<PAGE> 1
Exhibit (c)(3)
PRESENTATION TO THE SPECIAL COMMITTEE OF THE BOARD OF DIRECTORS OF:
[BROOKDALE LIVING COMMUNITIES. INC. LOGO]
REGARDING THE ASSISTED LIVING INDUSTRY
May 19, 2000
[MERRILL LYNCH LOGO]
<PAGE> 2
TABLE OF CONTENTS
1. Overview
2. Industry Operating Review
3. Public Market Perspective
4. Review of BRIDGE
[MERRILL LYNCH LOGO] 2
<PAGE> 3
1
<PAGE> 4
OVERVIEW
<PAGE> 5
OVERVIEW
o In order to understand the valuation of BRIDGE, Merrill Lynch has
conducted an extensive review of the Company, as well as six companies
that Merrill Lynch has identified as the most comparable publicly traded
entities:
* Alterra Healthcare * Capital Senior Living
* American Retirement * Emeritus
* ARV Assisted Living * Sunrise Assisted Living
o The following presentation outlines the operational, financial and public
market performance of the companies in the assisted living industry
[MERRILL LYNCH LOGO] 1
<PAGE> 6
OVERVIEW
o As the data and analysis contained herein reflect, BRIDGE is a highly
focused and profitable niche player within the assisted living industry
BRIDGE's INDUSTRY POSITIONING
<TABLE>
<CAPTION>
Rank(a)
<S> <C>
Number of Assets 7
Number of Units 7
Average Units per Asset 2
Occupancy Rate (1999) 1
NOI Margin (1999) 2
EBITDAR Margin (1999) 2
Equity Market Value 3
Total Market Capitalization 4
</TABLE>
o Merrill Lynch believes that BRIDGE is not directly comparable to the other
major publicly traded assisted living entities, largely a result of
BRIDGE's:
* Primarily independent living orientation of its facilities
* High average units per asset ratio
* Amount of development activity vis-a-vis its total asset base
o As a whole, the selected publicly traded "comparable" companies are used
for indicative purposes
* However, within the universe of public comparables, American
Retirement and Capital Senior Living appear to be the most
comparable(b)
------------
(a) Numerical ratings based on the universe of seven selected "comparable"
publicly traded assisted living entities discussed herein.
(b) As such, American Retirement and Capital Senior Living are denoted in
yellow in the various analyses to follow.
[MERRILL LYNCH LOGO] 2
<PAGE> 7
2
<PAGE> 8
INDUSTRY OPERATING REVIEW
<PAGE> 9
INDUSTRY OPERATING REVIEW
Portfolio Overview (a)
<TABLE>
<CAPTION>
NUMBER OF ASSETS
----------------
<S> <C>
Alterra Healthcare 450
Sunrise Assisted Living 147
Emeritus 129
ARV Assisted Living 58
American Retirement 54
Capital Senior Living 36
BRIDGE 24
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF UNITS(b)
-------------------
<S> <C>
Alterra Healthcare 20,714
American Retirement 13,566
Emeritus 11,726
Sunrise Assisted Living 11,635
ARV Assisted Living 7,192
Capital Senior Living 6,101
BRIDGE 5,094
</TABLE>
<TABLE>
<CAPTION>
AVERAGE UNITS PER ASSET(b)
--------------------------
<S> <C>
American Retirement 251
BRIDGE 212
Capital Senior Living 169
ARV Assisted Living 124
Emeritus 91
Sunrise Assisted Living 79
Alterra Healthcare 46
</TABLE>
---------
(a) Based on Form 10-Ks dated 12/31/99. Amounts include all owned, leased,
managed, and unconsolidated joint venture properties that are stabilized.
(b) For American Retirement and Alterra Healthcare, capacity is used instead of
number of units. Please note that American Retirement's new development
is considerably smaller at approximately 100 units per project as a result
of its "hub and spokes" strategy.
