<PAGE> 1
SCHEDULE 13E-3/A
(Rule l3e-1)
Transaction Statement Pursuant to Section 13(e) of the Securities
Exchange Act of 1934 and Rule 13e-3 Thereunder
(Amendment No. 10)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Rule 13e-3 Transaction Statement
(Pursuant to Section 13(e)
of the Securities Exchange Act of 1934)
HERBALIFE INTERNATIONAL, INC.
(Name of Issuer)
HERBALIFE INTERNATIONAL, INC.
MARK HUGHES
MH MILLENNIUM HOLDINGS LLC
MH MILLENNIUM ACQUISITION CORP.
(Name of Persons Filing statement)
CLASS A COMMON STOCK, PAR VALUE $.01 PER SHARE
CLASS B COMMON STOCK, PAR VALUE $.01 PER SHARE
(Title of Classes of Securities)
---------
426908208 (CLASS A)
426908307 (CLASS B)
(CUSIP Number of Classes of Securities)
-----------
Herbalife International, Inc.
1800 Century Park East
Los Angeles, California 90067
Tel: (310) 410-9600
Attn. Robert A. Sandler, Esq.
(Name, Address and Telephone Number of Persons Authorized to Receive
Notices and Communications on Behalf of Persons Filing Statement)
Copies to:
Anthony T. Iler, Esq.
Irell & Manella LLP
333 South Hope Street, Suite 3300
Los Angeles, California 90071
(213) 620-1555
------------------
------------------
<PAGE> 2
The filers hereby amend and supplement their Schedule 13e-3, filed
September 17, 1999 (as amended, the "Schedule 13e-3"), as set forth in this
Amendment No. 10. Capitalized terms used but not defined herein have the
meanings assigned to them in the Tender Offer Statement on Schedule 14D-1 of
MH Millennium Holdings LLC and its wholly owned subsidiary MH Millennium
Acquisition Corp. filed with the SEC on September 17, 1999, as amended and as
supplemented by the Second Supplement to Offer to Purchase, dated February 4,
2000 (the "Second Supplement").
ITEM 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS.
The response to Item 3(b) of the Schedule 13E-3 is supplemented as
follows: The information set forth under "ADDITIONAL INFORMATION - SPECIAL
FACTORS - BACKGROUND OF THE OFFER AND THE MERGER" in the Second Supplement is
hereby incorporated by reference.
ITEM 8. FAIRNESS OF THE TRANSACTION.
The response to Item 8(b) of the Schedule 13E-3 is supplemented as
follows: The information set forth under "ADDITIONAL INFORMATION - SPECIAL
FACTORS - UPDATED OPINION OF THE FINANCIAL ADVISOR TO THE SPECIAL COMMITTEE"
in the Second Supplement is hereby incorporated by reference.
ITEM 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS.
The response to Items 9(a) through (c) of the Schedule 13E-3 is
supplemented as follows: The information set forth under "ADDITIONAL INFORMATION
- - SPECIAL FACTORS - UPDATED OPINION OF THE FINANCIAL ADVISOR TO THE SPECIAL
COMMITTEE" in the Second Supplement is hereby incorporated by reference.
ITEM 16. ADDITIONAL INFORMATION.
The response to Item 16 of the Schedule 13E-3 is supplemented as
follows: The information set forth in the First Supplement, a copy of which is
attached as Exhibit (d)(12) to this Amendment No. 10, is hereby incorporated by
reference.
ITEM 17. MATERIAL TO BE FILED AS EXHIBITS:
Item 17 of the Schedule 13E-3 is supplemented by adding the following
information thereto:
(b)(3) Updated opinion from Bear, Stearns & Co. Inc., dated as of
January 23, 2000 (included as Annex A to Exhibit (d)(12)).
(b)(4) Presentation materials prepared by Bear, Stearns & Co. Inc. presented
to the Special Committee of the Board of Directors of the Company on
January 24, 2000.
(d)(12) Second Supplement to Offer to Purchase, dated as of February 4,
2000 (incorporated herein by reference to Exhibit (a)(18) of amendment
number 12 to Schedule 14D-1).
(h)(3) First Supplement to the Definitive Information Statement filed on
Schedule 14C by Herbalife International, Inc., on February 4, 2000.
<PAGE> 3
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this Statement is true, complete and correct.
