fiscal year ending January 30, 2010 used in place of Calendar year end. (3) Assumes net debt of $309.0 million based on average debt and cash for FY 2009 based on quarterly actuals and estimates provided by Company. Summary Trading Statistics Estimates Summary - ($ in millions) (2) Project Lake GMTN LTM (3) 2009E Street 2009E MGMT Current Stock Price as of September 17, 2009 $3.96 Revenue $1,078.1 $1,102.2 $1,079.5 1 Week Prior $3.90 Adjusted EBITDA $44.7 $39.7 $49.3 4 Weeks Prior $5.77 3 Months Prior $6.04 6 Months Prior $2.18 Fully Diluted Valuation Summary 12 Months Prior $3.33 LTM 2009E Street 2009E MGMT Fully Diluted Company Value/Revenue 0.4x 0.4x 0.4x In the last 52 weeks, the stock has closed at: Fully Diluted Company Value/EBITDA 9.1x 10.2x 8.2x A closing price high of: $6.42 A closing price low of: $1.00 Current stock price as a % of 52 week high 61.7% Fully Diluted Summary Capitalization ($ in millions) (1) Common Shares Outstanding (millions) 24.2 Common Stock Equivalents as of September 17, 2009 (millions) NM Fully Diluted Share Count 24.2 Current Stock Price as of September 17, 2009 $3.96 Fully Diluted Market Capitalization $95.8 Plus: Debt (3) 310.5 Less: Cash and Marketable Securities (3) 1.5 Fully Diluted Company Value $404.8 Page 3

Summary Valuation Analysis Lake Summary Valuation Lake Company Value Snapshot Fully Diluted Summary Capitalization ($ mm) Common Shares Outstanding (millions) 24.2 Common Stock Equivalents as of September 17, 2009 (millions) NM (1) Fully Diluted Share Count 24.2 Current Stock Price as of September 17, 2009 $3.96 Fully Diluted Market Capitalization $95.8 Plus: Debt (2) $310.5 Plus: Cash (2) $1.5 Fully Diluted Company Value $404.8 EBITDA Multiple Analysis EBITDA Implied EBITDA Multiples ($ mm) $3.00 $4.00 $5.00 $6.00 $7.00 LTM @ August 29, 2009 $44.7 8.5x 9.1x 9.6x 10.2x 10.7x Street FY 2009 Estimate $39.7 9.6x 10.2x 10.8x 11.4x 12.0x Management FY 2009 Forecast $49.3 7.7x 8.2x 8.7x 9.2x 9.7x Premiums Analysis Average Premium Premium Premium Premium Premium Share Price @ $3.00 @ $4.00 @ $5.00 @ $6.00 @ $7.00 One Day $3.96 -24.2% 1.0% 26.3% 51.5% 76.8% One Week Average $3.94 -23.8% 1.6% 27.0% 52.4% 77.8% Average Starting September 1, 2009 (3) $4.13 -27.4% -3.2% 21.0% 45.2% 69.4% Four Week Average $4.71 -36.2% -15.0% 6.3% 27.5% 48.8% (1) Fewer than 50,000 calculated using the treasury stock method. (2) Average debt and cash for FY 2009 based on quarterly actuals and estimates provided by Company. At August 1, 2009, debt and cash were $329.9 million and $1.5 million, respectively, according to the Company's Quarterly Report on Form 10-Q. (3) The Company released second quarter earnings before the market opened on September 1, 2009. Page 12

Offer Price: $4.20 Summary Valuation Analysis Lake Summary Valuation – Comparable Public Companies In $ millions, except per share data (1) Assumes net debt of $309.0 million based on average debt and cash for FY 2009 based on quarterly actuals and estimates provided by Company. $25.87 $26.24 $25.30 $25.87 $25.48 $25.17 Low 0.18x 0.18x 0.18x 4.60x 4.32x 4.18x 12.11x 0.18x 0.18x 0.18x 4.60x 4.32x 4.18x 12.11x Mean 0.51x 0.50x 0.48x 7.30x 7.06x 6.20x 18.27x 0.51x 0.50x 0.48x 7.30x 7.06x 6.20x 18.27x Median 0.46x 0.45x 0.44x 8.52x 7.50x 6.87x 20.08x 0.46x 0.45x 0.44x 8.52x 7.50x 6.87x 20.08x High 0.90x 0.89x 0.83x 8.71x 8.91x 7.89x 20.83x 0.90x 0.89x 0.83x 8.71x 8.91x 7.89x 20.83x Offer Price Implied Multiple 0.38x 0.37x 0.36x 9.18x 10.34x 7.31x NEG 0.38x 0.38x 0.36x 9.18x 8.32x 5.67x NEG Company Statistic $1,078.1 $1,102.2 $1,144.7 $44.7 $39.7 $56.2 ($6.4) $1,078.1 $1,079.5 $1,140.8 $44.7 $49.3 $72.4 ($6.4) ($5.52) Comp. Companies - Street Estimates (1) $7.53 $7.63 $7.76 $3.68 $1.85 ($3.06) $1.25 $7.53 $7.22 $7.69 $0.73 ($3.95) ($0.26) ($2.44) $9.71 $9.99 $9.81 $2.97 $12.08 $1.63 $9.71 $9.54 $9.73 $2.97 $1.62 $5.78 $12.98 $13.13 $13.30 $0.73 ($0.47) $8.46 $12.11 $13.13 $12.82 $12.97 $2.52 $7.74 $13.86 ($5.51) $5.39 $5.92 ($1.19) ($3.06) $3.33 $10.67 ($3.21) ($10.00) ($5.00) $0.00 $5.00 $10.00 $15.00 LTM Revenue 2009 Revenue 2010 Revenue LTM EBITDA 2009 EBITDA 2010 EBITDA LTM Earnings LTM Revenue 2009 Revenue 2010 Revenue LTM EBITDA 2009 EBITDA 2010 EBITDA LTM Earnings ($10.00) ($5.00) $0.00 $5.00 $10.00 $15.00 $5.54 ($4.81) ($5.31) ($5.51) ($4.46) ($4.41) ($4.84) ($4.81) ($4.64) ($4.43) ($4.84) ($5.31) ($4.26) ($4.26) ($5.67) $3.20 $1.85 $3.33 $3.33 Comparable Companies - Management Estimates (1) $2.25 Page 13

