EX-99.(C)(2) 13 a2077167zex-99_c2.htm EXHIBIT 99(C)(2)
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Exhibit 99(c)(2)

Presentation to the Special Committee of
the Board of Directors of Westminster Capital, Inc.

April 9, 2002

HOULIHAN LOKEY HOWARD & ZUKIN
1930 Century Park West
Los Angeles, California 90067
(310) 553-8871    •    http://www.hlhz.com
Los Angeles    •    New York    •    Chicago    •    San Francisco
Washington, D.C.    •    Minneapolis    •    Dallas    •    Atlanta    •    Toronto

Table of Contents

 
   Section
Westminster Capital Valuation Overview   A
One Source Industries, LLC   B
Matrix Visual Solutions   C
Westland   D
Physician Advantage   E
Exhibits    
  Houlihan Lokey Acquisition of Minority Interest Study   1

i

Westminster Capital Valuation Overview

1


Westminster Capital

Westminster Capital Valuation Overview

Engagement Overview

        Westminster Capital, Inc. ("Company" hereinafter) is considering tendering for those shares of the Company's stock which are held by the public ("Public Shareholders") as well as approximately 20 percent of the outstanding shares which are held by a shareholder who has the ability to elect a member to the Company's Board of Directors and is related to two members of the Company's Board of Directors (the "Related Shareholder" and together with the Public Shareholders, the "Shareholders"). Furthermore, we have been assured by the Company that the Company has no plans nor any intention to (i) pursue a short or long form merger subsequent to the tender offer; or (ii) to liquidate the Company. Such transaction and other related transactions disclosed to Houlihan Lokey are referred to herein as the "Transaction." It is our understanding that the Company has formed a Special Committee of the Board of Directors (the "Committee") to consider certain matters relating to the Transaction.

        The Committee has requested that Houlihan Lokey render an opinion as to the fairness, from a financial point of view, to the Shareholders of the Company of the consideration to be received by them in connection with the Transaction.

        The valuation analysis below provides support for what we believe would be a fair range of value for the tender offer.

Valuation Date

        March 8, 2002

Due Diligence Summary

        In connection with this analysis, we have made such reviews, analyses and inquiries as we have deemed necessary and appropriate under the circumstances. Among other things, we have:

    •
    reviewed the Company's annual reports to shareholders and on Form 10-K for the four fiscal years ended December 31, 2001, which the Company's management has identified as being the most current financial statements available;

    •
    reviewed One Source Industries, LLC's audited financial statements for the three fiscal years ended December 31, 2000, unaudited financial statements for the fiscal year ending December 31, 2001 and interim financial statements for the one month period ended January 31, 2001 and 2002, which One Source Industries, LLC's management has identified as being the most current financial statements available;

    •
    reviewed Matrix Visual Solutions' audited financial statements for the three fiscal years ended September 30, 1999, December 31, 2000 and December 31, 2001 and interim financial statements for the one month period ended January 31, 2001 and 2002, which Matrix Visual Solutions' management has identified as being the most current financial statements available;

    •
    reviewed Westland Associates Inc.'s unaudited financial statements for the four fiscal years ended December 31, 2001 and interim financial statements for the one month period ended January 31, 2001 and 2002, which Westland Associates Inc.'s management has identified as being the most current financial statements available;

2

    •
    reviewed Physician Advantage, LLC's unaudited financial statements for the four fiscal years ended December 31, 1998 through December 31, 2001 and interim financial statements for the one month period ended January 31, 2001 and 2002, which Physician Advantage, LLC's management has identified as being the most current financial statements available;

    •
    met with certain members of the senior management of the Company and of each of the holding companies, including One Source Industries, LLC, Matrix Visual Solutions, Westland Associates Inc., and Physician Advantage, LLC (the "Holding Companies"), to discuss the operations, financial condition, future prospects and projected operations and performance of the Company and the Holding Companies;

    •
    visited certain facilities and business offices of the Company, One Source Industries, LLC and Matrix Visual Solutions;

    •
    reviewed forecasts and projections prepared by the Company's and Holding Companies' management with respect to the Holding Companies for the fiscal year ended December 31, 2002;

    •
    reviewed the historical market prices and trading volume for the Company's publicly traded securities;

    •
    reviewed certain other publicly available financial data for certain companies that we deem comparable to the Holding Companies, and publicly available prices and premiums paid in other transactions that we considered similar to the Transaction; and

    •
    conducted such other studies, analyses and inquiries as we have deemed appropriate.

Stock Trading Analysis

 
   Westminster
Capital, Inc.
  
Exchange     ASE  

Equity Analyst Coverage(1)
 
 
None
 

Total Diluted Shares Outstanding (MM)
 
 
8.12
 

Stock Price as of 4/8/02
 
$
1.89
 
   
 

Market Value of Equity (MM)
 
$
15.4
 

Public Float (MM)
 
 
2.7
 
  % of Total Shares Outstanding     32.62 %

Institutional Holdings (MM)
 
 
0.026
 
  % of Total Shares Outstanding     0.32 %
  % of Total Public Float     1.00 %
  # of Institutional Holders     3  

Average Weekly Trading Volume (MM)
 
 
0.008
 
  % of Total Shares Outstanding     0.10 %
  % of Total Public Float     0.31 %
(1)
Current Analyst Coverage.

Source: Bloomberg

3

Valuation Summary—Going Concern Analysis

 
   Equity
Value Conclusion
   Ownership
   Equity Value
to Westminster
 
   (figures in millions, except for per share values)
One Source Industries LLC   $ 8.700   $ 10.400   80 % $ 6.960   $ 8.320
Matrix Visual Solutions   $ 0.900   $ 1.600   68 % $ 0.612   $ 1.088
Westland   $ 0.000   $ 0.000   100 % $ 0.000   $ 0.000
Physician Advantage   $ 0.000   $ 0.000   70 % $ 0.000   $ 0.000
Investment Services   $ 8.736   $ 11.353   100 % $ 8.736   $ 11.353
   
 
 
 
 
Total Operating Company Valuation   $ 18.336   $ 23.353       $ 16.308   $ 20.761
   
 
 
 
 
Less: Interest-Bearing Debt(1)                   $ 0.000   $ 0.000
Total Equity Value                   $ 16.308   $ 20.761
   
 
 
 
 
Per Share Equity Value(2)                   $ 2.01   $ 2.56
   
 
 
 
 
Add: Control Premium for Going Private @ 25%                   $ 0.502   $ 0.639
   
 
 
 
 
Per Share Equity Value on a Controlling Interest Basis(2)                   $ 2.51   $ 3.19
   
 
 
 
 
(1)
All debt is associated with Matrix and capitalized leases at One Source, which is already accounted for in the individual valuations.

(2)
Based on 8.125 million shares outstanding.

4

Value of Investment Services

 
    
   Earnings
Cash(1)   $ 23.586      
Less: Working Capital Requirements(2)   $ 2.290      
   
     
Net Income(3)   $ 21.297   $ 2.343

Note Receivable Secured by Real Estate(4)
 
 
 
 
$
0.360
Accounts Receivable to Parent(5)   $ 0.450   $ 0.005
Investments in Limited Partnerships(6)   $ 2.046   $ 0.225
Loan Receivable(7)   $ 0.288   $ 0.019
         
          $ 2.952
Operating Expenses(8)         $ 1.500
         
EBIT         $ 1.452

Value of Investment Services before Liabilities(9)
 
 
 
 
$
14.515

Less: Liabilities
 
 
 
 
 
 
  Contingent Liabilities         $ 2.000
  One Source Earnout payments         $ 1.020
  Accrued Expenses and Other Liabilities         $ 1.149
  Deferred and Current Income Taxes         $ 1.610
         
Indicated Value of Investment Services         $ 8.736
         
(1)
Excludes cash at the individual business levels, which are accounted for in their individual valuations.

(2)
Additional working capital requirements for Matrix based on comparable company analysis:

Working Capital Analysis

 
   One Source
   Matrix
   Total
Actual working capital   $ 1.397   ($ 0.921 )    
Estimated required working capital based on comparable companies' median % of revenue         $ 1.369      
   
 
 
Additional cash necessary from Westminster     NMF   $ 2.290   $ 2.290
   
 
 
(3)
Net income assumed to be 11% of net cash.
 
   Return
   Weighting
   WCI Cost of
Capital/Equity
   Selected Return
on Equity
   Concluded Return
on Cash (a)
  
Equity(b)   11 % 55 %            
Debt(c)   8 % 35 %            
Cash   3 % 10 %            
Average   9.2 %     13.0 % 15.0 % 11.1 %
  (a)    Based on weighted average of 2/3 at 9.2% and 1/3 at 15%.  
  (b)    Average equity returns based on 40 year data for S&P Composite Index, Dow Jones 30 Industrials and Dow Jones 15 Utilities.  
  (c)    Average returns on debt based on 40 year data for Moody's (Baa and Aaa) bonds and the S&P Municipal Bond Yield Index.  
(4)
$4 million note with 9% interest rate.

(5)
$450K receivable associated with Touch Control sale, in escrow earning 1%, per management.

(6)
We have assumed an 11% yield.

(7)
Per management, 7% yield on $276K loan receivable.

(8)
Per management.

(9)
Perpetuity calculation using WCI's 13% cost of capital and 3% as growth rate.

5

Cash(1)   $ 23.586
Less: Working Capital Requirements(2)   $ 2.290
   
Net Cash(3)   $ 21.297
Note Receivable Secured by Real Estate(4)   $ 4.590
Accounts Receivable to Parent(5)   $ 0.450
Investments in Limited Partnerships(6)   $ 2.046
Loan Receivable(7)   $ 0.288
   
Total Assets   $ 28.671

Operating Expenses(8)
 
$
11.538
   
Total Assets, less Operating Expenses   $ 17.132

Less: Liabilities
 
 
 
  Contingent Liabilities   $ 2.000
  One Source Earnout payments   $ 1.020
  Accrued Expenses and Other Liabilities   $ 1.149
  Deferred and Current Income Taxes   $ 1.610
   
Total Liabilities   $ 5.779

Indicated Value of Investment Services
 
$
11.353
   
(1)
Excludes cash at the individual business levels, which are accounted for in their individual valuations.

(2)
Additional working capital requirements for Matrix based on comparable company analysis:

Working Capital Analysis

 
   One Source
   Matrix
   Total
Actual working capital   $ 1.397   ($ 0.921 )    
Estimated required working capital based on comparable companies' median % of revenue         $ 1.369      
   
 
 
Additional cash necessary from Westminster     NMF   $ 2.290   $ 2.290
   
 
 
(4)
Includes a $4 million note and $850K in cash, less a $260K commission.