February 4, 2000 HERBALIFE INTERNATIONAL, INC.
By: /s/ TIMOTHY GERRITY
-----------------------------------------
Name: Timothy Gerrity
Title: Chief Financial Officer
MARK HUGHES
By: /s/ MARK HUGHES
-----------------------------------------
Name: Mark Hughes
MH MILLENNIUM HOLDINGS LLC
By: /s/ MARK HUGHES
-----------------------------------------
Name: Mark Hughes
Title: Managing Member
MH MILLENNIUM ACQUISITION CORP.
By: /s/ MARK HUGHES
-----------------------------------------
Name: Mark Hughes
Title: President
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
(b)(3) Updated opinion from Bear Stearns, dated as of January
23, 2000 (included as Annex A to Exhibit (d)(12)).
(b)(4) Presentation materials prepared by Bear, Stearns & Co. Inc. presented
to the Special Committee of the Board of Directors of the Company on
January 24, 2000.
(d)(12) Second Supplement to Offer to Purchase, dated as of February 4,
2000 (incorporated herein by reference to Exhibit (a)(18) of
amendment number 12 to Schedule 14D-1).
(h)(3) First Supplement to the Definitive Information Statement filed on
Schedule 14C by Herbalife International, Inc., on February 4, 2000.
</TABLE>
<PAGE> 1
EXHIBIT (b)(4)
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PRESENTATION TO THE SPECIAL COMMITTEE OF
THE BOARD OF DIRECTORS OF SAGE REGARDING
PROJECT SAGE
JANUARY 24, 2000
<PAGE> 2
TABLE OF CONTENTS
<PAGE> 3
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
TABLE OF CONTENTS
SECTION
1 Review of Proposed Transaction
2 Sage Financial Review
3 Overview of Sage Stock
4 Financial Analysis
A Transaction Multiples and Premia
B Discounted Cash Flow Analysis
C Comparable Company Analysis
D Public Shareholder Valuation
E Precedent M&A Transactions
F Indicative Third Party LBO Analysis
APPENDICES
A Historical and Projected Financial Statements
B Country-Specific Historical and Projected Retail Sales
C Valuation Multiples Over Time for Comparable Companies
<PAGE> 4
1
<PAGE> 5
[BEAR STEARNS LETTERHEAD]
SECTION 1
REVIEW OF PROPOSED TRANSACTION
<PAGE> 6
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SUMMARY OF KEY TERMS OF THE PROPOSED TRANSACTION
PUBLIC STOCKHOLDERS
- - Each share of Class A and Class B Common Stock held by non-insiders will
receive $17.00 per share plus $0.81 per share as per the shareholder
litigation settlement for a total consideration of $17.81 per share in
cash(1)
O Class A and Class B contractually required in Charter to get the
same consideration in a merger transaction
O Quarterly dividends of $0.15 will continue to be paid, plus a pro
rata stub dividend
- - Transaction will require a minimum tender of a "majority of the minority"
of the outstanding shares of each of the Class A and Class B common stock
o Negotiated as part of transaction; not required under Charter or
Nevada law
- - Dissenters will be entitled to appraisal rights
O Original cap at 3% of outstanding shares raised to 5% as per
shareholder litigation settlement
O Negotiated as part of transaction; not required under Charter or
Nevada law
- -------------
(1) On a primary share basis, Mark Hughes owns approximately 56% of Class A
shares and 60% of Class B shares.
1
<PAGE> 7
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SUMMARY OF KEY TERMS OF THE PROPOSED TRANSACTION (CONT.)
MANAGEMENT
- - All outstanding stock options, other than those held by Mark Hughes and
his affiliates, will become immediately vested
- - Each stock option (other than those held by Mark Hughes and his
affiliates) will be cashed out at closing at a price equal to the excess
of $17.00 over the applicable exercise price of the option(1)
o Mark Hughes' and his affiliates' options will be cancelled
- - Management may receive new options to buy approximately 16.5% of the
post-transaction company
MARK HUGHES
- - Will own 100% of Company immediately following the transaction, subject to
management options
- - The Company will make two loans to an entity controlled by Mark Hughes
o $93.3 million loan so that Hughes may make payments required to
retire the Class B shares of Sage held in the DECS trust
o $125 million loan to Mark Hughes
o Such loans would be forgiven under certain circumstances
o The loans would effectively serve as collateral for creditors for at
least 3 years
- ------------
(1) With the exception of options held by Suzanne Pair, whose options will
be cashed out at a price of $17.81 per share over the applicable
exercise price.
