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Malcolm Glazer because, in the case of Mr. Loar, he was employed by a
corporation indirectly controlled by Malcolm Glazer until his retirement (which
occurred more than five years ago), and in the case of Mr. Leffler, that he has
served as a paid consultant to Malcolm Glazer. The Company believes that the
complaint and allegations contained therein are without merit and intends to
defend the case vigorously.
* * * *
RECOMMENDATION OF THE COMPANY'S BOARD OF DIRECTORS
THE BOARD OF DIRECTORS RECOMMENDS THAT THE STOCKHOLDERS OF THE COMPANY VOTE
"FOR" THE ENERGY INDUSTRIES SALE PROPOSAL.
As discussed previously under "-- Background of the Energy Industries Sale
Proposal", the Board of Directors determined that the Energy Industries Sale
Proposal was expedient and fair to, and in the best interests of, the Company
and its stockholders. In making this determination, the following factors were
considered and evaluated:
(i) The Board's consideration that the focus of the Company's business
strategy had shifted from the energy business toward the food processing
business. The Board therefore elected to begin the exit of the energy
business through the sale of Energy Industries and the other energy related
operations discussed under "Background of the Energy Industries Sale
Proposal";
(ii) The Board's review of presentations from, and discussions of the
terms and conditions of the Energy Industries Sale Proposal with, senior
executive officers of the Company and Energy Industries;
(iii) The Board's consideration of, among other things, information with
respect to the financial condition, results of operations and business of
the Company and Energy Industries, on both a historical and a prospective
basis;
(iv) The fact that five other offers to purchase Energy Industries were
received by the Company and that those offers were inferior to the
Weatherford Enterra offer with respect to price and other material terms;
and
(v) The Board's consideration of Schroder Wertheim's oral opinion, which
was to be subsequently confirmed in writing, as to the fairness to the
Company from a financial point of view, of the consideration to be received
by the Company pursuant to the Weatherford Enterra offer. In connection
with its evaluation of this factor, the Board was aware of the fact that
Schroder Wertheim did not assume any responsibility for independently
verifying the information that it reviewed in connection with the rendering
of its opinion and that Schroder Wertheim assumed the accuracy and
completeness of all information made available or obtained by it. However,
the Board believed that reliance by Schroder Wertheim was reasonable and
was consistent with the Company's management's understanding of such
information which related to the Company and Energy Industries, based on
management's historical familiarity and day-to-day utilization of such
information.
The Board did not assign relative weights to the factors discussed above.
In light of the Company's overall strategic plan of exiting the energy
services business, the Board did not consider other alternatives to the sale of
Energy Industries, such as its continuing operation, growth of Energy
Industries through potential acquisitions, or strategic alliances or joint
ventures of Energy Industries with other third parties.
The Energy Industries Sale is a major step in the Company's transition from
an energy company to a food services company. The Company intends to use the
net proceeds from the Energy Industries Sale for general corporate purposes,
which may include repayment of debt, and for future acquisitions or joint
ventures that are expected to be in the food services industry. While the
Company is actively seeking
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