<PAGE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31,
ZAPATA CORPORATE 2002 2001
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<S> <C> <C>
CASH PROVIDED BY (USED IN)
Operating activities ............................... $ (1,729) $ 174
Investing activities ............................... (9,804) 41,830
Financing activities ............................... -- --
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Net (decrease) increase in cash and cash equivalents $ (11,533) $ 42,004
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Net cash used in (provided by) operating activities
Zapata Corporate's cash used in operating activities increased during the three
months ended March 31, 2002 as compared to the same period in the prior year.
The increase was primarily due to the timing of payments of certain payables and
accruals and a reduction in interest income during the quarter as compared to
the same period in the prior year.
Net cash (used in) provided by investing activities
Zapata Corporate had net cash used in investing activities during the three
months ended March 31, 2002 as compared to net cash provided by investing
activities during the same period in the prior year. The change from net cash
provided by investing activities to net cash used in investing activities was
primarily due to an increase in purchases in short-term investments and a
decrease in proceeds from maturities of short-term investments during the
quarter as compared to the same period in the prior year.
Net used in financing activities
Zapata Corporate had no cash provided by (used in) financing activities during
the three months ended March 31, 2002 or March 31, 2001.
RECENT ACCOUNTING PRONOUNCEMENTS
In July 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 141 "Business Combinations" and
No. 142 "Goodwill and Other Intangible Assets." SFAS No. 141 requires that all
business combinations be accounted for under the purchase method only and that
certain acquired intangible assets in a business combination be recognized as
assets apart from goodwill. SFAS No. 142 requires that ratable amortization of
goodwill be replaced with periodic tests of the goodwill's impairment and that
intangible assets other than goodwill be amortized over their useful lives. SFAS
No. 141 is effective for all business combinations initiated after June 30,
2001, and the provisions of SFAS No. 142 are effective for all fiscal years
beginning after December 15, 2001. The Company's adoption of the provisions of
SFAS No. 141 and 142 on January 1, 2002 did not have a material impact on the
Company's financial position or its results of operations.
In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations." SFAS No. 143 requires that obligations associated with the
retirement of a tangible long-lived asset to be recorded as a liability when
those obligations are incurred, with the amount of the liability initially
measured at fair value. Upon initially recognizing a liability for an asset
retirement obligation, an entity must capitalize the cost by recognizing an
increase in the carrying amount of the related long-lived asset. Over time, the
liability is accreted to its present value each period, and the capitalized cost
is depreciated over the useful life of the related asset. Upon settlement of the
liability, an entity either settles the obligation for its recorded amount or
incurs a gain or loss upon settlement. The provisions of SFAS No. 143 will be
required to be adopted by the Company in Fiscal 2003. The Company has not
determined what impact, if any, this statement will have on the Company's
financial position or its results of operations.
In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets." SFAS No. 144 addresses the accounting model for
long-lived assets to be disposed of by sale and resulting
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