2
<PAGE> 8
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
TRANSACTION VALUE BUILDUP
<TABLE>
<CAPTION>
TRANSACTION VALUE ($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
=============================================================================================
<S> <C> <C> <C>
CLASS A CLASS B
------- -------
Price per Share $ 17.81 $ 17.81
Shares Outstanding(1) 10.002 18.629
------- -------
$ 178.1 $ 331.8
Value of Primary Shares $ 509.9
Value of Options, Net of Exercise Proceeds(2) 80.7
-------
Total Common Equity Value $ 590.6
Plus: Debt(3) 7.2
Plus: Minority Interest(3) 2.3
Less: Cash(3) (119.1)
-------
Total Enterprise Value $ 481.0
=======
- ---------------------------------------------------------------------------------------------
</TABLE>
- ------------
(1) In millions, as per form 10-Q dated September 30, 1999.
(2) Based on 1,339,784 Class A and 4,258,663 Class B management options
outstanding at average exercise prices of $7.77 and $6.67,
respectively; and 875,001 Class A and 999,999 Class B Mark Hughes'
options outstanding at average exercise prices of $8.00 and $6.63,
respectively. For the purpose of calculating equity value of the
Transaction in this book, it is assumed that all outstanding options
are cashed out at a price equal to the excess of $17.81 over the
applicable exercise price of the option.
(3) As of September 30, 1999 per Sage report on form 10-Q of same date.
3
<PAGE> 9
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SOURCES AND USES OF FUNDS(1)
<TABLE>
<CAPTION>
($ IN MILLIONS)
==========================================================================================================
SOURCES USES
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Credit facility $125.0 Purchase of common stock held by Public(2) $211.8
Subordinated notes 340.0 Purchase of common stock held by Foundation 9.8
Excess cash on balance sheet 59.8 Settlement of outstanding stock options 56.4
Loan to Mark Hughes (DECS Trust) 93.3
Loan to Mark Hughes 125.0
Fees & expenses(3) 28.5
------ ------
Total $524.8 Total $524.8
====== ======
- ----------------------------------------------------------------------------------------------------------
</TABLE>
- --------------
(1) Based on the draft Offering Memorandum under SEC Rule 144A for Sage
senior subordinated notes being issued to consummate the Transaction.
(2) Includes $0.7 million for 40,754 shares owned by insiders other than
Mark Hughes.
(3) Includes $8.5 million of plaintiff legal fees to settle litigation.
4
<PAGE> 10
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
POST-DEAL STRUCTURE AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
($ IN MILLIONS)
================================================================================================================
PRE-DEAL POST-DEAL(1)
<S> <C> <C> <C>
Cash $119.1 $ 59.3
====== =======
CAPITAL STRUCTURE
Debt
Revolver/Bank Debt $ - $ 125.0
Senior Subordinated Notes - 340.0
Existing Debt/Capitalized leases 7.2 7.2
------ -------
Total Debt $7.2 $ 472.2
Minority Interest 2.3 2.3
Shareholder's Equity 190.4 (142.5)
------ -------
Total Capitalization $199.9 $ 332.0
====== =======
Debt/Total Capital 3.6% 142.2%
PRO FORMA CREDIT STATISTICS
Net Debt/EBITDA NET DEBT ADJUSTED NET DEBT(2)
- LTM NM 4.1x 2.9x
- 1999E NM 3.9x 2.7x
EBITDA/Cash Interest Expense(3)
- LTM NM 2.9x
- 1999E NM 3.1x
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------
(1) Based on draft Offering Memorandum under SEC Rule 144A for Sage senior
subordinated notes being issued to consummate the Transaction.
(2) Reflects reduction of debt from $125 million of proceeds from loan
collateral.
(3) Excludes deferred financing costs, but includes the benefit of Cross
Currency Swap.
Excluding the benefit of Cross Currency Swap, pro forma EBITDA/Cash
Interest
Expense would be 1.9x and 2.0x for LTM and 1999E, respectively.