(5)
$450K receivable in escrow associated with Touch Control sale, per management.

(6)
Hedge funds as recorded on balance sheet.

(7)
Per management, bridge loan to small technology company.

(8)
Operating expenses of $1.5 million, per management, valued into perpetuity using a capitalization rate of 13%.

6

One Source Industries, LLC Valuation Summary

7


One Source Industries, LLC

Market Multiple Methodology

Valuation Summary

 
   Low
    
   High
 
   (figures in millions, except per share values)
Enterprise Equity Value Indication from Operations                
  Market Approach                
  Market Multiple Methodology(1)   $ 8.600   —   $ 11.100
  Comparable Transaction Methodology     NMF   —     NMF
  Income Approach                
  Discounted Cash Flow Methodology—Gordon Growth Approach   $ 8.700       $ 9.700
   
 
 
  Enterprise Equity Value Range on a Minority Interest Basis (rounded)   $ 8.700   —   $ 10.400
   
 
 
  Concluded Equity Value (rounded)             $ 9.600
   
 
 

8

Market Multiple Methodology

9

Market Multiple Methodology

 
   Representative
Level
   Selected
Multiple Range
   Indicated
Enterprise Value Range
 
   (figures in millions)
LTM
              
Revenues   $ 15.862   0.45 x - 0.55 x   $7.140 - $8.720
EBITDA   $ 1.570   4.5 x - 5.5 x   $7.060 - $8.630
EBIT   $ 1.100   6.5 x - 7.5 x   $7.150 - $8.250

NFY (2002)
 
 
 
 
 
 
 
Revenues   $ 25.000   0.30 x - 0.40 x   $7.500 - $10.000
EBITDA   $ 2.860   3.0 x - 4.0 x   $8.580 - $11.440
EBIT   $ 2.584   4.0 x - 5.0 x   $10.340 - $12.920
Median             $7.325 - $9.360
Mean             $7.962 - $9.993

Selected Enterprise Value Range, on a Minority Interest Basis (round)
 
 
 
 
 
 
$7.500 - $10.000
 
Less: Total Interest-Bearing Debt
 
 
 
 
 
 
0.657 - 0.657
  Add: Cash             1.736 - 1.736
             

Aggregate Value of Minority Interest, as if Marketable
 
 
 
 
 
 
$8.600 - $11.100
             

10

Representative Levels

 
   Fiscal Year Ended December 31,
    
    
    
  
 
   LTM Ended
1/31/02
   NFY(2)
12/31/02
   Original 2002
Projection
  
 
   1999
   2000
   2001
  
 
   (figures in millions)

  
Reported Revenue   $ 11.801   $ 14.029   $ 15.763   $ 15.862   $ 25.000   $ 20.300  
   
 
 
 
 
 
 
  Less: Cost of Goods Sold     7.629     9.101     10.221     10.273     NA     13.136  
   
 
 
 
 
 
 
Gross Profit   $ 4.172   $ 4.927   $ 5.542   $ 5.589     NA   $ 7.164  
  Less: Selling, General & Administrative     2.777     3.810     4.208     4.564     NA     5.018  
  Less: Other Operating Expenses     0.000     0.000     0.000     0.000     0.000     0.000  
  Add: Depreciation and Amortization     0.291     0.424     0.486     0.469     0.276     0.448  
  Add: Adjustments(1)     0.000     0.000     0.025     0.075     0.060     0.000  
   
 
 
 
 
 
 
Adjusted EBITDA   $ 1.686   $ 1.542   $ 1.845   $ 1.570   $ 2.860   $ 2.594  
   
 
 
 
 
 
 
    % Margin     14.3 %   11.0 %   11.7 %   9.9 %   11.4 %   12.8 %
  Less: Depreciation and Amortization     0.291     0.424     0.486     0.469     0.276     0.448  
   
 
 
 
 
 
 
Adjusted EBIT   $ 1.396   $ 1.118   $ 1.359   $ 1.100   $ 2.584   $ 2.146  
   
 
 
 
 
 
 
  Less: Interest Expense     0.012     0.035     0.028     0.027     0.052     0.058  
   
 
 
 
 
 
 
Adjusted Pre-tax Income   $ 1.384   $ 1.083   $ 1.331   $ 1.073   $ 2.532   $ 2.089  
  Less: Taxes @ 40.0%     0.554     0.433     0.532     0.429     1.013     0.835  
   
 
 
 
 
 
 
Adjusted Net Income   $ 0.830   $ 0.650   $ 0.799   $ 0.644   $ 1.519   $ 1.253  
   
 
 
 
 
 
 
  Add: Depreciation and Amortization     0.291     0.424     0.486     0.469     0.276     0.448  
   
 
 
 
 
 
 
Adjusted Cash Flow   $ 1.121   $ 1.074   $ 1.285   $ 1.113   $ 1.795   $ 1.701  
   
 
 
 
 
 
 
Net Book Value (tangible)   $ 1.658   $ 1.936   $ 2.649   $ 2.119     NA     NA  
   
 
 
 
 
 
 
Total Assets(3)   $ 7.253   $ 8.073   $ 8.466   $ 8.348     NA     NA  
   
 
 
 
 
 
 

Footnotes:

(1)
Adjustments:

Operating One-Time Charge (patent acquisition)   $ 0.000   $ 0.000   $ 0.000   $ 0.050   $ 0.000   $ 0.000
Operating One-Time Charge (Transaction costs—PDF)     0.000     0.000     0.025     0.025     0.000     0.000
Operating One-Time Charge (Start up costs—PDF)     0.000     0.000     0.000     0.000     0.060     0.000
   
 
 
 
 
 
  Total Adjustments   $ 0.000   $ 0.000   $ 0.025   $ 0.075   $ 0.060   $ 0.000
   
 
 
 
 
 
(2)
Revised projections, per management.

(3)
Net of Cash & Cash Equivalents.

11

Comparable Public Company Debt-Free Multiples

 
    
   EV / EBITDA
 
   EV
   FYE
   LTM
   NFY
   NFY + 1
 
   (figures in millions)
DISC GRAPHICS INC(1)   $ 23.395   6.6x   6.6x   NA   NA
GIBRALTAR PACKAGING GROUP(2)   $ 27.945   3.8x   4.2x   NA   NA
IVEX PACKAGING CORP(3)   $ 832.527   7.8x   8.3x   7.6x   7.3x
OUTLOOK GROUP CORP(4)   $ 13.681   2.3x   4.0x   NA   NA
PACTIV CORP(5)   $ 4,407.744   7.7x   7.6x   7.5x   7.0x
SMURFIT-STONE CONTAINER CORP(6)   $ 9,097.353   8.2x   8.2x   10.1x   6.2x

Low
 
 
 
 
2.3x
 
4.0x
 
7.5x
 
6.2x
High         8.2x   8.3x   10.1x   7.3x
Median         7.2x   7.1x   7.6x   7.0x
Mean         6.1x   6.5x   8.4x   6.8x
 
    
   EV / EBIT
 
   EV
   FYE
   LTM
   NFY
   NFY + 1
 
   (figures in millions)
DISC GRAPHICS INC(1)   $ 23.395   29.0x   29.0x   NA   NA
GIBRALTAR PACKAGING GROUP(2)   $ 27.945   5.4x   6.3x   NA   NA
IVEX PACKAGING CORP(3)   $ 832.527   12.8x   13.5x   11.7x   10.7x
OUTLOOK GROUP CORP(4)   $ 13.681   6.5x   NMF   NA   NA
PACTIV CORP(5)   $ 4,407.744   11.4x   11.1x   10.6x   9.8x
SMURFIT-STONE CONTAINER CORP(6)   $ 9,097.353   14.6x   14.6x   17.2x   8.4x

Low
 
 
 
 
5.4x
 
6.3x
 
10.6x
 
8.4x
High         29.0x   29.0x   17.2x   10.7x
Median         12.1x   13.5x   11.7x   9.8x
Mean         13.3x   14.9x   13.2x   9.6x
 
    
   EV / Revenue
 
   EV
   FYE
   LTM
   NFY
   NFY + 1
 
   (figures in millions)
DISC GRAPHICS INC(1)   $ 23.395   0.44x   0.44x   NA   NA
GIBRALTAR PACKAGING GROUP(2)     27.945   0.44x   0.45x   NA   NA
IVEX PACKAGING CORP(3)     832.527   1.17x   1.27x   1.30x   1.24x
OUTLOOK GROUP CORP(4)     13.681   0.19x   0.21x   NA   NA
PACTIV CORP(5)     4,407.744   1.41x   1.49x   1.51x   1.46x
SMURFIT-STONE CONTAINER CORP(6)     9,097.353   1.09x   1.09x   1.11x   1.01x

Low
 
 
 
 
0.19x
 
0.21x
 
1.11x
 
1.01x
High         1.41x   1.49x   1.51x   1.46x
Median         0.77x   0.77x   1.30x   1.24x
Mean         0.79x   0.83x   1.31x   1.24x

12

 
    
   EV / Total Assets (net of cash)
 
   EV
   FYE
   LTM
   NFY
   NFY + 1
 
   (figures in millions)
DISC GRAPHICS INC(1)   $ 23.395   0.75x   0.75x   NA   NA
GIBRALTAR PACKAGING GROUP(2)   $ 27.945   0.77x   0.81x   NA   NA
IVEX PACKAGING CORP(3)   $ 832.527   1.42x   1.46x   NMF   NMF
OUTLOOK GROUP CORP(4)   $ 13.681   0.32x   0.35x   NA   NA
PACTIV CORP(5)   $ 4,407.744   1.02x   1.09x   NMF   NMF
SMURFIT-STONE CONTAINER CORP(6)   $ 9,097.353   0.86x   0.86x   0.84x   0.84x

Low
 
 
 
 
0.32x
 
0.35x
 
0.84x
 
0.84x
High         1.42x   1.46x   0.84x   0.84x
Median         0.81x   0.83x   0.84x   0.84x
Mean         0.86x   0.89x   0.84x   0.84x

Footnotes:

(1)
No projections available.

(2)
No projections available.

(3)
Projected financial figures are based on a Deutsche Banc Alex Brown report dated January 29, 2002.

(4)
No projections available.

(5)
Projected financial figures are based on a SalomonSmithBarney report dated November 9, 2001.

(6)
Projected financial figures are based on a SalomonSmithBarney report dated March 7, 2002.

