<PAGE>
ZAPATA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
NOTE 7. PROPERTY AND EQUIPMENT
Property and equipment, net as of December 31, 2001 and 2000 are summarized
as follows:
<Table>
<Caption>
DECEMBER 31, DECEMBER 31,
2001 2000
------------ ------------
(IN THOUSANDS)
<S> <C> <C>
Land........................................................ $ 5,390 $ 5,390
Plant assets................................................ 69,674 69,772
Fishing vessels............................................. 73,183 72,933
Furniture and fixtures...................................... 2,213 2,466
Other....................................................... 1,227 --
-------- --------
151,687 150,561
Less: Accumulated depreciation and impairment............... 69,448 61,187
-------- --------
$ 82,239 $ 89,374
======== ========
</Table>
Depreciation expense for 2001, 2000 and 1999 was $8.6 million, $8.5 million
and $8.0 million, respectively.
NOTE 8. LONG-TERM INVESTMENTS, AVAILABLE FOR SALE
The Company held no available for sale securities as of December 31, 2001.
As of December 31, 2000, the Company held approximately $13.4 million in
available for sale corporate debt, which included an unrealized loss of
approximately $4.4 million. These bonds were considered non-investment grade and
were purchased at a large discount to par value. Available for sale securities
consisted of the following at December 31, 2000:
<Table>
<Caption>
AMORTIZED MARKET VALUE UNREALIZED
COST BASIS DECEMBER 31, 2000 GAIN (LOSS)
---------- ----------------- -----------
<S> <C> <C> <C>
Decora Industries, Inc................................. $ 1,273 $ 1,273 $ --
Pueblo Xtra, Inc....................................... 12,589 8,854 (3,735)
Franks Nursery & Crafts, Inc........................... 368 394 26
Newcor, Inc............................................ 1,954 1,250 (704)
Davel Communications, Inc.............................. 1,625 1,625 --
------- ------- -------
Total.................................................. $17,809 $13,396 $(4,413)
======= ======= =======
</Table>
As of December 31, 2000, management deemed the decline in the fair value of
the Company's investment in Decora Industries Inc. ("Decora") to be "other than
temporary" following Decora's announcement that it had filed for protection
under Chapter 11 of the U.S. Bankruptcy Code. In connection with this
impairment, the Company recognized an additional loss on the investment during
the first quarter of 2001 of approximately $764,000 resulting in a remaining
book value of approximately $509,000. During September 2001, the Company sold
its investment in Decora for approximately $2,000 resulting in an additional
realized loss of $507,000. The realized capital loss on sale of this investment
will be carried back to the fiscal 1998 tax return resulting in a benefit of
approximately $3.5 million.
As of June 30, 2001, management deemed the decline in the fair value of the
Company's investment in Pueblo Xtra, Inc. ("Pueblo") to be "other than
temporary" based on adverse financial trends and intense competitive pressures
on Pueblo. In connection with this impairment, the Company recognized a loss on
the investment of approximately $8.6 million resulting in a remaining book value
of approximately $4.0 million. During September 2001, the Company sold its
investment in Pueblo for approximately $3.6 million resulting
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