<PAGE>
ZAPATA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following table reconciles the income tax provisions for all periods
computed using the U.S. statutory rate of 35% to the provisions from continuing
operations as reflected in the financial statements:
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2001 2000 1999
------------ ------------ ------------
(IN THOUSANDS)
<S> <C> <C> <C>
Benefit at statutory rate............................... $ 2,281 $15,145 $11,188
Foreign sales corporation exempt income................. 216 -- --
Adjustment for prior year deferred taxes................ -- (2,637) --
Non-deductible costs.................................... -- (487) --
Valuation allowance for deferred tax assets............. 10,609 (3,724) (6,431)
Adjustment for basis difference in subsidiary........... (183) 3,368 --
State taxes, net of federal benefit..................... 485 1,141 722
Other................................................... (639) (285) 279
------- ------- -------
Benefit for income taxes................................ $12,769 $12,521 $ 5,758
======= ======= =======
</Table>
Temporary differences and tax credit carryforwards that gave rise to
significant portions of deferred tax assets and liabilities are as follows:
<Table>
<Caption>
DECEMBER 31, DECEMBER 31,
2001 2000
------------ ------------
(IN THOUSANDS)
<S> <C> <C>
Deferred tax assets:
Asset write-downs and accruals not yet deductible......... $ 4,516 $ 6,158
Investment tax credit carryforwards....................... -- 851
Alternative minimum tax credit carryforwards.............. 7,770 7,557
Equity in loss of unconsolidated affiliates............... 306 8,553
Net operating loss carryforward........................... 15,077 14,796
Valuation loss on investment.............................. -- 3,724
Capital loss carryforward/carryback....................... -- 1,733
Loss in market valuation -- available for sale
securities............................................. -- 1,721
Other..................................................... 500 50
-------- --------
Total deferred tax assets................................... 28,169 45,143
Valuation allowance......................................... -- (14,543)
-------- --------
Net deferred tax assets..................................... 28,169 30,600
-------- --------
Deferred tax liabilities:
Property and equipment.................................... (8,800) (7,672)
Pension................................................... (4,559) (6,381)
Write up of subsidiary investment......................... (6,911) (6,911)
Amortized market discount on bonds........................ -- (302)
State Income Tax.......................................... 373 --
Other..................................................... -- --
-------- --------
Total deferred tax liabilities.............................. (19,897) (21,266)
-------- --------
Net deferred tax asset...................................... $ 8,272 $ 9,334
======== ========
</Table>
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