Summary Valuation Analysis Lake Summary Valuation –M&A and DCF In $ millions, except per share data Offer Price: $4.20 (1) Assumes net debt of $309.0 million based on average debt and cash for FY 2009 based on quarterly actuals and estimates provided by Company. $65.07 Low 0.19x 4.74x Mean 0.72x 8.82x Median 0.63x 8.64x High 1.85x 12.51x Offer Price Implied Multiple 0.38x 9.18x Company Statistic $1,078.1 $44.7 DCF ($4.41) ($4.01) $2.75 $10.18 $8.20 ($10.00) ($7.50) ($5.00) ($2.50) $0.00 $2.50 $5.00 $7.50 $10.00 $12.50 $15.00 $17.50 $20.00 LTM Revenue LTM EBITDA 17-21% Discount ($5.00) ($2.50) $0.00 $2.50 $5.00 $7.50 $10.00 $12.50 $15.00 $17.50 $20.00 M&A (1) EBITDA Mult. Range 6.5x - 8.5x $3.53 $3.45 ($4.41) $3.19 $5.28 $18.57 $15.06 Page 14

Summary Valuation Analysis Lake Summary Valuation – Trading Range and Premiums In $ millions, except per share data Offer Price: $4.20 $15.01 $22.38 $15.86 $50.28 Low -9.1% -9.6% -10.8% -10.8% -26.7% -43.6% -40.1% Mean 51.8% 52.6% 49.8% 49.8% 68.1% 66.8% 76.3% Median 37.5% 38.0% 37.5% 37.5% 41.6% 39.4% 42.5% High 216.7% 219.7% 219.1% 219.1% 465.2% 306.7% 771.4% Offer Price Implied Multiple 6.1% 6.7% 1.6% -10.7% 6.1% 7.7% -27.2% Company Statistic $3.96 $3.94 $4.13 $4.71 $3.96 $3.90 $5.77 Trading Range $3.86 $3.86 $3.69 $2.18 $3.60 $3.56 $4.20 $2.90 $2.20 $3.46 $5.86 $6.42 $6.42 ($5.00) ($2.50) $0.00 $2.50 $5.00 $7.50 $10.00 $12.50 $15.00 One Month Three Month Six Month One Day One Week - Average Average Starting 9/1/09 Four Week - Average One Day One Week - Point in Time Four Week - Point in Time ($5.00) ($2.50) $0.00 $2.50 $5.00 $7.50 $10.00 $12.50 $15.00 Premiums - Reverse Split Closing Price Trading Range $5.45 $6.01 $6.01 $6.47 $7.05 $10.17 $6.66 $5.61 Premiums - M&A $6.51 $5.44 $8.22 $5.43 $3.21 $3.14 $12.54 $12.59 $5.68 $6.19 $13.18 Page 15

The Comparable Public Company Analysis reviews securities of publicly-traded companies deemed comparable to the Company’s business. It is generally accepted that share pricing in the public market reflects the value of a minority interest and does not reflect any control premium. Further, share pricing in the public market incorporates a wide range of factors including general economic conditions, interest rates, inflation and investor perceptions. The analysis focused on publicly-traded companies with the following SIC codes: 4941 Sporting Goods and Bicycle Shops; and 4940 Miscellaneous Shopping Goods Stores. Market capitalizations between $15 million and $3.5 billion. Companies which Greene Holcomb & Fisher deemed similar to the Company’s business. The search yielded the following 5 companies: Comparable Public Company Analysis Big 5 Sporting Goods Corp. Cabela’s Inc. Dick’s Sporting Goods Inc. Golfsmith International Holdings Inc. Hibbett Sports, Inc. Appendix A Page 17

Page 18 Appendix A (1) Total shares outstanding calculated using the treasury stock method to incorporate outstanding options and warrants. (2) Assumes net debt of $309.0 million based on average debt and cash for FY 2009 based on quarterly actuals and estimates provided by Company. Comparable Public Company Analysis (1,2) ($ in millions - except per share data) 09/17/09 LTM CY 09E CY 10P LTM CY 09E CY 10P LTM CY 09E CY 10P Big 5 Sporting Goods Corp. $15.00 $323 $397 0.46x 0.45x 0.44x 8.52x 7.50x 6.87x 20.83x 16.67x 14.71x Cabela's Inc. $13.20 $889 $930 0.36x 0.36x 0.36x 4.60x 4.32x 4.31x 12.11x 11.38x 11.00x Dick's Sporting Goods Inc. $22.88 $2,748 $2,725 0.65x 0.64x 0.60x 8.58x 8.71x 7.89x 20.80x 21.19x 18.75x Golfsmith International Holdings Inc. $2.58 $41 $63 0.18x 0.18x 0.18x 6.11x 5.84x 4.18x NEG NM 13.58x Hibbett Sports, Inc. $18.25 $525 $510 0.90x 0.89x 0.83x 8.71x 8.91x 7.76x 19.35x 20.05x 16.90x Low 0.18x 0.18x 0.18x 4.60x 4.32x 4.18x 12.11x 11.38x 11.00x Mean 0.51x 0.50x 0.48x 7.30x 7.06x 6.20x 18.27x 17.32x 14.99x Median 0.46x 0.45x 0.44x 8.52x 7.50x 6.87x 20.08x 18.36x 14.71x High 0.90x 0.89x 0.83x 8.71x 8.91x 7.89x 20.83x 21.19x 18.75x Lake (Street) $3.96 $96 $405 0.38x 0.37x 0.35x 9.05x 10.20x 7.20x NEG NEG 11.31x Lake (Management) 0.38x 0.37x 0.35x 9.05x 8.21x 5.59x NEG 14.47x NA Company Value Company Value / Revenue Company Closing Price @ Market Cap Price / Earnings Company Value / EBITDA