5
<PAGE> 11
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
ILLUSTRATIVE TRANSACTION TIMING
<TABLE>
<CAPTION>
EVENT ESTIMATED DATE DAYS
- ----------------------------------------------------------- ---------------- -----
<S> <C> <C>
Announcement of Transaction 9/13/99 (actual) T
Launch tender offer, file Schedules 13E-3, 14D-1, 14D-9 and 9/17/99 (actual) T+4
preliminary 14C with the SEC
Commence roadshow for high yield debt offering(1) 1/24/00 T+134
Earliest expiration date for tender offer(1) 1/28/00 T+138
Court approval of Settlement 2/9/00 T+150
Closing of bank and high yield financing(1) 2/14/00 T+155
Closing of Transaction 2/15/00 T+156
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
- - Note that the merger agreement provides for extensions of the tender
period in order to gain additional time to raise the required financing
- - Such extensions would in no event be later than March 31, 2000
- --------------
(1) Current estimate based on discussions with Sage Management and DLJ on
January 18, 2000.
6
<PAGE> 12
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
CONDITIONS TO CLOSING
- - Tender of a "majority of the minority" of the outstanding shares of each
of Class A and Class B common stock
- - Receipt of financing to close transaction and fund loans
o DLJ issued a "highly confident" letter for the financing
o The Company expects to begin the road show for high yield debt
financing on or about January 24, 2000
- - Accuracy of representations and warranties
- - Receipt of customary regulatory/government approvals
- - No more than 5% of outstanding shares having perfected dissenters' rights
7
<PAGE> 13
2
<PAGE> 14
[BEAR STEARNS LETTERHEAD]
SECTION 2
SAGE FINANCIAL REVIEW
<PAGE> 15
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
HISTORICAL FINANCIAL RESULTS(1)
<TABLE>
<CAPTION>
NET SALES GROWTH EBITDA GROWTH
($ IN MILLIONS) RATE ($ IN MILLIONS) RATE
============================== =================================
<S> <C> <C> <C> <C> <C>
1994 $466.9 1994 $74.2
1995 $489.0 4.7% 1995(2) $38.6 (48.00%)
1996 $631.9 29.2% 1996 $79.3 105.00%
1997 $782.5 23.8% 1997 $97.0 22.30%
1998 $866.6 10.7% 1998 $94.2 (2.90%)
</TABLE>
<TABLE>
<CAPTION>
EBIT GROWTH GROWTH
($ IN MILLIONS) RATE EPS RATE
================================ =================================
<S> <C> <C> <C> <C> <C>
1994 $70.7 1994 $1.50
1995(2) $30.5 (56.90%) 1995(2) $0.70 (53.6%)
1996 $68.7 125.00% 1996 $1.43 105.4%
1997 $86.0 25.20% 1997 $1.72 20.3%
1998 $78.4 (8.80%) 1998 $1.60 (7.0%)
</TABLE>
- --------------
(1) Source: Sage Management report, Sage report on form 10-K dated December
31, 1998.
(2) Adjusted for non-recurring pre-tax charge of $2.3 million in 1995.
8
<PAGE> 16
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
HISTORICAL FINANCIAL RESULTS--RECENT QUARTERS(1)
<TABLE>
<CAPTION>
NET SALES ($ IN MILLIONS)
=========================
1997 1998 1999
----------------------------------- ----------------------------------- -------------------------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 170 $ 185 $ 207 $ 220 $ 210 $ 210 $ 213 $ 234 $ 226 $ 226 $ 239
GROWTH RATE 23.4% 13.5% 2.8% 6.1% 8.0% 7.8% 12.1%
</TABLE>
<TABLE>
<CAPTION>
EBITDA ($ IN MILLIONS)
=========================
1997 1998 1999
----------------------------------- ----------------------------------- -------------------------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 21 $ 24 $ 25 $ 28 $ 27 $ 28 $ 15 $ 25 $ 23 $ 23 $ 29
GROWTH RATE 29.00% 16.00% (39.80%) (9.70%) (13.50%) (17.00%) 93.30%
</TABLE>
<TABLE>
<CAPTION>
EBIT ($ IN MILLIONS)
=========================
1997 1998 1999
----------------------------------- ----------------------------------- -------------------------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 19 $ 21 $ 22 $ 24 $ 24 $ 25 $ 12 $ 19 $ 19 $ 20 $ 26
GROWTH RATE 28.00% 14.50% (45.40%) (23.10%) (19.80%) (19.60%) 116.70%
</TABLE>
<TABLE>
<CAPTION>
EPS ($ IN MILLIONS)
=========================
1997 1998 1999
------------------------------------ ------------------------------------ --------------------------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0.38 $ 0.44 $ 0.45 $ 0.45 $ 0.48 $ 0.50 $ 0.24 $ 0.38 $ 0.38 $ 0.40 $ 0.51
GROWTH RATE 26.3% 13.6% (46.7)% (15.6)% (20.8)% (20.0)% 112.5%
</TABLE>
- -------------
(1) Source: Company public documents.