[MERRILL LYNCH LOGO] 3
<PAGE> 10
INDUSTRY OPERATING REVIEW
Properties Under Construction and Development (a)
<TABLE>
<CAPTION>
NUMBER OF ASSETS
----------------
<S> <C>
Alterra Healthcare 55
Capital Senior Living 23
Sunrise Assisted Living 22
American Retirement 14
BRIDGE 8
Emeritus 6
ARV Assisted Living 3
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF UNITS(b)
-------------------
<S> <C>
Capital Senior Living 3,200
Alterra Healthcare 2,887
Sunrise Assisted Living 1,900
BRIDGE 1,812
American Retirement 1,400
Emeritus 604
ARV Assisted Living 403
</TABLE>
<TABLE>
<CAPTION>
DIFFERENCE FROM
AVERAGE UNITS PER ASSET(b) STABILIZED FACILITIES
-------------------------- ---------------------
<S> <C> <C>
BRIDGE 227 15
Capital Senior Living 139 (30)
ARV Assisted Living 134 10
Emeritus 101 10
American Retirement 100 (151)(c)
Sunrise Assisted Living 86 7
Alterra Healthcare 52 6
</TABLE>
---------
(a) Based on Form 10-Ks dated 12/31/99.
(b) For American Retirement and Alterra Healthcare, capacity is used instead of
number of units.
(c) Please note that American Retirement's new development is considerably
smaller as a result of its "hub and spokes" strategy.
[MERRILL LYNCH LOGO] 4
<PAGE> 11
INDUSTRY OPERATING REVIEW
Properties Under Construction and Development (cont'd)(a)
CONSTRUCTION AND DEVELOPMENT AS % OF TOTAL ASSETS
[CHART]
<TABLE>
<CAPTION>
ANNUAL AVERAGE
--------------------------------
1997 1998 1999
------ ------ ------
<S> <C> <C>
28% 26% 15%
</TABLE>
<TABLE>
<CAPTION>
PROPERTY 1997 1998 1999
-------- ------ ------ ------
<S> <C> <C> <C>
BRIDGE 28% 25% 26%
Alterra Healthcare 43% 37% 12%
Capital Senior Living 41% 47% 34%
American Retirement 31% 24% 9%
Emeritus 22% 17% 5%
Sunrise Assisted Living 20% 24% 14%
ARV Assisted Living 9% 10% 5%
</TABLE>
----------
(a) Represents units under development or construction as a percentage of total
stabilized units and units under development or construction. Capacity is
used instead of units for American Retirement and Alterra Healthcare.
[MERRILL LYNCH LOGO] 5
<PAGE> 12
INDUSTRY OPERATING REVIEW
Annual Occupancy for Stabilized Properties(a)
[CHART]
<TABLE>
<CAPTION>
ANNUAL AVERAGE
--------------------------------
1997 1998 1999
------ ------ ------
<S> <C> <C>
90% 91% 91%
</TABLE>
<TABLE>
<CAPTION>
PROPERTY 1997 1998 1999
-------- ------ ------ ------
<S> <C> <C> <C>
BRIDGE 96% 95% 95%
Capital Senior Living 96% 95% 94%
American Retirement 95% 93% 93%
Sunrise Assisted Living 94% 94% 96%
Alterra Healthcare(b) 94% 93% 92%
ARV Assisted Living 85% 84% 89%
Emeritus 72% 81% 82%
</TABLE>
----------
(a) Based on Form 10-Ks. Occupancy for stabilized assets. Please note that
companies may use different definitions of "occupancy".
(b) Based on Wall Street equity research.
[MERRILL LYNCH LOGO] 6
<PAGE> 13
INDUSTRY OPERATING REVIEW
Property Ownership Summary(a)
<TABLE>
<CAPTION>
BRIDGE ALTERRA HEALTHCARE(b) AMERICAN RETIREMENT(b) EMERITUS
------ --------------------- ---------------------- --------
<S> <C> <C> <C> <C>
[PIE CHART] [PIE CHART] [PIE CHART] [PIE CHART]
Owned 20% 30% 40% 13%
Leased 65% 43% 19% 28%
Managed 15% 2% 41% 54%
Joint Venture or Non Consolidated -- 25% -- 5%
</TABLE>
<TABLE>
<CAPTION>
SUNRISE ASSISTED
LIVING ARV ASSISTED LIVING CAPITAL SENIOR LIVING
---------------- ------------------- ---------------------
<S> <C> <C> <C>
[PIE CHART] [PIE CHART] [PIE CHART]
Owned 88% 21% 57%
Leased 12% 68% --
Managed -- 11% 43%
Joint Venture or Non Consolidated -- -- --
</TABLE>
----------
(a) Based on Form 10-Ks dated 12/31/99. Percentages are based on number of
units. Amounts include all owned, leased, managed, and unconsolidated joint
venture properties that are stabilized.