Page 19 Comparable Public Company Analysis Appendix A ($ in millions - except per share data) LTM CY 09E CY 10P LTM CY 09E CY 10P LTM CY 09E CY 10P Big 5 Sporting Goods Corp. (1) $869 $884 $912 $47 $53 $58 $0.72 $0.90 $1.02 Cabela's Inc. (2) $2,580 $2,584 $2,601 $202 $215 $216 $1.09 $1.16 $1.20 Dick's Sporting Goods Inc. (3) $4,218 $4,275 $4,540 $318 $313 $346 $1.10 $1.08 $1.22 Golfsmith International Holdings Inc. (4) $353 $346 $357 $10 $11 $15 ($0.12) $0.01 $0.19 Hibbett Sports, Inc. (5) $569 $576 $614 $58 $57 $66 $0.94 $0.91 $1.08 Lake (Street) (6) $1,078 $1,102 $1,145 $45 $40 $56 ($0.26) ($0.04) $0.35 Lake (Management) (6) $1,078 $1,080 $1,141 $45 $49 $72 ($0.26) $0.27 NA (1) LTM as of 6/28/09; LTM EBITDA includes $1.5 million charge due to company error in reporting of rent expense. (2) LTM as of 6/27/09; LTM EBITDA excludes $13.4 million in impairment charges. (3) LTM as of 8/1/09; LTM EBITDA excludes $216 million of impairment charges and gains on sale of assets. (4) LTM as of 7/4/09; LTM EBITDA excludes $887,000 of stock based compensation, pre-opening costs and restructuring charges. (5) LTM as of 8/1/09. (6) LTM as of 8/29/09. Source: LTM from company filings and CapIQ; estimates from Thomson Financial. EBITDA Company Revenue EPS

Page 20 Comparable Public Company Analysis Appendix A ($ in millions - except per share data) 5yr Gross EBIT EBITDA Big 5 Sporting Goods Corp. $3 $78 24.0% 13.0% 32.7% 3.3% 5.4% Cabela's Inc. $481 $522 58.7% 11.4% 39.4% 5.3% 7.8% Dick's Sporting Goods Inc. $51 $29 1.0% 16.2% 27.6% 0.0% 7.5% Golfsmith International Holdings Inc. $6 $28 68.8% 10.0% 33.6% 0.0% 2.9% Hibbett Sports, Inc. $16 $0 0.1% 15.8% 32.5% 7.8% 10.3% Lake (1) $2 $310 324.0% 12.0% 20.0% 0.7% 4.1% (1) Average debt and cash for FY 2009 based on quarterly actuals and estimates provided by Company. Company LTM Margins EPS Growth Debt Cash Debt/ Market Cap

Appendix B The Comparable Transactions Analysis encompasses a review of transactions involving acquired entities deemed comparable to the Company’s business. This analysis is based on information obtained from SEC filings, public company disclosures, press releases, industry and popular reports, databases and other sources. The analysis reviewed a group of transactions selected based on the following: Transactions where the target had one of the following SIC codes: 4941 Sporting Goods and Bicycle Shops; and 4940 Miscellaneous Shopping Goods Stores. Transaction value greater than $50 million and less than $3.5 billion; Public and private targets in which greater than 90% of the company was acquired; Transactions announced between January 1, 2005 and September 17, 2009; Excludes repurchases, minority interests and hostile transactions; and Transactions which GH&F deemed similar to the proposed transaction. This search process yielded 21 transactions which satisfied the selection criteria. Comparable Transactions Analysis Detail Page 22