9
<PAGE> 17
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
REVIEW OF FINANCIAL PERFORMANCE RELATIVE TO BUDGET(1)
<TABLE>
<CAPTION>
BUDGET VS. ACTUAL BUDGET VS. ACTUAL
NET SALES ($ IN MILLIONS) EBITDA ($ IN MILLIONS)
========================= ======================
<S> <C> <C> <C>
1997 $727 1997 $94
1997 $783 1997 $97
1998 $901 1998 $112
1998 $867 1998 $94
9-Months Ended $656 9-Months Ended $65
9-Months Ended(2) $692 9-Months Ended(2) $75
</TABLE>
<TABLE>
<CAPTION>
EBIT ($ IN MILLIONS) EARNINGS PER SHARE
======================= ======================
<S> <C> <C> <C>
1997 $83 1997 $1.65
1997 $86 1997 $1.72
1998 $104 1998 $2.05
1998 $78 1998 $1.60
9-Months Ended $57 9-Months Ended $1.14
9-Months Ended(2) $65 9-Months Ended(2) $1.30
</TABLE>
- -------------
(1) Source: Sage Management Business Plans for years 1997, 1998 and 1999
compared to actual performance.
(2) Figures for nine months ended September 30, 1999.
10
<PAGE> 18
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PROJECTED 1999E RESULTS(1)
SAGE PLAN AND PERFORMANCE TO DATE
<TABLE>
<CAPTION>
QUARTERLY INCOME STATEMENT DATA ($ IN MILLIONS, EXCEPT PER SHARE DATA)
=======================================================================================================
1999E REVISED
Q1A Q2A Q3A Q4E 1999E
<S> <C> <C> <C> <C> <C>
Retail Sales $ 428.8 $ 425.8 $ 446.0 $ 492.4 $ 1,793.0
Distributor allowances (202.4) (199.4) (195.2) (198.8) (838.9)
Net sales $ 226.4 $ 226.4 $ 238.9 $ 262.4 $ 954.1
Growth % 8.0% 7.8% 12.1% 12.2% 10.1%
Gross margin $ 167.9 $ 168.7 $ 175.4 $ 192.3 $ 704.4
Gross margin % 74.2% 74.5% 73.4% 73.3% 73.8%
EBITDA $ 23.1 $ 22.9 $ 28.6 $ 30.9 $ 105.5
EBITDA margin % 10.2% 10.1% 12.0% 11.8% 11.1%
EBIT $ 19.0 $ 19.7 $ 25.8 $ 26.7 $ 91.2
EBIT margin % 8.4% 8.7% 10.8% 10.2% 9.6%
Net income $ 11.7 $ 12.2 $ 15.5 $ 16.5 $ 56.0
Net income margin % 5.2% 5.4% 6.5% 6.3% 5.9%
EPS $ 0.38 $ 0.40 $ 0.51 $ 0.56 $ 1.85
EPS growth % (20.8)% (20.0)% 112.5% 47.4% 15.6%
- -------------------------------------------------------------------------------------------------------
</TABLE>
- --------------
(1) Source: Sage public documents and revised Management forecast.
11
<PAGE> 19
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
FINANCIAL FORECAST
- - We understand from the Special Committee that Sage has historically not
presented long-term financial forecasts to its Board for review
- - There is virtually no Wall Street equity research available to assess Wall
Street's longer-term view of Sage's prospects
- - The long-term forecast presented here is a revised forecast which uses
similar growth rate and margin assumptions as the original management
forecast as a basis, but uses a revised estimate of 1999E forecast as its
starting point.
