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SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
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[X] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
ERLY INDUSTRIES INC.
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(Name of Registrant as Specified In Its Charter)
THE POWELL GROUP
FARMERS RICE MILLING COMPANY, INC.
NANETTE N. KELLEY
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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FOR IMMEDIATE RELEASE
COMPANY CONTACT:
[LOGO OF THE POWELL GROUP]
Nanette Kelley
President
(504) 922-4540
POWELL GROUP SUBSIDIARY FILES PETITION
COMPEL INSPECTION OF ACCOUNTING RECORDS
OF ERLY INDUSTRIES INC. (NASDAQ)
BATON ROUGE, LOUISIANA, AUGUST 20, 1997...Farmers Rice
Milling Company, a wholly-owned subsidiary of The Powell Group, and The Powell
Group President Nanette N. Kelley, who together own approximately 3.8% of the
common shares of ERLY INDUSTRIES INC. (NASDAQ:ERLY), Los Angeles, announced
today that they have filed a petition in Superior Court in the County of Los
Angeles seeking a Writ of Mandate to compel inspection of ERLY's accounting
books and records.
Kelley said that on July 30, 1997, she and Farmers Rice Milling made a
written demand on ERLY to make its accounting books and records available for
inspection as provided by California law, and that ERLY has failed and refused
to provide this information.
"ERLY must respond to our demand. We will not go away," said Nanette
Kelley, president of The Powell Group.
On July 25, 1997, Kelley and The Powell Group Companies filed a Consent
Solicitation with the Securities and Exchange Commission seeking approval, among
other things, to solicit ERLY shareholders with respect to removing the current
board of directors. Separately, Farmers Rice Milling recently filed a lawsuit in
Federal Court against Gerald Murphy, chairman and chief operating officer of
ERLY, and Douglas Murphy, chief operating officer and a director of ERLY,
alleging, among other things, breach of fiduciary duty and waste of corporate
assets in connection with litigation arising from the defendants' personal
investment in a real estate development project in Texas.
A privately-held holding company based in Baton Rouge, Louisiana, The
Powell Group has interests in rice farming, rice milling and storage, rice
hull-to-electricity generation, radio broadcasting, commercial and residential
real estate development and construction, travel management services and timber.
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