Page 23 Appendix B Comparable Transaction Analysis (1) (1) Per Capital IQ, SDC and public filings. (Dollars in Millions) Enterprise Value / Date Announced Date Effective Target Name Acquirer Name Value of Transaction Enterprise Value LTM Net Sales LTM EBITDA LTM EBITDA Margin LTM Net Sales LTM EBITDA 9/3/2008 10/15/2008 Hudson Group Dufry AG $770.7 $818.7 $666.0 $85.0 12.8% 1.2x 9.6x 8/14/2008 9/24/2008 Sleep Country Canada Income Fund Westerkirk Capital Inc., Others $311.5 $324.3 $345.5 $37.6 10.9% 0.9x 8.6x 12/6/2007 12/6/2007 Overton's, Inc. Gander Mountain Co. $70.0 $70.0 $93.5 $8.6 9.2% 0.7x 8.1x 11/26/2007 11/30/2007 Chick's Sporting Goods, Inc. Dick's Sporting Goods Inc. $74.2 $74.2 $126.7 NA NA 0.6x NA 9/17/2007 11/15/2007 Factory Card & Party Outlet Corp. Amscan Holdings Inc. $69.6 $69.1 $240.9 $7.2 3.0% 0.3x 9.7x 6/27/2007 10/9/2007 Guitar Center Inc. Bain Capital, LLC $2,093.4 $2,079.5 $2,093.7 $170.2 8.1% 1.0x 12.2x 3/20/2007 5/29/2007 Claire's Stores Inc. Apollo Management, Others $3,079.8 $2,738.9 $1,481.0 $315.3 21.3% 1.8x 8.7x 2/8/2007 3/16/2007 GNC Corp. Ares Private Equity, Teachers' Private Capital $1,469.3 $1,445.2 $1,487.1 $142.4 9.6% 1.0x 10.2x 11/13/2006 2/13/2007 Golf Galaxy, Inc. Dick's Sporting Goods Inc. $223.3 $213.5 $250.1 $19.1 7.7% 0.9x 11.2x 7/13/2006 10/26/2006 Petco Animal Supplies Inc. Leonard Green & Partners, Texas Pacific Group $1,828.3 $1,795.1 $2,037.5 $213.8 10.5% 0.9x 8.4x 5/9/2006 5/31/2006 ShopKo Stores Inc. Spirit Finance Corporation $1,116.9 $1,083.7 $3,068.5 $195.6 6.4% 0.4x 5.5x 1/22/2006 5/3/2006 Sports Authority Inc. Leonard Green & Partners, Green Equity Investors $1,424.5 $1,396.2 $2,482.0 $171.5 6.9% 0.6x 8.1x 1/18/2006 4/13/2006 Burlington Coat Factory Warehouse Bain Capital, LLC $2,070.3 $1,864.9 $3,351.4 $273.4 8.2% 0.6x 6.8x 10/29/2005 3/6/2006 Northern Department Store Group Bon-Ton Stores, Inc. $1,185.0 $1,185.0 $2,200.0 NA NA 0.5x NA 11/8/2005 2/14/2006 Linens 'n Things Apollo Management, L.P., Others $1,300.8 $1,263.1 $2,649.3 $149.9 5.7% 0.5x 8.4x 10/18/2005 12/28/2005 ShopKo Stores Inc. Sun Capital Partners, Inc., Others $1,130.4 $1,167.6 $3,068.5 $195.6 6.4% 0.4x 6.0x 10/27/2005 12/27/2005 Goody's Family Clothing Inc. Prentice Capital Management LP , GMM Capital $304.2 $235.3 $1,253.9 $24.2 1.9% 0.2x 9.7x 9/26/2005 12/23/2005 Party City Corp Amscan Holdings Inc. $360.7 $349.7 $503.9 $28.0 5.5% 0.7x 12.5x 4/17/2005 10/8/2005 Electronics Boutique Holdings Corp. GameStop Corp. $1,437.5 $1,262.2 $1,989.4 $116.8 5.9% 0.6x 10.8x 4/15/2005 10/4/2005 Brookstone Inc. Osim International Ltd., Others $440.5 $391.2 $501.7 $47.3 9.4% 0.8x 8.3x 1/9/2005 4/27/2005 Hollywood Entertainment Corp. Movie Gallery, Inc. $1,272.1 $1,078.3 $1,782.4 $227.5 12.8% 0.6x 4.7x Low $69.6 $69.1 $93.5 $7.2 1.9% 0.2x 4.7x Mean $1,049.2 $995.5 $1,508.2 $127.8 8.5% 0.7x 8.8x Median $1,130.4 $1,083.7 $1,487.1 $142.4 8.1% 0.6x 8.6x High $3,079.8 $2,738.9 $3,351.4 $315.3 21.3% 1.8x 12.5x

Appendix C GH&F performed a premium analysis on transactions in which target company performed a reverse split and subsequently de-registered shares under the Securities Exchange Act of 1934, as amended. The analysis examines the premiums represented by the payment per share of the transactions as compared to the average market prices of the targets over certain periods of time. This analysis is based on information obtained from SEC filings, public company disclosures, press releases, databases and other sources. The comparable transactions used in this analysis were selected based on the following: All industry types; and Deals completed between January 1, 2006 and September 17, 2009. This search yielded 31 transactions which satisfied the selection criteria. Premium Analysis Detail – Reverse Stock Splits, Going Private Page 25