13

Risk Analysis Rankings

Size
(Revenue, millions)
SMURFIT-STONE CONTAINER CORP   $ 8,377.0
PACTIV CORP   $ 2,956.0
IVEX PACKAGING CORP   $ 658.0
OUTLOOK GROUP CORP   $ 64.1
GIBRALTAR PACKAGING GROUP   $ 62.0
DISC GRAPHICS INC   $ 52.7
One Source Industries, LLC   $ 15.9
Historical Growth
(2-Year EBITDA)
  
GIBRALTAR PACKAGING GROUP   28.3 %
SMURFIT-STONE CONTAINER CORP   12.6 %
PACTIV CORP   7.5 %
One Source Industries, LLC   4.6 %
IVEX PACKAGING CORP   (2.1 )%
OUTLOOK GROUP CORP   (2.9 )%
DISC GRAPHICS INC   (30.9 )%
Profitability
(EBITDA to Revenue)
  
PACTIV CORP   19.6 %
IVEX PACKAGING CORP   15.3 %
SMURFIT-STONE CONTAINER CORP   13.3 %
GIBRALTAR PACKAGING GROUP   10.7 %
One Source Industries, LLC   9.9 %
DISC GRAPHICS INC   6.7 %
OUTLOOK GROUP CORP   5.3 %
Size
(Enterprise Value, millions)
SMURFIT-STONE CONTAINER CORP   $ 9,097.4
PACTIV CORP   $ 4,407.7
IVEX PACKAGING CORP   $ 832.5
GIBRALTAR PACKAGING GROUP   $ 27.9
DISC GRAPHICS INC   $ 23.4
OUTLOOK GROUP CORP   $ 13.7
Historical Growth
(1-Year EBITDA)
  
DISC GRAPHICS INC   140.4 %
One Source Industries, LLC   19.7 %
PACTIV CORP   14.5 %
GIBRALTAR PACKAGING GROUP   5.5 %
IVEX PACKAGING CORP   (2.7 )%
OUTLOOK GROUP CORP   (19.6 )%
SMURFIT-STONE CONTAINER CORP   (22.1 )%

14

Relative Depreciation
(Depreciation to EBITDA)
  
OUTLOOK GROUP CORP   105.8 %
DISC GRAPHICS INC   77.2 %
SMURFIT-STONE CONTAINER CORP   44.0 %
IVEX PACKAGING CORP   38.6 %
GIBRALTAR PACKAGING GROUP   33.3 %
PACTIV CORP   31.3 %
One Source Industries, LLC   29.9 %
Historical Growth
(2-Year Revenue)
  
One Source Industries, LLC   15.6 %
SMURFIT-STONE CONTAINER CORP   6.2 %
IVEX PACKAGING CORP   5.8 %
PACTIV CORP   2.9 %
OUTLOOK GROUP CORP   1.6 %
GIBRALTAR PACKAGING GROUP   (8.5 )%
DISC GRAPHICS INC   (12.0 )%
Projected Growth(1)
(1-Year EBITDA)
  
DISC GRAPHICS INC   NA  
GIBRALTAR PACKAGING GROUP   NA  
OUTLOOK GROUP CORP   NA  
One Source Industries, LLC   55.0 %
SMURFIT-STONE CONTAINER CORP   62.3 %
PACTIV CORP   6.3 %
IVEX PACKAGING CORP   4.9 %
Internal Investment
(Capital Expenditures to Revenue)
  
One Source Industries, LLC   NA  
OUTLOOK GROUP CORP   4.5 %
PACTIV CORP   4.4 %
IVEX PACKAGING CORP   4.1 %
SMURFIT-STONE CONTAINER CORP   2.3 %
GIBRALTAR PACKAGING GROUP   1.4 %
DISC GRAPHICS INC   0.8 %
Historical Growth
(1-Year Revenue)
  
One Source Industries, LLC   12.4 %
IVEX PACKAGING CORP   5.2 %
PACTIV CORP   0.7 %
OUTLOOK GROUP CORP   (2.9 )%
SMURFIT-STONE CONTAINER CORP   (4.8 )%
GIBRALTAR PACKAGING GROUP   (5.1 )%
DISC GRAPHICS INC   (19.4 )%

15

Projected Growth
(5-Year EPS)
  
DISC GRAPHICS INC   NA  
GIBRALTAR PACKAGING GROUP   NA  
OUTLOOK GROUP CORP   NA  
One Source Industries, LLC   NA  
IVEX PACKAGING CORP   32.5 %
SMURFIT-STONE CONTAINER CORP   (5.0 )%
PACTIV CORP   (26.6 )%
Liquidity
(Current Ratio)
OUTLOOK GROUP CORP   3.0
DISC GRAPHICS INC   2.3
IVEX PACKAGING CORP   1.8
One Source Industries, LLC   1.7
PACTIV CORP   1.4
GIBRALTAR PACKAGING GROUP   1.4
SMURFIT-STONE CONTAINER CORP   1.2
Projected Growth(1)
(1-Year Revenue)
  
DISC GRAPHICS INC   NA  
GIBRALTAR PACKAGING GROUP   NA  
OUTLOOK GROUP CORP   NA  
One Source Industries, LLC   58.6 %
IVEX PACKAGING CORP   5.2 %
SMURFIT-STONE CONTAINER CORP   10.2 %
PACTIV CORP   3.5 %
Profitability
(EBIT to Revenue)
  
PACTIV CORP   13.5 %
IVEX PACKAGING CORP   9.4 %
SMURFIT-STONE CONTAINER CORP   7.4 %
GIBRALTAR PACKAGING GROUP   7.2 %
One Source Industries, LLC   6.9 %
DISC GRAPHICS INC   1.5 %
OUTLOOK GROUP CORP   (0.3 )%
Leverage
(Debt to EV)
  
GIBRALTAR PACKAGING GROUP   74.7 %
DISC GRAPHICS INC   65.1 %
SMURFIT-STONE CONTAINER CORP   54.6 %
IVEX PACKAGING CORP   43.4 %
PACTIV CORP   28.0 %
OUTLOOK GROUP CORP   0.0 %

(1) Growth from 2001 to 2002.

16

Discounted Cash Flow Methodology

17

Discounted Cash Flow Methodology

Discounted Cash Flow Valuation—Gordon Growth Approach

 
   Projected Fiscal Year(1) Ending December 31,
  
 
   2002
  
 
   (figures in millions)

  
EBIT   $ 2.883  
  Less: Taxes     1.153  
   
 
Debt-Free Earnings   $ 1.730  
  Less: Capital Expenditures(3)     (0.300 )
  Less: Working Capital Requirements(4)     (0.549 )
  Add: Depreciation and Amortization     0.300  
   
 
    Total Net Investment   $ (0.549 )
   
 
Net Debt-Free Cash Flows:   $ 1.181  
  Discount Period     0.46  
  Discount Factor @ 19.0%     0.92  
   
 
Present Value of Net Debt-Free Cash Flows:   $ 1.090  
(1)
Projections provided by management. 2002 represents the 11 month ending December 31, 2002.

(2)
Terminal year assumes depreciation and amortization equal capital expenditures.

(3)
Management expects to spend $450K on new equipment to increase capacity for new products such as Theft Buster. $150K has already been capitalized and we have assumed the remaining $300K will effect 2002. December 2001 includes $45K for a new vehicle.

(4)
Per management projections.

Sensitivity Analysis: Enterprise Value

 
   Gordon Growth Rate
Discount Rate
  2.0%
   2.5%
   3.0%
   3.5%
   4.0%
  18.0%   $ 8.073   $ 8.334   $ 8.612   $ 8.908   $ 9.227
  18.5%   $ 7.847   $ 8.092   $ 8.353   $ 8.631   $ 8.929
  19.0%   $ 7.633   $ 7.865   $ 8.110   $ 8.372   $ 8.651
  19.5%   $ 7.432   $ 7.651   $ 7.882   $ 8.129   $ 8.391
  20.0%   $ 7.242   $ 7.449   $ 7.668   $ 7.900   $ 8.147

Range of Selected Enterprise Values
 
 
 
 
$
7.651
 
 
—
 
$
8.631
 
 
 
Less: Total Interest-Bearing Debt         $ 0.657         $ 0.657      
Add: Cash         $ 1.736         $ 1.736      
         
       
     
Value of Total Equity (round)         $ 8.700         $ 9.700      

DCF Assumptions

Discount Rate   19.0 %
Tax Rate   40.0 %

18

Gordon Growth Assumptions

Terminal Cash Flow (3.0% Growth Rate)   $ 1.216  
Gordon Growth Rate     3.0 %
  Terminal Value   $ 7.602  
    Discount Period     0.46  
    Discount Factor @ 19.0%     0.92  
   
 
  PV of Terminal Value   $ 7.020  

Distribution of Value

Period Cash Flow   13.4 %
Terminal Cash Flow   86.6 %
   
 
Total   100.0 %

19

Matrix Visual Solutions Valuation Summary

20


Matrix Visual Solutions

Matrix Visual Solutions

Valuation Summary

Enterprise Equity Value Indication from Operations

 
   Low
    
   High
 
   (figures in millions, except per share values)
Market Approach                
Market Multiple Methodology   $ 0.900   —   $ 1.600
Comparable Transaction Methodology     NMF   —     NMF
Income Approach                
Discounted Cash Flow Methodology     NMF   —     NMF
Equity Value Range on a Minority Interest Basis (rounded)   $ 0.900   —   $ 1.600
Concluded Equity Value             $ 1.250

21

Market Multiple Methodology

22

Market Multiple Methodology

Market Multiple Methodology

 
   Representative
Level
   Selected
Multiple
Range
   Indicated
Enterprise Value Range
 
   (figures in millions)
LTM
                
Revenues   $ 7.218   0.40 x - 0.50 x   $ 2.890 - $3.610
NFY (2002)
                
Revenues   $ 7.000   0.40 x - 0.50 x   $ 2.800 - $3.500
Mean             $ 2.845 - $3.555
Selected Enterprise Value Range, on a Minority Interest Basis             $ 2.845 - $3.555
             
  Less: Total Interest-Bearing Debt             $ 2.040 - 2.040
  Add: Cash             $ 0.113 - 0.113
Aggregate Value of Minority Interest, as if Marketable             $ 0.900 - $1.600
             

23

Representative Levels

 
    
    
   FYE
    
    
    
  
 
    
    
   LTM Ended
1/31/02
   NFY Ended
12/31/2002(4)
   Original 2002
Projection(4)
  
 
   1999(1)
   2000
   2001
  
 
   (figures in millions)