(b) For American Retirement and Alterra Healthcare, capacity is used instead of
number of units.
[MERRILL LYNCH LOGO] 7
<PAGE> 14
INDUSTRY OPERATING REVIEW
Margin Analysis
EBITDAR MARGIN
[BAR CHART]
<TABLE>
<CAPTION>
1997
------------
MEAN = 24.0%
------------
<S> <C>
BLCI 40.5%
ACR 30.1%
CSU 29.8%
ALI 25.0%
SNRZ 22.9%
ESC 20.5%
SRS 16.0%
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1998
------------
MEAN = 30.7%
------------
<S> <C>
CSU 44.7%
BLCI 42.3%
SNRZ 36.1%
ACR 34.5%
ALI 30.2%
SRS 20.6%
ESC 18.2%
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1999
------------
MEAN = 31.8%
------------
<S> <C>
CSU 47.3%
BLCI 45.2%
SNRZ 33.4%
ACR 31.0%
ALI 29.1%
SRS 26.5%
ESC 23.6%
</TABLE>
INCREASE IN EBITDAR MARGIN FROM 1997 TO 1999
[BAR CHART]
<TABLE>
<S> <C>
CSU 17.5%
SNRZ 10.5%
SRS 10.5%
BLCI 4.7%
ALI 4.1%
ESC 3.1%
ACR 0.9%
</TABLE>
----------
Note: Mean values exclude BRIDGE.
[MERRILL LYNCH LOGO] 8
<PAGE> 15
INDUSTRY OPERATING REVIEW
Margin Analysis (cont'd)
EBITDA MARGIN
[BAR CHART]
<TABLE>
<CAPTION>
1997
------------
MEAN = 11.7%
------------
<S> <C>
CSU 29.8%
ACR 26.4%
SNRZ 21.2%
BLCI 16.0%
ALI 5.5%
SRS(a)
ESC(a)
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1998
------------
MEAN = 18.3%
------------
<S> <C>
CSU 44.7%
SNRZ 34.3%
ACR 28.1%
BLCI 19.3%
ALI 12.1%
SRS(a)
ESC(a)
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1999
------------
MEAN = 19.7%
------------
<S> <C>
CSU 47.3%
SNRZ 30.2%
ACR 23.6%
BLCI 21.1%
ALI 10.6%
SRS 3.1%
ESC 3.1%
</TABLE>
INCREASE IN EBITDA MARGIN FROM 1997 TO 1999
[BAR CHART]
<TABLE>
<S> <C>
CSU 17.6%
ESC 12.0%
SNRZ 9.0%
SRS 7.0%
BLCI 5.1%
ALI(a) 5.1%
ACR (2.8)%
</TABLE>
----------
(a) Values are negative for the periods indicated but are included in the mean
calculations.
[MERRILL LYNCH LOGO] 9
<PAGE> 16
INDUSTRY OPERATING REVIEW
Margin Analysis (cont'd)
DEVELOPMENT FEES (% OF PRETAX INCOME)
[BAR CHART]
<TABLE>
<CAPTION>
1997
------------
MEAN = 2.4%
------------
<S> <C>
CSU 11.9%
SRS 0.0%
SNRZ 0.0%
ACR 0.0%
ALI 0.0%
BLCI NM
ESC NM
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1998
------------
MEAN = 22.0%
------------
<S> <C>
BLCI 55.0%
ACR 53.9%
CSU 44.9%
SNRZ 5.8%
ALI 5.3%
SRS 0.0%
ESC NM
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1999
------------
MEAN = 28.1%
------------
<S> <C>
CSU 63.4%
ACR 43.3%
BLCI 36.0%
SNRZ 25.3%
ALI 8.5%
SRS 0.0%
ESC NM
</TABLE>
MANAGEMENT FEES (% OF PRETAX INCOME)
[BAR CHART]
<TABLE>
<CAPTION>
1997
------------
MEAN = 52.0%
------------
<S> <C>
SNRZ 111.0%
ALI 74.6%
CSU 40.3%
ACR 34.0%
BLCI NM
ESC NM
SRS NM
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1998
------------
MEAN = 28.3%
------------
<S> <C>
SNRZ 75.2%
ALI 23.5%
ACR 23.1%
CSU 19.6%
BLCI 2.2%
ESC NM
SRS NM
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
1999
------------
MEAN = 61.4%
------------
<S> <C>
ALI 168.3%
SNRZ 85.9%
ACR 40.0%
CSU 12.9%
BLCI 2.7%
ESC NM
SRS NM
</TABLE>
----------
Note: Mean values exclude BRIDGE.