Appendix C Premium Analysis Detail – Reverse Stock Splits Going Private (1) (1) Per Capital IQ, SDC and public filings. Split Mechanics Premium Over Average Price Announcement Effective Company Split Payment per Share One Day One Week Four Week 5/5/2009 6/29/2009 Callwave, Inc. 1:5,000 $1.15 43.8% 39.9% 55.8% 1/21/2009 3/30/2009 Renegy Holdings, Inc. 1:2,000 $0.74 89.7% 93.5% 114.5% 12/10/2008 3/20/2009 Grill Concepts, Inc. 1:35 $1.50 100.0% 71.2% 80.5% 9/29/2008 3/23/2009 The Middleton Doll Company 1:1,000 $0.50 117.4% 142.7% 141.7% 8/25/2008 2/20/2009 Computer Horizons Corp. 1:500 $0.30 -9.1% -9.6% -10.8% 7/17/2008 1/21/2009 Careguide, Inc. 1:50,000 $0.14 133.3% 100.0% 96.1% 6/30/2008 10/6/2008 Gouverneur Bancorp, Inc. 1:100 $10.00 24.1% 19.8% 17.4% 4/14/2008 8/20/2008 Peoples-Sidney Financial Corp. 1:600 $13.47 11.8% 11.8% 16.5% 2/29/2008 5/7/2008 First Bancorp of Indiana 1:300 $14.00 16.6% 16.0% 13.9% 1/2/2008 1/4/2008 Oregon Pacific Bancorp 1:500 $13.00 43.6% 43.6% 43.3% 12/21/2007 5/20/2008 Jaclyn Inc. 1:250 $10.21 70.2% 60.0% 56.9% 10/5/2007 2/7/2008 Magstar Technologies, Inc. 1:2,000 $0.43 41.7% 93.2% 58.9% 7/2/2007 11/13/2007 Citizens Financial Corp. 1:250 $7.25 10.9% 10.9% 11.9% 5/1/2007 12/6/2007 Harold's Stores, Inc. 1:1,000 $0.30 25.0% 33.9% -4.4% 2/21/2007 7/23/2007 Ohio State Bankshares 1:150 $95.00 1.7% 1.7% 1.7% 2/12/2007 8/13/2007 BNS Holding Inc. 1:200 $13.62 0.0% 0.1% 0.7% 1/8/2007 6/14/2007 K-Tel International, Inc. 1:5,000 $0.10 216.7% 216.7% 153.3% 10/16/2006 2/7/2007 Ergo Science Corp. 1:200 $2.10 200.0% 219.7% 219.1% 8/15/2006 1/10/2007 Pegasus Communications Corporation 1:100 $3.25 44.4% 41.2% 39.1% 6/1/2006 1/24/2006 Eupa International Corporation 1:7,999 $0.40 NM NM NM 5/16/2006 9/8/2006 Bactolac Pharmaceuticals 1:500 $4.00 11.1% 9.7% 9.3% 3/31/2006 8/30/2006 Mestek, Inc. 1:5,000 $15.24 21.8% 23.0% 20.5% 1/26/2006 12/4/2006 Home City Financial Corp. 1:210 $17.10 11.9% 12.9% 13.4% 1/24/2006 8/4/2006 Yadkin Valley Company 1:50 $78.00 39.3% 39.3% 39.3% 11/2/2005 1/19/2006 Collins Industries, Inc. 1:300 $7.70 14.0% 14.6% 13.9% 10/21/2005 1/10/2006 Sagient Research Systems Inc. 1:101 $0.12 33.3% 50.0% 76.5% 10/14/2005 3/13/2006 Major Automotive Companies, Inc. 1:1,000 $1.90 35.7% 43.7% 33.9% 10/7/2005 3/30/2006 ITEC Attractions Inc. 1:381,426 $0.27 11.1% 11.2% 11.5% 9/16/2005 3/15/2006 PVC Container Corp 1:2,000 $2.39 99.2% 94.3% 96.1% 8/29/2005 2/15/2006 Hia Inc. 1:45,000 $0.60 39.5% 36.4% 37.9% 6/21/2005 9/1/2006 American Education Corp. 1:2,000 $11.00 54.5% 36.7% 37.0% Low -9.1% -9.6% -10.8% Mean 51.8% 52.6% 49.8% Median 37.5% 38.0% 37.5% High 216.7% 219.7% 219.1% Page 26

Appendix C Additionally, GH&F performed a Premium Analysis that involved a review of transactions involving the sale of public companies. The analysis examines the premiums represented by the purchase price per share of the transactions as compared to the market prices of the targets at certain points in time. This analysis is based on information obtained from SEC filings, public company disclosures, press releases, databases and other sources. The comparable transactions used in this analysis were selected based on the following: All industry types except for oil and gas and banking industries; Deals completed between September 17, 2007 and September 17, 2009 with transaction values between $50 million and $250 million; Transactions in which greater than 90% of the target was acquired; and Excludes share repurchases and hostile transactions. This search yielded 83 transactions which satisfied the selection criteria. Premium Analysis Detail Page 27

Appendix C Premium Analysis Detail Date Premiums Effective Target Name Business Description Acquiror Name One Day One Week Four Week 09/09/2009 FiberNet Telecom Group Inc Pvd telecommun svcs Zayo Group LLC 15.2% 10.3% 9.1% 08/13/2009 SoftBrands Inc Dvlps,whl entrp software Steel Holdings Inc 95.7% 91.7% 206.7% 07/30/2009 Cornerstone Therapeutics Inc Mnfr pharm Chiesi Farmaceutici SpA -26.7% -3.5% 49.1% 07/27/2009 Borland Software Corp Dvlp,whl database software Micro Focus International PLC 87.5% 100.0% 167.9% 06/26/2009 SiRF Technology Holdings Inc Mnfr,whl semiconductor CSR PLC 90.0% 103.2% 25.9% 06/24/2009 Catapult Communications Corp Dvlp commun software IXIA 9.5% 23.8% 34.5% 06/01/2009 Gevity HR Inc Pvd human capital mgmt svcs TriNet Group Inc 97.0% 88.7% 75.4% 04/03/2009 Hifn Inc Mnfr semiconductors EXAR Corp 58.7% 37.0% 20.5% 03/31/2009 Pharmanet Development Grp Inc Pvd clinical research svcs JLL Partners Inc 273.1% 240.1% 300.0% 03/16/2009 American Land Lease Inc RE invest trust Green Courte Partners LLC 264.1% 273.7% 305.7% 02/25/2009 Targanta Therapeutics Corp Biopharm co Medicines Co 96.1% 227.9% 102.0% 02/02/2009 Meadow Valley Corp Pvd constr contractor svcs Insight Equity I LP 22.2% 19.7% 25.0% 01/28/2009 Transmeta Corp Mnfr semiconductor Novafora Inc 38.2% 38.4% 29.5% 01/27/2009 Centerplate Inc Pvd catering,concession svcs Kohlberg & Co LP -17.5% -43.6% -39.0% 01/07/2009 Genelabs Technologies Inc Mnfr pharm prod GlaxoSmithKline PLC 465.2% 306.3% 202.3% 01/05/2009 Memory Pharmaceuticals Corp Biopharmaceutical co Roche Holding AG 317.8% 306.7% 771.4% 01/05/2009 Turbochef Technologies Inc Mnfr,whl advanced ovens The Middleby Corp 15.5% 23.5% 54.8% 12/29/2008 SM&A Pvd sys engineering svcs Odyssey Invest Partners LLC 159.3% 131.5% 109.0% 12/23/2008 Pharmacopeia Inc Biotech co Ligand Pharmaceuticals Inc 43.8% 39.4% -22.5% 11/24/2008 Cherokee International Corp Mnfr power supplies Lineage Power Holdings Inc 33.3% 48.8% 16.8% 11/20/2008 Ashworth Inc Mnfr,whl sport apparel TaylorMade-adidas Golf 9.8% -26.4% -40.1% 11/03/2008 Pharsight Corp Dvlp Internet software Tripos LP 37.8% 33.5% 28.2% 11/03/2008 Captaris Inc Dvlp bus automation software Open Text Corp 28.3% 27.3% 35.2% 10/30/2008 Napster Inc Dvlp digital media software Best Buy Co Inc 94.9% 97.8% 82.8% 10/27/2008 Econergy Intl PLC Pvd electric svcs Suez Energy SA Participacoes 41.4% 41.7% 50.5% 10/24/2008 Nevada Chem Inc Mnfr,whl liquid sodium cyanide Investor Group 37.7% 34.4% 35.7% 10/10/2008 Catalyst Semiconductor Inc Mnfr,whl semiconductors ON Semiconductor Corp 53.7% 54.1% 42.5% 10/07/2008 Motive Inc Dvlp mgmt software Alcatel Lucent SA 52.7% 23.9% 53.8% 09/29/2008 Memry Corp Mnfr nickel-titanium prod SAES Getters SpA 73.1% 74.3% 69.6% 09/16/2008 Industrial Rubber Products Inc Mnfr,whl elastomeric materials Industrial Rubber Products Inc 57.1% 50.0% 50.0% 09/05/2008 Tumbleweed Communications Corp Dvlp messaging software Tornado Acquisition Corp 52.5% 46.0% 104.6% 08/29/2008 Credence Systems Corp Mnfr automatic test equip LTX Corp 37.8% 46.0% 64.1% 08/29/2008 Optium Corp Mnfr optical subsys Finisar Corp 2.3% -0.1% 15.8% Page 28

