<PAGE>
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SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [ ]
Filed by a Party other than the Registrant [X]
Check the appropriate box:
[_] Preliminary Proxy Statement [_] Confidential, for Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
[_] Definitive Proxy Statement
[_] Definitive Additional Materials
[X] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
ERLY INDUSTRIES INC.
- --------------------------------------------------------------------------------
(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)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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[_] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
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<PAGE>
ERLY INDUSTRIES, INC.
A BRIGHTER FUTURE
PRESENTED BY THE POWELL GROUP
<PAGE>
Ten Year History of Performance
[Chart of percentage increase of ERLY Industries Inc. Common Stock per share
from 1987 - 1997 v. S&P Foods and S&P 500 appears here]
<TABLE>
<CAPTION>
Percent Increase (%)
--------------------
<S> <C>
ERLY 26.5
S&P 500 173
S&P Food 244
</TABLE>
Percent Increase in 10 Years
<PAGE>
ERLY INDUSTRIES, INC.
4 YEAR RETURN WITH AVERAGE
AVERAGE = $887,500
[Chart of ERLY Industries Inc. sales v. earnings appears here]
<TABLE>
<CAPTION>
YEAR Sales ($) EARNINGS ($)
---- ----------- ------------
<S> <C> <C>
1993 301,644,000 (5,483,000)
1994 334,824,000 907,000
1995 459,599,000 9,275,000
1996 486,626,000 (1,149,000)
Average 1993-1996 439,398,600 2,180,400
</TABLE>
<PAGE>
COMPELLING REASONS FOR A NEW
BOARD OF DIRECTORS
. Performance in Shareholder Value
. No dividends in Company History
. Insider Self-Dealing
. Poor Performance
. Earnings History Unimpressive
. De-Listed from NASDAQ in 1994
. Defaulted on Loans in 1993 after losing in 3 businesses
. Qualified Audits 3 of the last 4 years
. Denying Shareholder Rights
<PAGE>
THREE BIG OPPORTUNITIES!
THE POWELL GROUP PLAN
. CASH
. Improve profitability
. Improve ERLY's relationships with suppliers to reduce supply cost
. Reduce overhead costs
<PAGE>
ANNUAL PROFIT
ERLY V. FARMERS RICE MILLING COMPANY
[Graph of ERLY Industries Inc. profits v. Farmers Rice Milling Company Inc.
profits appears here]
<TABLE>
<CAPTION>
YEAR ERLY (%) FARMERS RICE (%)
---- -------- ----------------
<S> <C> <C>
1993 -1.82 9.55
1994 0.27 6.86
1995 2.02 6.99
1996 -0.24 4.14
1997 0.06 6.88
</TABLE>
<PAGE>
THREE BIG OPPORTUNITIES!
THE POWELL GROUP PLAN
. CASH
. CAPITAL
. Begin building Shareholders' Equity
. Reduce the cost of borrowed funds
. Enter strategic new markets with food products
. Acquire diversified strategic assets
. Pay dividends
<PAGE>
AVERAGE EARNINGS LESS THAN 1% OF SALES
[Chart of ERLY Industries Inc. sales v. earnings appears here]
<TABLE>
<CAPTION>
YEAR SALES ($) EARNINGS ($)
---- ----------- ------------
<S> <C> <C>
1993 301,644,000 (5,483,000)
1994 334,824,000 907,000
1995 459,599,000 9,275,000
1996 486,626,000 (1,149,000)
Average 1993-1996 439,398,600 2,180,400
</TABLE>
<PAGE>
THREE BIG OPPORTUNITIES!
THE POWELL GROUP PLAN
. CASH
. CAPITAL
. CONFIDENCE
. Restore confidence with the financial community
. Restore confidence with shareholders
<PAGE>
THE POWELL GROUP PROPOSED
BOARD OF DIRECTORS
. Bill Blake
. Gene Cafiero
. Pete Seale
. John Spain
. Nanette Kelley