[MERRILL LYNCH LOGO] 10
<PAGE> 17
3
<PAGE> 18
PUBLIC MARKET PERSPECTIVE
<PAGE> 19
PUBLIC MARKET PERSPECTIVE
Two-Year Comparative Stock Price Performance
[CHART]
----------
(a) Public comparables composite includes BRIDGE, Alterra Healthcare,
American Retirement, ARV Assisted Living, Capital Senior Living, Emeritus and
Sunrise Assisted Living.
[MERRILL LYNCH LOGO] 11
<PAGE> 20
PUBLIC MARKET PERSPECTIVE
Public Market Capitalization Summary
(Dollars in Millions)
TOTAL EQUITY VALUE(a)
[GRAPH]
<TABLE>
<CAPTION>
SNRZ ACR BLCI ALI CSU ESC SRS
<S> <C> <C> <C> <C> <C> <C>
$383.6 $304.4 $130.5 $62.2 $49.3 $38.4 $20.7
</TABLE>
TOTAL MARKET CAPITALIZATION(b)
[GRAPH]
<TABLE>
<CAPTION>
SNRZ ALI ACR BLCI ESC CUS SRS
<S> <C> <C> <C> <C> <C> <C>
$1,084.8 $943.3 $606.2 $322.6 $222.8 $123.5 $116.0
</TABLE>
ADJUSTED MARKET CAPITALIZATION(c)
[GRAPH]
<TABLE>
<CAPTION>
ALI SNRZ ACR BLCI ESC SRS CSU
<S> <C> <C> <C> <C> <C> <C>
$1,591.2 $1,174.2 $719.1 $540.6 $413.0 $384.4 $123.5
</TABLE>
----------
(a) Based on shares prices as of May 15, 2000.
(b) Total market capitalization equals total equity value plus short-term debt,
long-term debt, minority interest and preferred stock less cash and cash
equivalents.
(c) Total market capitalization plus lease expenses for the first quarter of
2000 annualized and capped at 8.0x.
[MERRILL LYNCH LOGO] 12
<PAGE> 21
PUBLIC MARKET PERSPECTIVE
Assisted Living Industry Total Equity Value Analysis(a)
(Dollars in Billions)
<TABLE>
<CAPTION>
TOTAL INDUSTRY EQUITY VALUE TOTAL INDUSTRY PUBLIC FLOAT
--------------------------- ---------------------------
<S> <C> <C>
Jan-98 $3.1 $2.3
Feb-98 $3.1 $2.3
Mar-98 $3.2 $2.3
Apr-98 $3.0 $2.1
May-98 $2.4 $1.7
Jun-98 $2.3 $1.6
Jul-98 $2.5 $1.9
Aug-98 $2.2 $1.7
Sep-98 $1.8 $1.3
Oct-98 $2.2 $1.7
Nov-98 $2.7 $2.1
Dec-98 $2.6 $2.0
Jan-99 $2.7 $2.0
Feb-99 $2.1 $1.6
Mar-99 $2.1 $1.5
Apr-99 $2.0 $1.5
May-99 $1.9 $1.4
Jun-99 $1.8 $1.3
Jul-99 $1.7 $1.3
Aug-99 $1.5 $1.1
Sep-99 $1.4 $1.1
Oct-99 $0.9 $0.7
Nov-99 $1.0 $0.8
Dec-99 $0.9 $0.7
Jan-00 $0.9 $0.7
Feb-00 $0.9 $0.6
Mar-00 $0.8 $0.6
Apr-00 $0.9 $0.7
May-00 $1.0 $0.7
</TABLE>
<TABLE>
<CAPTION>
1999 INSIDER OWNERSHIP(b)
-------------------------
<S> <C>
BLCI 40.7%
SRS 50.5%
ESC 43.1%
ACR 31.7%
CSU 26.2%
ALI 17.3%
SNRZ 14.2%
</TABLE>
----------
(a) Includes BRIDGE, Alterra Healthcare, American Retirement, ARV Assisted
Living, Capital Senior Living, Emeritus and Sunrise Assisted Living.