Appendix C Premium Analysis Detail Date Premiums Effective Target Name Business Description Acquiror Name One Day One Week Four Week 08/21/2008 SGX Pharmaceuticals Inc Biotech co Eli Lilly & Co 109.8% 106.9% 125.6% 08/21/2008 HireRight Inc Pvd employment screening svcs US Investigations Services Inc 95.2% 95.2% 121.9% 08/15/2008 MEDecision Inc Dvlp health care mgmt software Health Care Service Corp 309.4% 288.9% 369.8% 08/15/2008 CAM Commerce Solutions Inc Dvlp retailing software Great Hill Partners LLC 7.9% 12.1% 10.4% 08/06/2008 Barrier Therapeutics Inc Mnfr pharm Stiefel Laboratories Inc 135.8% 89.5% 66.7% 08/05/2008 Iomai Corp Mnfr vaccine,immune sys Intercell AG 147.2% 180.9% 170.5% 08/04/2008 Angelica Corp Pvd med linen supply svcs Clothesline Holdings Inc 33.7% 29.3% 33.8% 08/01/2008 Radyne Corp Mnfr,whl data commun equip Comtech Telecommun Corp 48.6% 47.6% 34.8% 07/07/2008 EP MedSys Inc Mnfr,dvlp med,hosp supplies St Jude Medical Inc 112.8% 93.6% 93.6% 07/02/2008 Clayton Holdings Inc Pvd consulting svcs Greenfield Partners LLC 24.5% 10.7% 40.9% 07/01/2008 Golden Cycle Gold Corp Gold,copper mining AngloGold Ashanti Ltd 28.7% 32.2% 28.7% 06/30/2008 SYS Technologies Inc Pvd info connectivity svcs Kratos Defense & Security 70.2% 65.9% 96.7% 06/30/2008 ESS Technology Inc Mnfr semiconductors Imperium Partners Group LLC 36.7% 36.7% 42.6% 06/27/2008 Kosan Biosciences Inc Pvd coml research svcs Bristol-Myers Squibb Co 229.3% 243.8% 231.3% 06/18/2008 NetManage Inc Dvlp application software Micro Focus International PLC 73.5% 74.3% 71.4% 06/17/2008 Restoration Hardware Inc Own,op home furnishings stores Catterton Partners 67.9% 57.9% 38.5% 06/11/2008 GMH Communities Trust RE invest trust American Campus Comm Inc -1.0% -3.1% 19.3% 06/10/2008 Encysive Pharmaceuticals Inc Biotechnology co Pfizer Inc 117.6% 200.5% 261.5% 06/09/2008 Iomega Corp Mnfr,whl data storage devices EMC Corp 44.7% 37.5% 35.1% 06/06/2008 Specialized Health Prod Intl Mnfr disposable med devices CR Bard Inc 8.7% 13.6% 22.0% 05/22/2008 WJ Communications Inc Mnfr RF integrated circuits TriQuint Semiconductor Inc 17.7% 17.7% 56.3% 05/16/2008 Synplicity Inc Dvlp IC design software Synopsys Inc 52.1% 54.4% 81.8% 05/02/2008 Renovis Inc Mnfr pharm Evotec AG 41.6% 38.7% 52.2% 04/30/2008 SigmaTel Inc Mnfr semiconductors Freescale Semiconductor Inc 67.6% 79.6% 53.1% 04/10/2008 Criticare Systems Inc Mnfr,whl monitoring instr Opto Circuits(India)Ltd 19.0% 26.4% 71.3% 04/01/2008 Manatron Inc Dvlp,market web-base software Thoma Cressey Bravo Inc 36.4% 37.9% 34.8% 04/01/2008 E-Z-EM Inc Mnfr med imaging prod Bracco Diagnostics Inc 27.9% 33.3% 23.6% 04/01/2008 Burke-Parsons-Bowlby Corp Mnfr pressure treated wood Stella-Jones Inc 27.4% 27.4% 27.4% 03/21/2008 Lifecore Biomedical Inc Mnfr dental implants prod EM Warburg Pincus & Co Inc 32.4% 26.9% 28.2% 03/06/2008 Document Sciences Corp Dvlp content software EMC Corp 79.1% 75.8% 71.3% 03/05/2008 VistaCare Inc Pvd hospice care svcs Odyssey HealthCare Inc 20.1% 17.7% 18.0% 02/13/2008 American Bank Note Holographic Pvd sec holograms svcs JDS Uniphase Corp 11.5% 9.5% 23.6% 02/11/2008 Carrier Access Corp Mnfr broadband access equip Turin Networks Inc 4.0% 7.0% 25.0% Page 29