  
Reported Revenue   $ 6.360   $ 10.055   $ 7.597   $ 7.218   $ 7.000   $ 8.112  
   
 
 
 
 
 
 
  Less: Cost of Goods Sold     2.945     5.791     5.164     4.858     NA     4.763  
   
 
 
 
 
 
 
Gross Profit   $ 3.416   $ 4.264   $ 2.433   $ 2.360     NA   $ 3.349  
  Less: Selling, General & Administrative     1.530     2.159     3.790     3.795     NA     3.517  
  Less: Other Operating Expenses     0.000     1.760     0.000     0.000     0.000     0.000  
  Add: Depreciation and Amortization     0.415     0.961     1.266     1.613     1.405     1.559  
  Add: Adjustments(2)     0.000     0.000     0.000     0.000     0.000     0.000  
   
 
 
 
 
 
 
Adjusted EBITDA   $ 2.301   $ 1.306   ($ 0.090 ) $ 0.179   $ 0.100   $ 1.392  
   
 
 
 
 
 
 
  Less: Depreciation and Amortization     0.415     0.961     1.266     1.613     1.405     1.559  
   
 
 
 
 
 
 
Adjusted EBIT   $ 1.886   $ 0.345   ($ 1.357 ) ($ 1.435 ) ($ 1.305 ) ($ 0.168 )
   
 
 
 
 
 
 
  Less: Interest Expense     0.018     0.196     0.219     0.203     0.112     0.118  
   
 
 
 
 
 
 
Adjusted Pre-tax Income   $ 1.867   $ 0.150   ($ 1.576 ) ($ 1.637 ) ($ 1.417 ) ($ 0.286 )
  Less: Taxes @ 40.0%     0.747     0.060     (0.630 )   (0.655 )   (0.567 )   (0.114 )
   
 
 
 
 
 
 
Adjusted Net Income   $ 1.120   $ 0.090   ($ 0.945 ) ($ 0.982 ) ($ 0.850 ) ($ 0.171 )
   
 
 
 
 
 
 
  Add: Depreciation and Amortization     0.415     0.961     1.266     1.613     1.405     1.559  
   
 
 
 
 
 
 
Adjusted Cash Flow   $ 1.536   $ 1.051   $ 0.321   $ 0.631   $ 0.555   $ 1.388  
   
 
 
 
 
 
 
Net Book Value (tangible)   $ 2.286   $ 2.389   $ 1.643   $ 1.547   $ 1.604   $ 1.372  
   
 
 
 
 
 
 
Total Assets(3)   $ 4.137   $ 7.207   $ 4.448   $ 4.351   $ 4.719   $ 3.639  
   
 
 
 
 
 
 

Footnotes:

(1)
Fiscal year ended September 30, 1999.

(2)
Adjustments:

Operating One-Time Charges/(Gains)   $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000
Non-Operating Recurring Expenses/(Income)     0.000     0.000     0.000     0.000     0.000     0.000
Other Adjustments     0.000     0.000     0.000     0.000     0.000     0.000
   
 
 
 
 
 
  Total Adjustments   $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000
   
 
 
 
 
 
(3)
Net of Cash & Cash Equivalents.

(4)
Includes Las Vegas office. Revised projections, per management.

24

Comparable Public Company Debt-Free Multiples

 
    
   EV / EBITDA
 
   EV
   FYE
   LTM
   NFY
 
   (figures in millions)
AUDIO VISUAL SERVICES CORP(1)   $ 363.678   9.6x   9.6x   NA
CLARK (DICK) PROD INC(2)   $ 64.063   1.4x   1.4x   NA
MCSI INC(3)   $ 365.348   7.0x   6.0x   5.1x
VARI-LITE INTERNATIONAL INC(4)   $ 33.599   3.3x   4.1x   NA

Low
 
 
 
 
1.4x
 
1.4x
 
5.1x
High         9.6x   9.6x   5.1x
Median         5.2x   5.0x   5.1x
Mean         5.4x   5.3x   5.1x
 
    
   EV / Revenue
 
   EV
   FYE
   LTM
   NFY
 
   (figures in millions)
AUDIO VISUAL SERVICES CORP(1)   $ 363.678   0.92x   0.92x   NA
CLARK (DICK) PROD INC(2)     64.063   0.91x   1.04x   NA
MCSI INC(3)     365.348   0.41x   0.39x   0.34x
VARI-LITE INTERNATIONAL INC(4)     33.599   0.46x   0.48x   NA

Low
 
 
 
 
0.41x
 
0.39x
 
0.34x
High         0.92x   1.04x   0.34x
Median         0.68x   0.70x   0.34x
Mean         0.67x   0.71x   0.34x
 
    
   EV / EBIT
 
   EV
   FYE
   LTM
   NFY
 
   (figures in millions)
AUDIO VISUAL SERVICES CORP(1)   $ 363.678   NMF   NMF   NA
CLARK (DICK) PROD INC(2)   $ 64.063   14.4x   13.8x   NA
MCSI INC(3)   $ 365.348   8.8x   7.6x   5.8x
VARI-LITE INTERNATIONAL INC(4)   $ 33.599   NMF   NMF   NA

Low
 
 
 
 
8.8x
 
7.6x
 
5.8x
High         14.4x   13.8x   5.8x
Median         11.6x   10.7x   5.8x
Mean         11.6x   10.7x   5.8x

25

 
    
   EV / Total Assets (net of cash)
 
   EV
   FYE
   LTM
   NFY
 
   (figures in millions)
AUDIO VISUAL SERVICES CORP(1)   $ 363.678   0.96x   0.96x   NA
CLARK (DICK) PROD INC(2)   $ 64.063   3.01x   3.01x   NA
MCSI INC(3)   $ 365.348   0.78x   0.76x   NMF
VARI-LITE INTERNATIONAL INC(4)   $ 33.599   0.44x   0.45x   NA

Low
 
 
 
 
0.44x
 
0.45x
 
NA
High         3.01x   3.01x   NA
Median         0.87x   0.86x   NA
Mean         1.30x   1.30x   NA

Footnotes:

(1)
No projections available.

(2)
No projections available.

(3)
Projected financial figures are based on a FBR report dated October 26, 2001.

(4)
No projections available.

26

Risk Analysis Rankings

Size
(Revenue, millions)
MCSI INC   $ 936.8
AUDIO VISUAL SERVICES CORP   $ 396.2
VARI-LITE INTERNATIONAL INC   $ 69.5
CLARK (DICK) PROD INC   $ 61.4
Matrix Visual Solutions   $ 7.2
Historical Growth
(2-Year EBITDA)
  
Matrix Visual Solutions   NA  
MCSI INC   79.3 %
CLARK (DICK) PROD INC   -1.2 %
AUDIO VISUAL SERVICES CORP   -14.5 %
VARI-LITE INTERNATIONAL INC   -21.0 %
Profitability
(EBITDA to Revenue)
  
CLARK (DICK) PROD INC   74.4 %
VARI-LITE INTERNATIONAL INC   11.8 %
AUDIO VISUAL SERVICES CORP   9.5 %
MCSI INC   6.5 %
Matrix Visual Solutions   2.5 %
Size
(Enterprise Value, millions)
MCSI INC   $ 365.3
AUDIO VISUAL SERVICES CORP   $ 363.7
CLARK (DICK) PROD INC   $ 64.1
VARI-LITE INTERNATIONAL INC   $ 33.6
Historical Growth
(1-Year EBITDA)
  
MCSI INC   52.0 %
CLARK (DICK) PROD INC   -26.6 %
AUDIO VISUAL SERVICES CORP   -33.1 %
VARI-LITE INTERNATIONAL INC   -46.6 %
Matrix Visual Solutions   -106.9 %
Relative Depreciation
(Depreciation to EBITDA)
  
Matrix Visual Solutions   902.7 %
VARI-LITE INTERNATIONAL INC   128.2 %
AUDIO VISUAL SERVICES CORP   112.9 %
CLARK (DICK) PROD INC   89.8 %
MCSI INC   21.5 %

27

Historical Growth
(2-Year Revenue)
  
Matrix Visual Solutions   NA  
MCSI INC   69.0 %
AUDIO VISUAL SERVICES CORP   1.2 %
CLARK (DICK) PROD INC   -1.1 %
VARI-LITE INTERNATIONAL INC   -10.7 %
Projected Growth(1)
(1-Year EBITDA)
  
AUDIO VISUAL SERVICES CORP   NA  
CLARK (DICK) PROD INC   NA  
VARI-LITE INTERNATIONAL INC   NA  
Matrix Visual Solutions   NA  
MCSI INC   17.2 %
Internal Investment(1)
(Capital Expenditures to Revenue)
  
VARI-LITE INTERNATIONAL INC   10.5 %
AUDIO VISUAL SERVICES CORP   9.3 %
MCSI INC   1.3 %
CLARK (DICK) PROD INC   0.4 %
Matrix Visual Solutions   0.0 %
Historical Growth
(1-Year Revenue)
  
MCSI INC   30.4 %
AUDIO VISUAL SERVICES CORP   -5.8 %
VARI-LITE INTERNATIONAL INC   -22.0 %
CLARK (DICK) PROD INC   -23.3 %
Matrix Visual Solutions   -24.4 %
Projected Growth
(5-Year EPS)
  
AUDIO VISUAL SERVICES CORP   NA  
CLARK (DICK) PROD INC   NA  
VARI-LITE INTERNATIONAL INC   NA  
Matrix Visual Solutions   NA  
MCSI INC   46.9 %
Liquidity
(Current Risks)
CLARK (DICK) PROD INC   10.4
MCSI INC   2.7
VARI-LITE INTERNATIONAL INC   2.1
Matrix Visual Solutions   0.5
AUDIO VISUAL SERVICES CORP   0.1

28

Projected Growth(1)
(1-Year Revenue)
  
AUDIO VISUAL SERVICES CORP   NA  
CLARK (DICK) PROD INC   NA  
VARI-LITE INTERNATIONAL INC   NA  
Matrix Visual Solutions   -7.9 %
MCSI INC   13.5 %
Profitability
(EBIT to Revenue)
  
CLARK (DICK) PROD INC   7.6 %
MCSI INC   5.1 %
AUDIO VISUAL SERVICES CORP   -1.2 %
VARI-LITE INTERNATIONAL INC   -3.3 %
Matrix Visual Solutions   -19.9 %
Leverage
(Debt to EV)
  
AUDIO VISUAL SERVICES CORP   104.2 %
VARI-LITE INTERNATIONAL INC   67.6 %
MCSI INC   46.9 %
CLARK (DICK) PROD INC   0.0 %
(1)
Growth from 2001 to 2002.

