<PAGE>
 
estimated loss on disposition.  As a result of the Company's decision to retain
the marine protein operations, the $8.9 million reserve has been reversed in the
current quarter.  Marine protein revenues of $39.6 million and operating income
of $1.8 million for the first six months of fiscal 1995 have been reclassified
to continuing operations.  Also, marine protein assets and liabilities of $80.7
million and $23.9 million, respectively, as of June 30, 1995 and assets and
liabilities of $100.2 million and $32.6 million, respectively, as of September
30, 1994 have been reclassified to continuing operations.

          As a result of adopting SFAS 121, Zapata recorded a $12.6 million
pretax provision for asset impairment to reduce its marine protein assets.  The
provision was based on the estimated fair market value of the marine protein
assets.  The fair market value of the marine protein assets was determined based
upon the highest third-party competitive bid which had been received by the
Company.

NOTE 4.  RESTATED FISCAL 1995 RESULTS OF OPERATIONS
- ---------------------------------------------------

          Zapata's first and second quarter income statements for fiscal 1995
have been restated as follows to reclassify the marine protein operating results
to continuing operations, amounts in thousands.

<TABLE>
<CAPTION>
 
                                    Three Months Ended
                                  ------------------------
                                   December 31, March 31,
                                       1994       1995
                                  ------------- ----------
<S>                               <C>           <C>
 
Revenues                              $65,551    $58,120
Operating income (loss)                 2,064        699
Net income                            $   748    $ 2,931
</TABLE>

NOTE 5.  SUBSEQUENT EVENT
- -------------------------

          In August 1995, Zapata completed the sale of its remaining U.S.
offshore oil and gas properties.  The Company received cash, a production
payment entitling Zapata to a share of future revenues derived from the
properties and other contract consideration.  No gain or loss was recognized
from the sale.

          In August 1995, Zapata announced that it had acquired 31% of the
outstanding common stock of Envirodyne Industries, Inc. ("Envirodyne") for $18.8
million from Malcolm Glazer, Chairman of the Board of Zapata and a director of
Envirodyne.  Zapata paid the purchase price by issuing to the seller a
subordinated promissory note bearing interest at prime and maturing in August
1997.  Envirodyne is one of the world's major suppliers of food packaging
products and food service supplies..  This acquisition is the first major step
in the transformation of Zapata away from the energy business and into food-
related businesses.  Zapata is evaluating acquiring additional shares or
proposing a merger with, or acquisition of, Envirodyne in the future.

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