Appendix C Premium Analysis Detail Date Premiums Effective Target Name Business Description Acquiror Name One Day One Week Four Week 02/04/2008 Traffix Inc Pvd Internet mktg svcs New Motion Inc 122.4% 118.3% 106.8% 01/08/2008 Printronix Inc Mnfr,whl printers Vector Capital Corp 18.3% 18.5% 18.5% 12/31/2007 Coley Pharmaceutical Group Inc Pvd research,dvlp svcs Pfizer Inc 166.7% 145.4% 169.4% 12/28/2007 Natrol Inc Mnfr dietary supplements Plethico Pharmaceuticals Ltd 93.8% 69.2% 39.7% 12/13/2007 Cost-U-Less Inc Own,op stores North West Co Fund 11.9% 7.4% 15.4% 11/21/2007 National Home Health Care Corp Pvd home health care svcs Investor Group 7.9% 9.2% 21.4% 11/16/2007 Factory Card Outlet & Party Own,operate card stores AAH Holdings Corp 105.0% 147.8% 143.4% 11/07/2007 HemoSense Inc Mnfr,dvlp,whl monitoring sys Inverness Med Innovations Inc 33.9% 33.8% 33.6% 11/01/2007 National Health Realty Inc Real estate investment trust National HealthCare Corp 6.0% 7.5% 7.8% 10/29/2007 Smithway Motor Xpress Corp Pvd trucking svcs Western Express Inc 23.5% 20.0% 8.3% 10/22/2007 Champps Entertainment Inc Own, op dining restaurants F&H Acquisition Corp -17.7% -14.5% -16.4% 10/01/2007 Web.com Inc Pvd hosting,consulting svcs Website Pros Inc 25.4% 30.0% 40.4% 09/25/2007 American Technical Ceramics Mnfr ceramic capacitors AVX Corp 47.2% 54.3% 62.0% 09/24/2007 New Brunswick Scientific Co Mnfr,whl lab equip;hldg co Eppendorf AG 43.2% 40.2% 47.3% 09/24/2007 NewWest Gold Corp Gold mining Fronteer Development Group Inc 36.0% 45.7% 27.7% 09/21/2007 CompuDyne Corpo Mnfr security systems Investor Group 34.4% 31.3% 24.8% 09/20/2007 Everlast Worldwide Inc Mnfr,whl sports prod Brands Holdings Ltd 42.6% 49.6% 67.2% Low -26.7% -43.6% -40.1% Mean 68.1% 66.8% 76.3% Median 41.6% 39.4% 42.5% High 465.2% 306.7% 771.4% Total - Four Week % of Total Total Deals 83 100% Deals with a Negative Premium 4 5% Deals with Premium under 20% 14 17% Deals with Premium under 30% 29 35% Page 30

Appendix D The Discounted Cash Flow (“DCF”) Analysis is used to calculate a range of theoretical values for the Company based on: (i) the net present value of the estimated future cash flows generated by the Company; and (ii) a terminal value, which is an estimate of the future value of the Company. The projected financial information was provided by the Company’s management and represents seven months of actual results and five months of forecast results for fiscal year 2009 and the 3/23 forecast for fiscal years 2010-2015. For purposes of this analysis, we used a range of discount rates from 17.0% to 21.0% and a range of EBITDA multiples for the terminal value of 6.5x to 8.5x. Multiples were determined by considering growth rates of comparable companies and information on trading multiples of comparable companies and transaction multiples of comparable transactions. Additionally, we also considered the nature of the Company’s business, the size of the Company relative to the comparable companies, its position in the industry, the inherent risk of the improved performance in an increasingly competitive industry and our recent experience in the M&A marketplace. Discount rates were based on the weighted average cost of capital (“WACC”) for comparable companies, business specific risk, including, without limitation, the Company’s track record in not meeting internal financial forecasts, the issues associated with growing the business as projected in the financial information provided by the Company management, size of the Company relative to its peers and other relevant factors. Discounted Cash Flow Analysis Detail Page 32