29

Westland Valuation Summary

30


Westland

Westland Valuation Summary

Valuation Summary

        Enterprise Equity Value Indication from Operations

 
   Low
    
   High
 
   (figures in millions, except per share values)
>Market Approach
                
Market Multiple Methodology   $ 0.000   -   $ 0.000

Income Approach
 
 
 
 
 
 
 
 
Discounted Cash Flow Methodology — Gordon Growth Approach   $ 0.000   -   $ 0.000

Concluded Equity Value on a Minority Interest Basis (rounded)
 
$
0.000
 
-
 
$
0.000
   
 
 

Liquidation Approach
 
$
0.000
 
 
 
$
0.000

31

Market Multiple Methodology

32

Market Multiple Methodology

LTM
   Representative
Level
   Selected
Multiple Range
   Indicated
Enterprise Value Range
 
   (figures in millions)
Net Revenues   $ 0.917   0.4 x - 0.5 x   $0.370 - $0.460
EBITDA   $ (0.037 ) 3.0 x - 4.0 x   $(0.110) - $(0.150)
EBIT   $ (0.075 ) 5.5 x - 6.5 x   $(0.410) - $(0.490)
Median             $(0.110) - $(0.150)
Mean             $(0.050) - $(0.060)
Selected Enterprise Value Range, on a Minority Interest Basis             $(0.050) - $(0.060)
             
Less: Total Interest-Bearing Debt             0.788 - 0.788
Add: Cash             0.057 - 0.057
   
 
 
Aggregate Value of Minority Interest, as if Marketable             $(0.781) - $(0.791)
   
 
 

33

Representative Levels

 
    
   Fiscal Year Ended December 31,
    
    
  
 
   3-Year
Average
   LTM Ended
1/31/01
   NFY
2002
  
 
   1999
   2000
   2001
  
 
   (figures in millions)

  
Reported Gross Revenue   $ 14.486   $ 14.235   $ 15.987   $ 13.236   $ 12.565   $ 16.371  
  Less: Cost of Sales           13.327     14.976     12.293     11.647     15.035  
   
 
Net Revenues         $ 0.907   $ 1.010   $ 0.943   $ 0.917   $ 1.336  
   
 
  Less: Selling, General & Administrative           1.351     1.074     0.988     0.992     1.384  
  Less: Other Operating Expenses           0.000     0.000     0.000     0.000     0.050  
  Add: Depreciation and Amortization           0.046     0.048     0.039     0.038     0.050  
  Add: Adjustments (1)           0.000     0.000     0.000     0.000     0.000  
         
 
Adjusted EBITDA   $ (0.140 ) $ (0.397 ) $ (0.016 ) $ (0.006 ) $ (0.037 ) $ (0.048 )
   
 
  Less: Depreciation and Amortization           0.046     0.048     0.039     0.038     0.050  
         
 
Adjusted EBIT   $ (0.184 ) $ (0.443 ) $ (0.064 ) $ (0.045 ) $ (0.075 ) $ (0.098 )
   
 
  Less: Interest Expense           0.027     0.015     0.012     0.012     0.016  
         
 
Adjusted Pre-tax Income         $ (0.470 ) $ (0.079 ) $ (0.057 ) $ (0.087 ) $ (0.114 )
  Less: Taxes @ 40.0%           (0.188 )   (0.032 )   (0.023 )   (0.035 )   (0.046 )
         
 
Adjusted Net Income   $ (0.121 ) $ (0.282 ) $ (0.047 ) $ (0.034 ) $ (0.052 ) $ (0.068 )
   
 
  Add: Depreciation and Amortization           0.046     0.048     0.039     0.038     0.050  
         
 
Adjusted Cash Flow   $ (0.077 ) $ (0.236 ) $ 0.001   $ 0.005   $ (0.014 ) $ (0.018 )
   
 
Net Book Value (tangible)   $ (0.585 ) $ (0.527 ) $ (0.594 ) $ (0.635 ) $ (0.666 )   NA  
   
 
Total Assets(2)   $ 0.629   $ 0.719   $ 0.654   $ 0.515   $ 0.536     NA  
   
 

Footnotes:

(1)
Adjustments:

Operating One-Time Charges/(Gains)       $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000
Non-Operating Recurring Expenses/(Income)         0.000     0.000     0.000     0.000     0.000
Other Adjustments         0.000     0.000     0.000     0.000     0.000
       
  Total Adjustments       $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000
   
 
 
 
 
 
(2)
Net of Cash & Cash Equivalents.

34

Comparable Public Company Debt-Free Multiples

 
   EV / EBITDA
 
   EV
   3-YR Avg.
   FYE
   LTM
   NFY
 
   (figures in millions)
EN POINTE TECHNOLOGIES INC(1)   $ 20.343   NMF   NMF   NMF   2.1x
ONVIA.COM INC(2)   $ (52.974 ) 1.1x*   0.5x*   1.1x*   1.2x*
REYNOLDS & REYNOLDS -CL A(3)   $ 2,507.104   12.3x   11.3x   11.4x   NA
DRIVERSSHIELD.COM CORP(4)   $ 15.624   NMF   NMF   NMF   NA
Low         12.3x   11.3x   11.4x   2.1x
High         12.3x   11.3x   11.4x   2.1x
Median         12.3x   11.3x   11.4x   2.1x
Mean         12.3x   11.3x   11.4x   2.1x
 
   EV / EBIT
 
   EV
   3-YR Avg.
   FYE
   LTM
   NFY
 
   (figures in millions)
EN POINTE TECHNOLOGIES INC(1)   $ 20.343   NMF   NMF   NMF   2.5x
ONVIA.COM INC(2)   $ (52.974 ) 1.0x*   0.4x*   0.8x*   0.8x*
REYNOLDS & REYNOLDS -CL A(3)   $ 2,507.104   15.3x   14.6x   14.3x   13.8x
DRIVERSSHIELD.COM CORP(4)   $ 15.624   NMF   NMF   NMF   NA
Low         15.3x   14.6x   14.3x   2.5x
High         15.3x   14.6x   14.3x   13.8x
Median         15.3x   14.6x   14.3x   8.2x
Mean         15.3x   14.6x   14.3x   8.2x
 
   EV / Revenue
 
   EV
   3-YR Avg.
   FYE
   LTM
   NFY
 
   (figures in millions)
EN POINTE TECHNOLOGIES INC(1)   $ 20.343   0.04x   0.06x   0.06x   NA
ONVIA.COM INC(2)     (52.974 ) NMF*   NMF*   NMF*   NA*
REYNOLDS & REYNOLDS -CL A(3)     2,507.104   2.72x   2.50x   2.53x   2.50x
DRIVERSSHIELD.COM CORP(4)     15.624   1.14x   1.08x   0.98x   NA
Low         0.04x   0.06x   0.06x   NA
High         2.72x   2.50x   2.53x   NA
Median         1.14x   1.08x   0.98x   NA
Mean         1.30x   1.21x   1.19x   NA
Implied Multiples(4)         0.00x   0.00x   0.00x   0.00x
 
   EV / Total Assets (net of cash)
 
   EV
   3-YR Avg.
   FYE
   LTM
   NFY
 
   (figures in millions)
EN POINTE TECHNOLOGIES INC(1)   $ 20.343   0.22x   0.37x   0.28x   NA
ONVIA.COM INC(2)   $ (52.974 ) NMF*   NMF*   NMF*   NA*
REYNOLDS & REYNOLDS -CL A(3)   $ 2,507.104   2.41x   2.43x   2.46x   NA
DRIVERSSHIELD.COM CORP(4)   $ 15.624   6.00x   5.66x   7.30x   NA
Low         0.22x   0.37x   0.28x   NA
High         6.00x   5.66x   7.30x   NA
Median         2.41x   2.43x   2.46x   NA
Mean         2.88x   2.82x   3.35x   NA
Implied Multiples(4)         -0.09x   -0.11x   -0.10x   NA

35

* Excluded from the range.

Footnotes:

(1)
Projected financial figures are based on the Houlihan Lokey Howard & Zukin build-up method.

(2)
Projected financial figures are based on the Houlihan Lokey Howard & Zukin build-up method.

(3)
Projected financial figures are based on a Robertson Stephens report dated November 2, 2001.

(4)
No projections available.

36

Risk Analysis Rankings

Size
(Revenue, millions)
REYNOLDS & REYNOLDS -CL A   $ 992.4
EN POINTE TECHNOLOGIES INC   $ 321.6
ONVIA.COM INC   $ 68.1
DRIVERSSHIELD.COM CORP   $ 15.9
Westland   $ 0.9
Historical Growth
(2-Year EBITDA)
  
EN POINTE TECHNOLOGIES INC   NMF  
ONVIA.COM INC   NMF  
DRIVERSSHIELD.COM CORP   NMF  
REYNOLDS & REYNOLDS -CL A   9.2 %
Westland   (87.7 )%
Profitability
(EBITDA to Revenue)
  
REYNOLDS & REYNOLDS -CL A   22.1 %
DRIVERSSHIELD.COM CORP   0.8 %
Westland   (0.3 )%
EN POINTE TECHNOLOGIES INC   (0.6 )%
ONVIA.COM INC   (69.9 )%
Size
(Enterprise Value, millions)
  
REYNOLDS & REYNOLDS -CL A   $ 2,507.1  
EN POINTE TECHNOLOGIES INC   $ 20.3  
DRIVERSSHIELD.COM CORP   $ 15.6  
ONVIA.COM INC   $ (53.0 )
Historical Growth
(1-Year EBITDA)
  
EN POINTE TECHNOLOGIES INC   NMF  
ONVIA.COM INC   NMF  
DRIVERSSHIELD.COM CORP   NMF  
REYNOLDS & REYNOLDS -CL A   8.4 %
Westland   (62.3 )%
Relative Depreciation
(Depreciation to EBITDA)
  
DRIVERSSHIELD.COM CORP   288.2 %
REYNOLDS & REYNOLDS -CL A   20.5 %
ONVIA.COM INC   (44.4 )%
EN POINTE TECHNOLOGIES INC   (72.7 )%
Westland   (102.7 )%

37

Historical Growth
(2-Year Revenue)
  
ONVIA.COM INC   1092.9 %
REYNOLDS & REYNOLDS -CL A   9.5 %
Westland   1.9 %
DRIVERSSHIELD.COM CORP   (0.4 )%
EN POINTE TECHNOLOGIES INC   (26.1 )%
Projected Growth(1)
(1-Year EBITDA)
EN POINTE TECHNOLOGIES INC   NMF
ONVIA.COM INC   NMF
Westland   NMF
DRIVERSSHIELD.COM CORP   NA
REYNOLDS & REYNOLDS -CL A   NA
Internal Investment
(Capital Expenditures to Revenue)
  