(b) Insider holdings based on proxy.
[MERRILL LYNCH LOGO] 13
<PAGE> 22
PUBLIC MARKET PERSPECTIVE
Public Comparables Analysis
<TABLE>
<CAPTION>
2000E P/E MULTIPLE
SNRZ(b) ACR BLCI CSU ALI ESC SRS
----- ----- ----- ---- --- --- ---
<S> <C> <C> <C> <C> <C> <C>
40.2x 22.8x 11.3x 8.6x NM NM NM
</TABLE>
MEAN(a) = 15.8x
<TABLE>
<CAPTION>
2001E P/E MULTIPLE
SNRZ ACR SRS BLCI CSU ALI ESC
---- ----- ---- ---- ---- --- ---
<S> <C> <C> <C> <C> <C> <C>
23.3x 21.4x 9.9x 9.5x 7.1x NM NM
</TABLE>
MEAN(a) = 15.4x
<TABLE>
<CAPTION>
2000E EBITDAR MULTIPLE
ALI SNRZ ACR ESC BLCI CSU SRS
----- ----- ----- ---- ---- ---- ---
<S> <C> <C> <C> <C> <C> <C>
12.6x 11.9x 10.7x 9.9x 9.8x 4.6x NA
</TABLE>
MEAN(a) = 9.9x
<TABLE>
<CAPTION>
2000E EBITDA MULTIPLE
ALI(b) ESC SNRZ ACR BLCI CSU SRS
----- ----- ----- ----- ----- ---- ---
<S> <C> <C> <C> <C> <C> <C>
30.8x 12.8x 12.6x 12.0x 11.9x 4.6x NA
</TABLE>
MEAN(a) = 10.5x
Note: Stock prices as of May 15, 2000. EPS estimates based on First Call
Consensus. EBITDAR and EBITDA projections based on Wall Street equity
research.
(a) Mean excludes BRIDGE.
(b) Excluded from mean.
[MERRILL LYNCH LOGO]
14
<PAGE> 23
PUBLIC MARKET PERSPECTIVE
Wall Street Earnings Estimates Progression(a)
[CHART] [CHART] [CHART] [CHART]
[CHART] [CHART] [CHART]
----------
(a) Graphs show earnings per share estimates based on First Call consensus on a
monthly basis from January 1998 to April 2000. Final month for FY 1998 and
FY 1999 is actual EPS.
[MERRILL LYNCH LOGO] 15
<PAGE> 24
PUBLIC MARKET PERSPECTIVE
Assisted Living Industry Forward EBITDAR Multiple Analysis(a)
[CHART]
----------
Note: Forward EBITDAR multiple calculated based on dividing the company's
relevant total market capitalization by the company's EBITDAR projection for
the following year (i.e., for March 1998, the value displayed reflects the
company's multiple to 1999E EBITDAR).
(a) Boxes above line graphs represent mean multiple, excluding BRIDGE.
[MERRILL LYNCH LOGO] 16
<PAGE> 25
PUBLIC MARKET PERSPECTIVE
Assisted Living Industry Forward EBITDA Multiple Analysis(a)
[CHART]
----------
Note: Forward EBITDA multiple calculated based on dividing the company's
relevant total market capitalization by the company's EBITDA
projection for the following year (i.e., for March 1998, the value
displayed reflects the company's multiple to 1999E EBITDA).
(a) Boxes above line graphs represent mean multiple, excluding BRIDGE and
outliers.
[MERRILL LYNCH LOGO] 17
<PAGE> 26
PUBLIC MARKET PERSPECTIVE
Assisted Living Industry Forward P/E Multiple Analysis(a)
[CHART]
----------
Note: Forward P/E multiple calculated based on dividing the company's relevant
stock price by the company's EPS estimate for the following year (i.e.,
for March 1998, the value displayed reflects the company's multiple to
1999E EPS).
(a) Boxes above line graphs represent mean multiple, excluding BRIDGE and
outliers.
[MERRILL LYNCH LOGO] 18
<PAGE> 27
PUBLIC MARKET PERSPECTIVE
Assisted Living Industry Forward P/E/G to 5-Year EPS Growth Rate Analysis(a)
[CHART]
----------
Note: Forward PEG calculated based on dividing the company's relevant forward
P/E multiple by the company's 5-year EPS growth projection.
(a) Boxes above line graphs represent mean multiple, excluding BRIDGE.