Page 33 Appendix D Discounted Cash Flow Analysis ($ in millions except per share data) 2009P Ending 1/30/10 (1) 2010P Ending 1/29/11 2011P Ending 1/28/12 2012P Ending 2/2/13 2013P Ending 2/1/14 2014P Ending 1/31/15 2015P Ending 1/30/16 -2 -2 -2 Present Total Sales $527 $1,141 $1,189 $1,237 $1,287 $1,337 $1,388 Value of Operating Cash Flow (Adjusted EBITDA) 56 72 80 83 91 94 98 Cash Flows Operating Income (EBIT) 43 43 53 58 68 74 82 Less: Federal Taxes @ 34.0% (15) (15) (18) (20) (23) (25) (28) Less State Taxes (2) (1) (1) (1) (1) (1) (1) (2) After-Tax Operating Income 28 28 34 37 44 48 52 Depreciation & Amortization 13 29 27 25 23 19 16 Capital Expenditures (6) (16) (16) (17) (17) (16) (16) Change in Working Capital 53 (0) (8) (8) (8) (7) (7) After-Tax Operating Cash Flows 88 41 37 37 42 44 45 Adjusted EBITDA Multiple: 7.5x 0 0 0 0 0 0 732 Total Cash Flows $88 $41 $37 $37 $42 $44 $777 Present NOL Subject to 382 (unwinding amounts) $3 $1 Value of NOL Not Subject to 382 (3) 96 81 NOL Beginning Balance NOL $99 $82 $39 $0 $0 $0 $0 EBIT (Full Year) 18 43 53 58 68 74 82 NOL Usage 18 43 39 - - - - Taxes Saved @ 34.0% 6 15 13 - - - - Ending Balance NOL 81 39 - - - - - Benefit to Free Cash Flow 6 15 13 - - - - Total Total Cash Flows Plus Benefit of NOL $94 $56 $50 $37 $42 $44 $777 Present Value of Cash Flows Enterprise Value Sensitivity Analysis NPV Cash Flows $210 NPV Terminal Value 240 $476 17.0% 19.0% 21.0% NPV of NOL Carry Forward 26 Adjusted 6.5x $477 $444 $414 Total Enterprise Value $476 EBITDA 7.5x $512 $476 $443 Multiple 8.5x $548 $508 $472 Plus: Cash (4) 2 Less: Debt (4) 349 Equity Value Sensitivity Analysis Total Equity Value $128 Discount Rate $128 17.0% 19.0% 21.0% EBITDA 6.5x $129 $96 $67 Assumptions Multiple 7.5x $165 $128 $95 Discount Rate 19.0% 8.5x $200 $160 $124 Adjusted EBITDA Multiple 7.5x Federal Tax Rate 34.0% Equity Value Sensitivity Analysis (Shares) State Tax Rate (2) 2.0% Discount Rate NPV Disc Cash Flow 17.0% 19.0% 21.0% EBITDA 6.5x $5.32 $3.97 $2.75 Multiple 7.5x $6.77 $5.28 $3.94 8.5x $8.20 $6.58 $5.12 Discount Rate

Lake Financial Information Income Statement ($ in millions) 2005 Ended 1/28/06 2006 Ended 2/3/07 2007 Ended 2/2/08 2008 Ended 1/31/09 2009P Ending 1/30/10 2010P Ending 1/29/11 2011P Ending 1/28/12 2012P Ending 2/2/13 2013P Ending 2/1/14 2014P Ending 1/31/15 2015P Ending 1/30/16 LTM 8/30/09 Last 5 Months 2009 Sales $804.5 $911.4 $969.4 $1,064.6 $1,079.5 $1,140.8 $1,188.6 $1,237.4 $1,286.7 $1,336.9 $1,387.7 $1,078.1 $527.2 Growth 13.3% 6.4% 9.8% 1.4% 5.7% 4.2% 4.1% 4.0% 3.9% 3.8% Cost of Sales $612.0 $686.7 $728.6 $794.1 $691.3 $822.6 $849.3 $881.6 $910.9 $943.3 $974.6 $862.3 $268.1 Gross Profit $192.4 $224.7 $240.8 $270.5 $388.3 $318.2 $339.3 $355.8 $375.7 $393.6 $413.0 $215.8 $259.1 Margin 23.9% 24.7% 24.8% 25.4% 36.0% 27.9% 28.5% 28.8% 29.2% 29.4% 29.8% 20.0% 49.1% Operating Expenses $194.6 $209.7 $252.1 $260.8 $370.3 $275.0 $285.8 $297.4 $307.7 $319.1 $331.2 $208.2 $216.2 EBIT ($2.2) $15.0 ($11.3) $9.7 $17.9 $43.2 $53.5 $58.3 $68.0 $74.5 $81.9 $7.6 $42.9 Margin NEG 1.6% NEG 0.9% 1.7% 3.8% 4.5% 4.7% 5.3% 5.6% 5.9% 0.7% 8.1% Depreciation and Amortization $18.2 $22.0 $26.9 $37.4 $30.2 $28.8 $26.6 $24.8 $23.2 $19.2 $15.8 $37.1 $12.6 EBITDA $16.0 $37.0 $15.5 $47.1 $48.1 $71.9 $80.1 $83.1 $91.2 $93.7 $97.6 $44.7 $55.5 Margin 2.0% 4.1% 1.6% 4.4% 4.5% 6.3% 6.7% 6.7% 7.1% 7.0% 7.0% 4.1% 10.5% Pro Forma Adjustments Nonrecurring Expenses (1) $0.0 $0.0 $6.5 $0.4 $1.2 $0.5 $0.0 $0.0 $0.0 $0.0 $0.0 ($0.0) $0.4 Pro Forma Adjusted EBITDA $16.0 $37.0 $22.0 $47.5 $49.3 $72.4 $80.1 $83.1 $91.2 $93.7 $97.6 $44.7 $56.0 Margin 2.0% 4.1% 2.3% 4.5% 4.6% 6.3% 6.7% 6.7% 7.1% 7.0% 7.0% 4.1% 10.6% Source: Company financial statements and management forecast. (1) Represents expenses related to store closings, severance costs, write off of internal web development (2007 only) and reversal of exit costs for reopened outlet stores (2008 only). Page 35