ONVIA.COM INC   5.5 %
REYNOLDS & REYNOLDS -CL A   4.7 %
DRIVERSSHIELD.COM CORP   1.3 %
EN POINTE TECHNOLOGIES INC   0.4 %
Westland   0.0 %
Historical Growth
(1-Year Revenue)
  
ONVIA.COM INC   443.0 %
DRIVERSSHIELD.COM CORP   19.1 %
REYNOLDS & REYNOLDS -CL A   8.6 %
Westland   (6.7 )%
EN POINTE TECHNOLOGIES INC   (26.1 )%
Projected Growth
(5-Year EPS)
  
ONVIA.COM INC   NA  
DRIVERSSHIELD.COM CORP   NA  
Westland   NA  
REYNOLDS & REYNOLDS -CL A   6.6 %
EN POINTE TECHNOLOGIES INC   (30.2 )%
Liquidity
(Current Ratio)
ONVIA.COM INC   6.0
REYNOLDS & REYNOLDS -CL A   5.6
DRIVERSSHIELD.COM CORP   2.5
EN POINTE TECHNOLOGIES INC   1.4
Westland   1.1
Projected Growth(1)
(1-Year Revenue)
  
EN POINTE TECHNOLOGIES INC   NA  
ONVIA.COM INC   NA  
REYNOLDS & REYNOLDS -CL A   NA  
DRIVERSSHIELD.COM CORP   NA  
Westland   23.7 %

38

Profitability
(EBIT to Revenue)
  
REYNOLDS & REYNOLDS -CL A   17.6 %
Westland   -0.6 %
EN POINTE TECHNOLOGIES INC   -1.1 %
DRIVERSSHIELD.COM CORP   -1.5 %
ONVIA.COM INC   -100.9 %
Leverage
(Debt to EV)
  
EN POINTE TECHNOLOGIES INC   83.2 %
REYNOLDS & REYNOLDS -CL A   12.9 %
DRIVERSSHIELD.COM CORP   0.0 %
ONVIA.COM INC   (8.8 )%
(1)
Growth from 2001 to 2002.

39

Liquidation Analysis

40

Liquidation Analysis

Liquidation/Net Book Value

 
   Reported as of
1/31/02
  
 
   ($ in millions)

  
Total Assets   $ 0.593  
Total Liabilities   $ 1.259  
   
 
Shareholder's Equity   $ (0.666 )

41

Physician Advantage Valuation Summary

42


Physician Advantage

Physician Advantage Valuation Summary

    Valuation Summary

            Enterprise Equity Value Indication from Operations

 
   Low
   —

   High
 
   (figures in millions, except per share values)
Transaction Indication                

Universal Medical Alliance Proposed Acquisition of Physician Advantage
 
$
0.000
 
 
 
$
0.000

Income Approach
 
 
 
 
 
 
 
 

Discounted Cash Flow Methodology
 
$
0.000
 
—
 
$
0.000

Concluded Enterprise Equity Value on a Minority Interest Basis
 
$
0.000
 
—
 
$
0.000

Liquidation Value
 
$
0.000
 
 
 
$
0.000

43

Representative Levels

 
   Fiscal Year Ended December 31,
    
    
 
   LTM Ended
12/31/01
   NFY(2)
2002
 
   1998
   1999
   2000
 
   (figures in millions)
Reported Revenue   $ 0.249   $ 0.374   $ 0.557   $ 0.603   $ 0.562
  Less: Cost of Goods Sold     0.000     0.000     0.000     0.000     0.000
   
 
 
 
 
Gross Profit   $ 0.249   $ 0.374   $ 0.557   $ 0.603   $ 0.562
  Less: Selling, General & Administrative     1.068     1.129     1.421     0.501     0.380
  Less: Other Operating Expenses     0.000     0.000     0.000     0.000     0.047
  Add: Depreciation and Amortization     0.089     0.070     0.049     0.047     0.047
  Add: Adjustments(1)     0.000     0.000     0.000     0.000     0.000
   
 
 
 
 
Adjusted EBITDA   $ (0.729 ) $ (0.685 ) $ (0.815 ) $ 0.149   $ 0.182
  Less: Depreciation and Amortization     0.089     0.070     0.049     0.047     0.047
   
 
 
 
 
Adjusted EBIT   $ (0.819 ) $ (0.756 ) $ (0.864 ) $ 0.101   $ 0.135
  Less: Interest Expense     0.094     0.155     0.273     0.261     0.000
   
 
 
 
 
Adjusted Pre-tax Income   $ (0.913 ) $ (0.911 ) $ (1.137 ) $ (0.159 ) $ 0.135
  Less: Taxes @ 40.0%     (0.365 )   (0.364 )   (0.455 )   (0.064 )   0.054
Adjusted Net Income   $ (0.548 ) $ (0.547 ) $ (0.682 ) $ (0.096 ) $ 0.081
  Add: Depreciation and Amortization     0.089     0.070     0.049     0.047     0.047
   
 
 
 
 
Adjusted Cash Flow   $ (0.458 ) $ (0.476 ) $ (0.633 ) $ (0.048 ) $ 0.128
Net Book Value (tangible)   $ (1.023 ) $ (1.782 ) $ (2.919 ) $ (3.070 )   NA
Total Assets(2)   $ 0.651   $ 0.298   $ 0.315   $ 0.321     NA

Footnotes:

(1)
Adjustments:

Operating One-Time Charges/(Gains)   $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000
Non-Operating Recurring Expenses/(Income)     0.000     0.000     0.000     0.000     0.000
Other Adjustments     0.000     0.000     0.000     0.000     0.000
   
 
 
 
 
  Total Adjustments   $ 0.000   $ 0.000   $ 0.000   $ 0.000   $ 0.000
(2)
Net of Cash & Cash Equivalents.

44

Discounted Cash Flow Methodology

45

Discounted Cash Flow Methodology

Discounted Cash Flow Summary

 
   Enterprise Value Range
   Probability(1)
  
Going Concern Discounted Cash Flow   $0.731 - $1.180   80 %
Discounted Cash Flow Assuming Tenet Contract is Not Renewed   $0.085 - $0.085   20 %
Probability Adjusted Conclued Enterprise Value (Rounded)   $0.600 - $0.960      
   
     
Less: Interest-Bearing Debt   $2.503 - $2.503      
Add: Cash   $0.041 - $0.041      
Total Value of Equity   ($1.862) - ($1.502)      
Concluded Equity Value   $0.000      
   
     
(1)
Per Physician Advantage management.

46

Going Concern Discounted Cash Flow Valuation—Gordon Growth

 
   Projected Fiscal Year
Ending December 31, 2002(1)
 
   (figures in millions)
EBIT   $ 0.108
  Less: Taxes     0.043
   
Debt-Free Earnings   $ 0.065
  Less: Capital Expenditures     0.000
  Less: Working Capital Requirements(3)     0.000
  Add: Depreciation and Amortization     0.043
   
    Total Net Investment   $ 0.043
   
Net Debt-Free Cash Flows:   $ 0.108
  Discount Period     0.46
  Discount Factor @ 11.0%     0.95
   
Present Value of Net Debt-Free Cash Flows:   $ 0.103

Sensitivity Analysis: Enterprise Value

 
   Gordon Growth Rate
Discount Rate
   1.0%
   2.0%
   3.0%
   4.0%
   5.0%
9.0%   $ 0.891   $ 1.013   $ 1.174   $ 1.401   $ 1.741
10.0%   $ 0.800   $ 0.895   $ 1.017   $ 1.180   $ 1.408
11.0%   $ 0.728   $ 0.804   $ 0.899   $ 1.022   $ 1.185
12.0%   $ 0.668   $ 0.731   $ 0.807   $ 0.903   $ 1.026
13.0%   $ 0.618   $ 0.671   $ 0.734   $ 0.811   $ 0.907
Range of Selected Enterprise Values         $ 0.731 - $1.180      
         
     
DCF Assumptions
  
Discount Rate   11.0 %
Tax Rate   40.0 %
Gordon Growth Assumptions
  
Terminal Cash Flow (3.0% Growth Rate)   $ 0.067  
Gordon Growth Rate     3.0 %
  Terminal Value   $ 0.835  
    Discount Period     0.46  
    Discount Factor @ 11.0%     0.95  
   
 
  PV of Terminal Value   $ 0.796  
Distribution of Value
  
Period Cash Flow   11.4 %
Terminal Cash Flow   88.6 %
   
 
Total   100.0 %
(1)
Projections provided by management. 2002 represents the 11 months ending December 31, 2002.

47

(2)
Adjusted depreciation and amortization to equal capital expenditures in the terminal year.

(3)
We assumed no increase in working capital requirements based on historical trends.

48

Discounted Cash Flow Valuation Assuming Liquidation at Termination of Tenet Contract (End of October 2002)

 
   Projected Fiscal Year
Ending December
2002(1)
   Total Cash
Flows
 
   (figures in millions)
EBIT   $ 0.088      
  Less: Taxes     0.035      
   
     
Debt-Free Earnings   $ 0.053      
  Less: Capital Expenditures     0.000      
  Less: Working Capital Requirements (2)     0.000      
  Add: Depreciation and Amortization     0.035      
   
     
    Total Net Investment   $ 0.035      
   
     
Net Debt-Free Cash Flows:   $ 0.088      
  Discount Period     0.38      
  Discount Factor @ 11.0%     0.96      
   
 
Present Value of Net Debt-Free Cash Flows:   $ 0.085   $ 0.085
         
Present Value of Net Debt-Free Cash Flows   $ 0.085      
Book Value as of 9/30/01     0.000      
   
     
Total Value of Physician Advantage Assuming Termination of Tenet Contract   $ 0.085      
(1)
Projections provided by management. 2002 goes through the end of October, at which time management indicated the Company's contract with Tenet expires and is up for renewal.

(2)
We assumed no increase in working capital requirements based on historical trends.