[MERRILL LYNCH LOGO] 19
<PAGE> 28
4
<PAGE> 29
REVIEW OF BRIDGE
<PAGE> 30
REVIEW OF BRIDGE
Acquisition Pricing Matrix
(Dollars in Million, Except per Share Amounts)
<TABLE>
<CAPTION>
PREMIUM TO:
-------------------- INCREMENTAL ADJUSTED
OFFER CURRENT BEFORE EQUITY COST TO MARKET MARKET
PRICE PRICE OFFER(a) VALUE(b) FORTRESS CAP.(c) CAP.(d)
------ ------- -------- -------- ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
$15.00 12.1% 39.5% $147.8 $88.7 $349.8 $567.8
15.50 15.9% 44.2% 153.0 91.8 355.1 573.0
16.00 19.6% 48.8% 158.3 95.0 360.4 578.4
16.50 23.4% 53.5% 163.7 98.2 365.8 583.8
17.00 27.1% 58.1% 169.1 101.5 371.2 589.2
17.50 30.8% 62.8% 174.5 104.7 376.6 594.5
18.00 34.6% 67.4% 179.8 107.9 381.9 599.9
DATA $13.38 $10.75
<CAPTION>
MARKET CAPITALIZATION AS MULTIPLE OF: OFFER PRICE
-------------------------------------------- AS MULTIPLE OF:
EBITDAR EBITDA ------------------
OFFER ------------------- -------------------- 2000E 2001E
PRICE LTM 2000E(e) LTM 2000E(e) EPS(d) EPS(d)
------ ----- -------- ----- -------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
$15.00 11.5x 10.2x 15.1x 12.6x 13.0x 9.0x
15.50 11.6 10.2 15.3 12.8 13.5 9.3
16.00 11.8 10.3 15.6 12.9 13.9 9.6
16.50 11.9 10.4 15.8 13.1 14.3 9.9
17.00 12.0 10.5 16.0 13.3 14.8 10.2
17.50 12.1 10.6 16.3 13.5 15.2 10.5
18.00 12.2 10.7 16.5 13.7 15.7 10.8
DATA $49.2 $55.9 $23.1 $27.8 $1.15 $1.66
</TABLE>
----------
(a) Based on BRIDGE closing price on April 19, 2000.
(b) Based on 9.9 million common shares and 0.9 million options with a weighted
average exercise price of $15.19 treated under the treasury share method.
(c) Includes cash of $6.9 million, short-term debt of $0.1 million, long-term
debt of $98.9 million and convertible debt of $100.0 million repurchased
at 110.0% of face value, or $110.0 million.
(d) Includes lease expense of $27.2 million capped at 8.0x, or $218.0 million.
(e) Based on projections provided by BRIDGE management, which are generally
in-line with Wall Street equity research estimates. Merrill Lynch equity
research has 2000E EBITDAR and EBITDA estimates of $55.3 million and $27.1
million, respectively. First Call consensus EPS estimates for 2000 and
2001 are $1.17 and $1.40, respectively.
[MERRILL LYNCH LOGO] 20
<PAGE> 31
REVIEW OF BRIDGE
BRIDGE One-Year Stock Price Performance
<TABLE>
<CAPTION>
SUMMARY DATA
------------
HIGH LOW MEAN
---- --- ----
<S> <C> <C> <C>
30 Trading Days $13.38 $10.63 $11.95
3 Months 13.50 10.63 12.24
6 Months 14.44 10.63 12.65
Prior to Offer 15.56 10.63 13.12
1 Year 15.56 10.63 13.09
</TABLE>
April 20, 2000:
BRIDGE announces that The Prime Group and certain of its affiliates have agreed
to sell 3.9 million shares of common stock to Fortress for $15.00 per share.
BRIDGE stock price climbs from $11.50 on April 20th to $13.25 on April 24th.
