<PAGE>
 
was due primarily to a 17.5% and 37.7% increase in the selling price of Omega's
fish meal and fish oil products, respectively, along with a 43.8% increase in
sales volume of Omega's fish oil.
 
     Product development.  There were no product development costs for the year
ended December 31, 2001, as compared to $1.5 million of such costs in the prior
year. This decrease is due to the termination of the Company's Internet
operations in December 2000.
 
     Selling, general and administrative.  Selling, general, and administrative
expenses decreased $3.2 million or 20.0%, from $15.8 million in 2000 to $12.6
million in 2001. This decrease was primarily due to termination of the Company's
Internet operations in December of 2000 and a reduction in staffing and related
employee costs at Omega, partially offset by Omega's recognition of $1.4 million
in receivables due from an insurance company as uncollectible due to the
insurance company's bankruptcy filing.
 
     Impairment of long-lived assets.  For the year ended December 31, 2001, the
Company recorded $232,000 in impairment of long-lived assets, consisting
primarily of the write-down of Charged Productions, Inc.'s investment in Charged
Productions LLC to zero. As a result of the termination of the Company's
Internet operations in 2000, $1.3 million of assets were deemed to be impaired
as of December 31, 2000.
 
     Contract termination (settlement) expense.  Based on the decision to
terminate Internet operations in December of 2000, Charged Productions and
Zap.Com recorded expenses and associated accrued liabilities for cost associated
with exiting the business totaling $779,000. These expenses related primarily to
Zap.Com's costs associated with certain contracts entered into by Zap.Com during
its development stage that were deemed to have no future value. During 2001,
Zap.Com favorably settled its disputes over two of its contracts. Accordingly,
Zap.Com reversed previous accruals of $403,000 into income resulting from the
settlement amounts being less than the associated accrued liabilities.
 
     Interest income, net.  Net interest income decreased $3.9 million or 52.5%
from net interest income of $7.4 million in 2000 to $3.5 million in 2001. This
decrease was a result of significantly lower interest rates on short-term U.S.
Government Agency securities as compared to rates in 2000, as well as Omega
Protein incurring more interest expense during the current year. Omega incurred
net interest expense of $485,000 in 2001 as compared to $293,000 in the prior
year. The increase in net interest expense at Omega was primarily due to a
reduction of interest income as a result of lower returns on investments. Also,
in 2001, the Company received approximately $1.1 million of interest income
earned on the Company's non-investment grade securities as opposed to
approximately $2.4 million 2000.
 
     Realized loss on non-investment grade securities.  Realized loss on
non-investment grade securities for the year ended December 31, 2001 was $11.8
million as compared to $13.2 million for the previous year. Management decided
to sell its non-investment grade securities during the second and third quarters
of 2001, resulting in a realized loss of $11.8 million in 2001. For 2000, the
$13.2 million in realized losses relates primarily to "other than temporary"
write-downs of the non-investment grade debt held in the Company's available for
sale portfolio.
 
     Income taxes.  The Company recorded benefit for income taxes of $12.8
million in 2001 as compared to $12.5 million in 2000. The benefit of $12.8
million in 2001 resulted from management's decision sell the Company's
non-investment grade securities and its interest in Viskase stock during the
second and third quarters of 2001, partially offset by Omega's tax provision.
The benefit of $12.5 million in 2000 was primarily the result of net operating
losses incurred by Omega Protein and Zapata. Depending on a number of factors,
the Company could incur a personal holding company tax in the future. See Part
II -- Item 7 "Management's Discussion and Analysis of Financial Condition and
Results of Operations" and "Significant Factors That Could Affect Future
Performance and Forward-Looking Statements."
 
     Minority interest.  Minority interest reflects the outside equity ownership
of Zapata's subsidiaries of approximately 39% in Omega Protein and approximately
2% in Zap.Com. In 2001, minority interest was a $1.5 million reduction of
Zapata's share in the net income of Omega Protein, offset by a reduction in
Zapata's share in the net loss of Zap.Com. In 2000, minority interest was a $6.6
million reduction of Zapata's share of the net losses incurred by Omega Protein
and Zap.Com.
 
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