49

Transaction Indication

50

Transaction Indication

Date
   Target
   Acquiror
   Description
   Purchase
Price
(Control)
  
Currently
Negotiating		   Physician
Advantage		   Invinity
Systems		   Invinity Systems, an affiliate of United Medical Alliance Corp., proposed to purchase the Company's assets for cash of $250K, a note for $250K due 90 days after the closing, and common stock of Invinity having a nominal value of $500K. Invinity is a privately held, early state company with minimal revenues and operating losses.   $ 1,000  
    Conclusion:                
    Purchase Price           $ 1.000  
    Less: Debt           $ 2.503  
    Add: Cash           $ 0.041  
               
 
                $ (1.462 )
    Implied
Equity Value		           $ 0.000  
               
 

51

Liquidation Analysis

52

Liquidation Analysis

 
   Reported as of
1/31/02
  
Cash   $ 0.041  
Accounts Receivable   $ 0.216  
Prepaid Expense   $ 0.001  
   
 
  Total Current Assets   $ 0.258  
Computer Equipment   $ 0.13  
Furniture and Equipment   $ 0.015  
Leasehold Improvements   $ 0.003  
Accumulated Depreciation   $ (0.069 )
   
 
  Net Fixed Assets   $ 0.074  
Other Assets   $ 0.023  
Trademark   $ 0.007  
   
 
  Total Assets   $ 0.362  
Accounts Payable   $ 0.004  
Accrued Expense   $ 0.084  
Current Maturities   $ 0.832  
   
 
  Total Current Liabilities   $ 0.920  
Loan Payable—WCI   $ 2.000  
Other Current Liabilities   $ 0.505  
  Total Liabilities   $ 3.425  
Capital   $ (3.070 )
Net Income   $ 0.007  
   
 
  Total Capital   $ (3.063 )
Total Liabilities and Capital   $ 0.362  
Book Value   $ (3.063 )
   
 

53

Exhibits

54

Houlihan Lokey Acquisition of Minority Interest Study Summary

55


Westminster Capital

Houlihan Lokey Acquisition of Minority Interest Study Summary

    •
    The following chart highlights the 70 transactions analyzed.(1)

Acquisition of Minority Interest Study
Summary of Premiums (Discounts) Paid

 
    
   Median Premium (Discount)
  
Year
   # of Transactions
   1 Day
   1 Week
   1 Month
  
2001   1   12.5 % 11.7 % 14.5 %
2000   7   24.5 % 37.0 % 34.3 %
1999   9   39.0 % 39.9 % 41.2 %
1998   10   10.5 % 19.0 % 14.6 %
1997   18   27.3 % 27.8 % 30.7 %
1996   8   16.7 % 15.2 % 17.3 %
1995   9   25.8 % 23.1 % 25.3 %
1994   8   33.2 % 36.0 % 31.5 %
   
             
Total   70              
High       276.9 % 290.0 % 290.0 %
Low       -8.5 % -11.6 % -40.6 %
Median       25.6 % 25.4 % 28.7 %
Mean       31.6 % 33.6 % 35.8 %
    •
    For the 70 transactions analyzed, the median implied premium calculated by comparing the final offer price to the price of the Target's stock one week prior to announcement was 25.4 percent.
(1)
See the "Acquisition of Minority Interest Study" section for further detail on each transaction within the Study.

56

    •
    Based on the transactions analyzed in Houlihan Lokey's study, it appears that the magnitude of the premiums paid by Controlling Stockholders when acquiring a minority interest is somewhat influenced by the percentage of stock that the Controlling Stockholder is attempting to acquire, with smaller blocks commanding higher average premiums than larger blocks.

Acquisition of Minority Interest Study
Analysis of Premiums (Discounts) Paid Relative to Size of Minority Interest Acquired

 
    
   Median Premium (Discount)
  
% Acquired
   # of Transactions
   1 Day
   1 Week
   1 Month
  
0 - 10%   5   35.4 % 38.2 % 32.5 %
10 - 20%   26   26.1 % 26.6 % 27.2 %
20 - 30%   8   28.3 % 32.6 % 36.5 %
30 - 40%   16   15.6 % 15.6 % 15.6 %
40 - 50%   15   19.2 % 20.3 % 24.0 %
   
             
Total   70              

57

    •
    In addition, in acquisitions where the aggregate purchase price exceeded $500.0 million, the average premiums paid were lower than the average premiums paid in smaller transactions.

Acquisition of Minority Interest Study
Analysis of Premium (Discounts) Paid Relative to Transaction Value

 
    
   Median Premium (Discount)
  
Transaction Value
   # of Transactions
   1 Day
   1 Week
   1 Month
  
Under $100MM   28   24.9 % 25.3 % 29.8 %
$100 - $500MM   30   28.8 % 29.0 % 28.4 %
Over $500MM   12   23.3 % 22.9 % 27.3 %
   
             
Total   70              
    •
    In 51 out of 70 transactions analyzed (72.9 percent), the consideration offered to the minority stockholders was cash, whereas in the balance of the transactions the consideration involved stock of the Controlling Stockholder.

    •
    Based on Houlihan Lokey's analysis, the lowest premiums were seen in transactions where all-stock consideration was offered to the Minority Stockholders.

Acquisition of Minority Interest Study
Analysis of Premium (Discounts) Paid Relative to Kind of Consideration

 
    
   Median Premium (Discount)
  
Type of Consideration
   # of Transactions
   1 Day
   1 Week
   1 Month
  
Cash   51   25.8 % 27.0 % 29.3 %
Stock   10   14.7 % 19.2 % 22.2 %
Combined   9   19.1 % 22.4 % 28.9 %
   
             
Total   70              

58


Houlihan Lokey Acquisition of Minority Interest Study

59

Houlihan Lokey Acquisition of Minority Interest Study

 
    
    
    
    
    
    
    
    
    
   Premium To Pre-Announce Date Stock Price
  
 
    
    
    
    
    
    
    
   Initial
Offer
Price/
Share
   Final
Offer
Price/
Share
   Initial Offer
   Final Offer
  
Date
Announced
    
    
   Type of
Consideration
    
   Value of
Transaction
   % Shares
Held at
Announcement
   % of
Shares
Acquired
  
  Target Name
   Acquiror Name
   Litigation
   1 Day
   1 Week
   1 Month
   1 Day
   1 Week
   1 Month
  
($ in millions except per share amounts)

  
02/15/01   Westfield America   Westfield America Trust   Cash Only   Yes   $ 270.0   56.9   43.1   $ 16.25   $ 16.25   12.5 % 11.7 % 14.5 % 12.5 % 11.7 % 14.5 %
 
09/21/00   Hertz Corp   Ford Motor Company   Cash Only   Yes     710.0   81.5   18.5     30.00     35.50   23.7 % 20.6 % -4.2 % 46.4 % 42.7 % 13.4 %
08/30/00   AXA Financial   AXA Group   Cash & Stock   No     11,189.3   54.7   45.3     53.50     54.63   2.4 % 7.5 % 31.5 % 4.6 % 9.8 % 34.3 %
08/15/00   Infinity Broadcasting   Viacom Inc   Stock Only   Yes     12,500.0   64.3   35.7     32.89     40.04   -6.7 % -12.1 % -7.0 % 13.6 % 7.0 % 13.2 %
07/09/00   Life Technologies   Invitrogen   Cash & Stock   Yes     377.0   75.0   25.0     60.00     60.00   18.8 % 22.4 % 19.7 % 18.8 % 22.4 % 19.7 %
04/24/00   Cherry   CABO Acquisition   Cash Only   Yes     266.0   53.0   47.0     18.75     26.40   44.2 % 38.2 % 18.8 % 103.1 % 94.7 % 67.3 %
03/21/00   Travelers Property Casualty   Citigroup   Cash Only   Yes     2,430.0   85.0   15.0     41.50     41.95   23.2 % 38.0 % 33.6 % 24.5 % 39.5 % 35.1 %
03/16/00   Vastar Resources   BP Amoco   Cash Only   Yes     1,500.0   81.9   18.1     71.00     83.00   12.5 % 17.2 % 36.0 % 31.5 % 37.0 % 59.0 %
 
12/01/99   Boise Cascade Office Products   Boise Cascade   Cash Only   Yes     204.9   81.2   18.8     13.25     16.50   15.2 % 22.5 % 27.7 % 43.5 % 52.6 % 59.0 %
03/30/99   PEC Israel Economic   Discount Investment   Cash Only   Yes     320.0   81.4   18.7     30.00     36.50   1.1 % 1.1 % 3.2 % 22.9 % 22.9 % 25.6 %
06/03/99   Genentech   Roche Holding   Cash Only   No     4,300.0   65.0   35.0     82.50     82.50   276.9 % 290.0 % 290.0 % 276.9 % 290.0 % 290.0 %
05/21/99   ThermoSpectra   Thermo Instrument Systems   Cash Only   No     19.4   85.5   14.5     16.00     16.00   39.1 % 43.8 % 61.0 % 39.1 % 43.8 % 61.0 %
05/07/99   J Ray McDermott   McDermott International   Cash Only   No     513.0   63.0   37.0     35.62     35.62   16.8 % 13.1 % 19.2 % 16.8 % 13.1 % 19.2 %
05/05/99   Thermo Power   Thermo Electron   Cash Only   No     30.9   69.3   30.7     12.00     12.00   5.5 % -1.5 % 41.2 % 5.5 % -1.5 % 41.2 %
03/24/99   Knoll   Warburg Pincus Ventures   Cash Only   Yes     496.0   60.0   40.0     25.00     28.00   63.9 % 35.6 % 30.7 % 83.6 % 51.9 % 46.4 %
03/08/99   LabOne   Lab Holdings   Cash & Stock   No     33.1   80.5   19.5     12.75     12.75   19.1 % 19.5 % 20.5 % 19.1 % 19.5 % 20.5 %
02/24/99   Industrial Scientific   Investor Group   Cash Only   No     26.0   67.7   32.3     28.50     28.50   39.0 % 39.9 % 39.0 % 39.0 % 39.9 % 39.0 %
 