[CHART]
[MERRILL LYNCH LOGO] 21
<PAGE> 32
REVIEW OF BRIDGE
Cost Basis of Top Institutional Shareholders
<TABLE>
<CAPTION>
Current Estimated
Holdings (a) Cost
(in 000's) Basis (b)
------------ ---------
<S> <C> <C>
Goldman Sachs 900.9 $ 14.63
Becker Capital Management 810.7 15.52
Dimensional Fund Advisors 489.9 15.42
First Union 489.3 14.57
AXE-Houghton Associates 283.5 13.31
-------
Total Shares of Top 5 13-f Institutional Shareholders 2,974.3
Percentage of Total Common Shares(c) 31.4%
</TABLE>
----------
Note: During the first quarter of 2000, Delaware Capital Management sold
approximately 900,000 shares of BRIDGE common stock for less than $11.00 per
share, according to BRIDGE management. Management stated that the primary
purchasers of Delaware's shares were K Capital and Goldman Sachs. This purchase
has not been reflected in the figures above. In addition, the Commonwealth of
Pennsylvania Public School Employees Retirement System owns an additional
629,600 shares.
(a) Based on most recent available public filings.
(b) Assumes that shares are purchased at the average share price during the
three-month period in which the shares were acquired. Assumes that shares
are sold at the average cost basis at the time of sale.
(c) Based on 9.475 million common shares outstanding per Form 10-Q dated
March 31, 2000.
[MERRILL LYNCH LOGO] 22
<PAGE> 33
REVIEW OF BRIDGE
Three-Year Trading Volume Analysis
PERCENT OF VOLUME WHICH TRADED IN STOCK PRICE RANGE
[CHART]
<TABLE>
<CAPTION>
SHARES TRADED PRICE PER SHARE PERCENT
------------- --------------- -------
<S> <C> <C>
$10.00-$11.00 57.9%
$11.00-$12.00 7.9%
$12.00-$13.00 20.3%
$13.00-$14.00 13.9%
</TABLE>
PERCENT OF VOLUME WHICH TRADED BELOW STOCK PRICE RANGE
[CHART]
<TABLE>
<CAPTION>
CUMULATIVE
SHARES TRADED PRICE PER SHARE PERCENT
------------- --------------- -------
<S> <C> <C>
$11.00 57.9%
$12.00 65.8%
$13.00 86.1%
$14.00 100.0%
</TABLE>
----------
Note: Volume traded based on daily closing stock prices.
[MERRILL LYNCH LOGO] 23
<PAGE> 34
REVIEW OF BRIDGE
One-Year Trading Volume Analysis
PERCENT OF VOLUME WHICH TRADED IN STOCK PRICE RANGE
[CHART]
<TABLE>
<CAPTION>
SHARES TRADED PRICE PER SHARE PERCENT
------------- --------------- -------
<S> <C> <C>
$10.00-$11.00 14.3%
$11.00-$12.00 9.2%
$12.00-$13.00 27.5%
$13.00-$14.00 27.3%
$14.00-$15.00 21.1%
$15.00-$16.00 0.6%
</TABLE>
PERCENT OF VOLUME WHICH TRADED BELOW STOCK PRICE RANGE
[CHART]
<TABLE>
<CAPTION>
CUMULATIVE
SHARES TRADED PRICE PER SHARE PERCENT
------------- --------------- -------
<S> <C> <C>
$11.00 14.3%
$12.00 23.6%
$13.00 51.0%
$14.00 78.3%
$15.00 99.4%
$16.00 100.0%
</TABLE>
----------
Note: Volume traded based on daily closing stock prices.
[MERRILL LYNCH LOGO] 24
<PAGE> 35
REVIEW OF BRIDGE
Trading Volume Analysis Since IPO
PERCENT OF VOLUME WHICH TRADED IN STOCK PRICE RANGE
[CHART]
<TABLE>
<CAPTION>
SHARES TRADED PRICE PER SHARE PERCENT
------------- --------------- -------
<S> <C> <C>
$10.00-$13.00 28.4%
$13.00-$16.00 30.8%
$16.00-$19.00 23.6%
$19.00-$22.00 8.1%
$22.00-$25.00 4.4%
$25.00-$28.00 3.4%
$28.00-$30.00 1.2%
</TABLE>
PERCENT OF VOLUME WHICH TRADED BELOW STOCK PRICE RANGE
[CHART]
<TABLE>
<CAPTION>
CUMULATIVE
SHARES TRADED PRICE PER SHARE PERCENT
------------- --------------- -------
<S> <C> <C>
$13.00 28.4%
$16.00 59.2%
$19.00 82.8%
$22.00 90.9%
$25.00 95.4%
$28.00 98.8%
$30.00 100.0%
</TABLE>
----------
Note: Volume traded based on daily closing stock prices.
[MERRILL LYNCH LOGO] 25