10/27/98   Citizens   Allmerica Financial   Cash Only   Yes     212.4   83.2   16.8     29.00     33.25   5.2 % 2.2 % 5.5 % 20.6 % 17.2 % 20.9 %
10/21/98   Capital Factors Holdings   Union Planters   Cash Only   No     16.6   92.3   7.7     17.50     17.50   6.7 % 8.9 % 2.9 % 6.7 % 8.9 % 2.9 %
09/29/98   Newmont Gold   Newmont Mining   Stock Only   Yes     264.8   93.8   6.2     24.28     25.37   -9.2 % 15.6 % 63.2 % -5.2 % 20.8 % 70.6 %
09/23/98   Ryerson Tull   Inland Steel Industries   Stock Only   Yes     61.2   86.4   13.6     10.80     11.44   -13.6 % -16.5 % -43.9 % -8.5 % -11.6 % -40.6 %
08/24/98   Tele-Commun   Liberty Media   Stock Only   Yes     379.1   83.0   17.0     22.00     22.00   4.8 % 1.1 % -4.6 % 4.8 % 1.1 % -4.6 %
04/30/98   Mycogen   Dow AgroSciences   Cash Only   No     355.2   69.0   31.0     20.50     28.00   3.8 % 2.5 % 12.5 % 41.8 % 40.0 % 53.7 %
03/10/98   IP Timberlands   IP Forest Resources   Cash Only   No     99.5   84.4   15.6     13.63     13.63   33.0 % 31.4 % 2.4 % 33.0 % 31.4 % 2.4 %
01/22/98   BT Office Products   Buhrmann   Cash Only   Yes     138.1   70.0   30.0     10.50     13.75   1.2 % 36.6 % 34.4 % 32.5 % 78.9 % 76.0 %
01/21/98   NACT Telecommunications   World Access   Cash & Stock   No     53.1   67.3   32.7     17.50     17.50   9.8 % 12.4 % 27.3 % 9.8 % 12.4 % 27.3 %
01/08/98   Rayonier Timberlands   Rayonier   Cash Only   No     65.8   74.7   25.3     13.00     13.00   11.2 % 25.3 % 8.3 % 11.2 % 25.3 % 8.3 %
 
10/23/97   Brad Ragan   Goodyear Tire & Rubber   Cash Only   No     20.7   74.6   25.4     32.00     37.25   6.7 % 3.2 % 10.3 % 24.2 % 20.2 % 28.4 %
09/18/97   Guaranty National   Orion Capital   Cash Only   No     117.2   81.6   18.4     34.00     36.00   4.6 % 17.0 % 20.9 % 10.8 % 23.9 % 28.0 %
09/10/97   BET Holdings   Investor Group   Cash Only   Yes     462.3   61.0   39.0     48.00     63.00   14.6 % 20.8 % 22.3 % 50.4 % 58.5 % 60.5 %
08/29/97   Rexel   Rexel   Cash Only   Yes     302.0   50.6   49.4     19.50     22.50   3.3 % 9.5 % 5.4 % 19.2 % 26.3 % 21.6 %
07/09/97   Seaman Furniture   Investor Group   Cash Only   No     45.6   80.0   20.0     24.00     25.05   22.3 % 22.3 % 21.1 % 27.6 % 27.6 % 26.4 %
06/26/97   Rhone-Poulenc Rorer   Rhone-Poulenc   Cash Only   Yes     4,831.6   68.0   32.0     92.00     97.00   15.8 % 16.5 % 22.7 % 22.1 % 22.8 % 29.3 %
06/20/97   Wheelabrator Technologies   Waste Management   Cash Only   Yes     869.7   67.0   33.0     15.00     16.50   15.4 % 16.5 % 20.0 % 26.9 % 28.2 % 32.0 %
06/12/97   Bally's Grand   Hilton Hotels   Cash Only   No     42.6   85.0   15.0     52.75     52.75   35.3 % 34.4 % 36.6 % 35.3 % 34.4 % 36.6 %
06/03/97   Faulding   FH Faulding & Company   Cash Only   Yes   $ 77.3   62.0   38.0   $ 12.00   $ 13.50   11.6 % 9.1 % 32.4 % 25.6 % 22.7 % 49.0 %
06/02/97   Acordia   Anthem   Cash Only   No     193.2   66.8   33.2     40.00     40.00   12.7 % 11.5 % 26.5 % 12.7 % 11.5 % 26.5 %
05/22/97   Chaparral Steel   Texas Industries   Cash Only   No     72.8   85.0   15.0     14.25     15.50   10.7 % 15.2 % 23.2 % 20.4 % 25.3 % 34.1 %
05/14/97   Enron Global Power & Pipelines   Enron   Stock Only   No     428.0   52.0   48.0     32.00     35.00   5.8 % 7.6 % 13.3 % 15.7 % 17.6 % 23.9 %
04/07/97   North Carolina Railroad   North Carolina   Cash Only   No     70.7   75.0   25.0     66.00     66.00   68.2 % 69.8 % 71.4 % 68.2 % 69.8 % 71.4 %
02/28/97   American Financial Enterprise   American Financial   Cash or Stock   No     85.1   83.0   17.0     37.00     37.00   48.0 % 48.0 % 41.0 % 48.0 % 48.0 % 41.0 %
02/25/97   Fina   Petrofina   Cash & Warrant   Yes     257.0   85.3   14.7     60.00     64.75   19.7 % 18.5 % 19.4 % 29.2 % 27.9 % 28.9 %
02/20/97   NHP   Apartment Investment   Cash and/or Stock   No     114.5   55.0   45.0     20.00     25.88   30.1 % 31.1 % 21.2 % 68.3 % 69.7 % 56.8 %
01/21/97   Mafco Consolidated Group   Mafco Holdings   Cash Only   Yes     116.8   85.0   15.0     38.50     43.50   41.9 % 41.9 % 49.5 % 60.4 % 60.4 % 68.9 %

60

01/13/97   Zurich Reinsurance Centre   Zurich Versicherungs   Cash Only   Yes     319.0   66.4   33.6     36.00     39.50   17.1 % 18.5 % 12.5 % 28.5 % 30.0 % 23.4 %
 
12/17/96   Allmerica Property & Casualty   Allmerica Financial   Cash and/or Stock   Yes     816.9   59.5   40.5     29.00     33.00   1.8 % -0.9 % 1.3 % 15.8 % 12.8 % 15.3 %
11/27/96   Central Tractor Farm & Country   JW Childs Equity Partners   Cash Only   No     56.7   64.5   35.5     14.25     14.25   17.5 % 17.5 % 22.6 % 17.5 % 17.5 % 22.6 %
10/03/96   LXE   Electromagnetic Sciences   Stock Only   No     14.8   81.0   19.0     13.13     14.43   22.1 % 14.2 % 19.4 % 34.2 % 25.5 % 31.2 %
08/26/96   Bankers Life Holding   Conseco   Stock Only   No     118.0   90.5   9.5     22.00     25.04   18.9 % 21.4 % 4.8 % 35.4 % 38.2 % 19.2 %
08/08/96   Roto-Rooter   Chemed   Cash Only   No     93.6   58.0   42.0     41.00     41.00   12.3 % 12.3 % 11.2 % 12.3 % 12.3 % 11.2 %
05/24/96   SyStemix   Novartis   Cash Only   Yes     107.6   72.2   27.8     17.00     19.50   54.5 % 41.7 % 38.8 % 77.3 % 62.5 % 59.2 %
04/29/96   Crocker Realty Trust   Highwoods Properties   Cash Only   No     76.1   77.0   23.0     11.05     11.05   10.5 % 11.9 % 14.8 % 10.5 % 11.9 % 14.8 %
03/29/96   Great American   Equity Holdings   Cash Only   Yes     63.3   87.9   12.1     50.00     50.00   6.7 % 7.5 % 7.2 % 6.7 % 7.5 % 7.2 %
 
09/26/95   SCOR US   SCOR   Cash Only   No     59.9   80.0   20.0     14.00     15.25   2.8 % 5.7 % 0.0 % 11.9 % 15.1 % 8.9 %
08/25/95   GEICO   Berkshire Hathaway   Cash Only   No     2,349.2   51.0   49.0     70.00     70.00   25.6 % 23.1 % 25.3 % 25.6 % 23.1 % 25.3 %
07/28/95   Ivey Properties   BAC   Cash Only   No     82.2   50.0   50.0     32.00     32.00   45.5 % 45.5 % 77.8 % 45.5 % 45.5 % 77.8 %
07/14/95   REN Corp-USA   COBE Laboratories   Cash Only   No     182.1   53.0   47.0     18.00     20.00   14.3 % 8.3 % 11.6 % 27.0 % 20.3 % 24.0 %
07/03/95   Jupiter National   Johnston Industries   Cash Only   No     30.5   55.0   45.0     29.50     33.97   9.3 % 10.3 % 27.6 % 25.8 % 27.0 % 46.9 %
04/07/95   LIN Broadcasting   McCaw Cellular Comm.   Cash Only   Yes     3,209.4   52.0   48.0     127.50     129.90   4.9 % 4.7 % 4.7 % 6.9 % 6.7 % 6.7 %
04/05/95   Club Med   Club Mediterranee   Cash Only   Yes     153.4   70.8   29.2     26.25     32.00   16.0 % 14.8 % 18.6 % 41.4 % 39.9 % 44.6 %
03/15/95   Ropak   LinPac Mouldings   Cash Only   No     28.5   57.0   43.0     11.00     11.00   6.0 % 6.0 % 2.3 % 6.0 % 6.0 % 2.3 %
02/06/95   Rust International   WMX Technologies   Cash Only   No     56.9   96.0   4.0     14.00     16.35   16.7 % 20.4 % 21.7 % 36.3 % 40.6 % 42.2 %
 
12/28/94   Fleet Mortgage Group   Fleet Financial Group   Cash Only   No     188.1   81.0   19.0     20.00     20.00   19.4 % 19.4 % 21.2 % 19.4 % 19.4 % 21.2 %
11/02/94   Pacific Telecom   PacifiCorp   Cash Only   Yes     159.0   86.6   13.4     28.00     30.00   15.5 % 15.5 % 15.5 % 23.7 % 23.7 % 23.7 %
09/08/94   Contel Cellular   GTE   Cash Only   No     254.3   90.0   10.0     22.50     25.50   26.8 % 26.8 % 16.9 % 43.7 % 43.7 % 32.5 %
08/24/94   Castle & Cooke Homes   Dole Food   Cash Only   No     81.5   83.3   16.7     14.00     15.75   20.4 % 25.8 % 38.3 % 35.5 % 41.6 % 55.6 %
07/29/94   Intergroup Healthcare   Foundation Health   Stock Only   No     255.7   62.6   37.4     65.00     65.00   36.8 % 74.5 % 47.7 % 36.8 % 74.5 % 47.7 %
06/30/94   EB   Parkway   Cash & Stock   No     12.5   51.3   48.7     14.59     17.66   11.1 % 14.4 % 26.8 % 34.6 % 38.5 % 53.6 %
06/06/94   Ogden Projects   Ogden   Stock Only   Yes     110.3   84.2   15.8     17.07     18.38   -1.8 % 9.2 % 11.9 % 5.8 % 17.6 % 20.5 %
02/17/94   Scripps Howard Broadcasting   EW Scripps   Stock Only   No     115.9   86.0   14.0     86.00     103.50   9.6 % 11.0 % 8.5 % 31.8 % 33.5 % 30.6 %

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