12
<PAGE> 20
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PROJECTED FINANCIAL RESULTS(1)
<TABLE>
<CAPTION>
NET SALES GROWTH EBITDA GROWTH
($ IN MILLIONS) RATE ($ IN MILLIONS) RATE
===================================== ======================================
<S> <C> <C> <C> <C> <C>
1999E $954.1 10.1% 1999E $105.5 12.00%
2000P $998.5 4.7% 2000P $108.7 3.10%
2001P $1,047.9 4.9% 2001P $120.5 10.90%
2002P $1,098.8 4.9% 2002P $123.5 2.50%
2003P $1,155.9 5.2% 2003P $123.1 (0.40%)
2004P $1,213.2 5.0% 2004P $127.5 3.50%
</TABLE>
<TABLE>
<CAPTION>
EBIT GROWTH GROWTH
($ IN MILLIONS) RATE EPS RATE
================================== ===================================
<S> <C> <C> <C> <C> <C>
1999E $ 91.2 16.40% 1999E $1.85 15.6%
2000P $ 94.2 3.40% 2000P $1.87 1.1%
2001P $104.6 11.00% 2001P $2.09 11.8%
2002P $106.5 1.90% 2002P $2.14 2.4%
2003P $105.0 (1.50%) 2003P $2.12 (0.9%)
2004P $110.7 5.40% 2004P $2.25 6.1%
</TABLE>
- --------------
(1) Source: Sage Management's revised Business Plan.
13
<PAGE> 21
3
<PAGE> 22
[BEAR STEARNS LETTERHEAD]
SECTION 3
OVERVIEW OF SAGE STOCK
<PAGE> 23
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SAGE MAJOR EVENTS--LATEST TWO YEARS
- - In December 1997 Sage split its common equity into two classes of
stock--Class A voting and Class B non-voting.
<TABLE>
<CAPTION>
Date Sage A Sage B annotation
------- ------- ------ ----------
<S> <C> <C> <C>
8/27/97 22.8290 #N/A
8/28/97 22.9220 #N/A
8/29/97 23.4493 #N/A
9/1/97 23.4493 #N/A
9/2/97 23.2632 #N/A
9/3/97 23.4493 #N/A
9/4/97 23.5734 #N/A
9/5/97 23.2012 #N/A
9/8/97 20.8439 #N/A
9/9/97 22.0846 #N/A
9/10/97 21.4642 #N/A
9/11/97 21.0920 #N/A
9/12/97 22.0846 #N/A
9/15/97 22.4568 #N/A
9/16/97 22.8290 #N/A
9/17/97 22.8290 #N/A
9/18/97 23.6975 #N/A
9/19/97 23.9456 #N/A
9/22/97 24.1317 #N/A
9/23/97 24.0697 #N/A
9/24/97 23.9456 #N/A
9/25/97 24.1938 #N/A
9/26/97 25.3104 #N/A
9/29/97 26.0548 #N/A
9/30/97 25.9307 #N/A
10/1/97 26.9853 #N/A
10/2/97 26.7372 #N/A
10/3/97 26.3030 #N/A
10/6/97 22.8290 #N/A
10/7/97 24.0697 #N/A
10/8/97 24.5660 #N/A
10/9/97 25.5585 #N/A
10/10/97 26.1789 #N/A
10/13/97 25.0002 #N/A
10/14/97 23.5734 #N/A
10/15/97 23.2012 #N/A
10/16/97 23.4493 #N/A
10/17/97 22.8290 #N/A
10/20/97 23.5114 #N/A
10/21/97 23.8215 #N/A
10/22/97 24.4419 #N/A
10/23/97 24.9382 #N/A
10/24/97 24.5660 #N/A
10/27/97 21.7123 #N/A
10/28/97 23.5734 #N/A
10/29/97 23.5734 #N/A
10/30/97 24.6900 #N/A
10/31/97 24.8141 #N/A
11/3/97 24.9382 #N/A 24.9382
11/4/97 23.5734 #N/A
11/5/97 22.9530 #N/A
11/6/97 22.7049 #N/A
11/7/97 22.9530 #N/A
11/10/97 22.3947 #N/A
11/11/97 21.7123 #N/A
11/12/97 21.9605 #N/A
11/13/97 21.8984 #N/A
11/14/97 22.0846 #N/A
11/17/97 22.0225 #N/A
11/18/97 21.5883 #N/A
11/19/97 20.7198 #N/A
11/20/97 21.2161 #N/A
11/21/97 20.9679 #N/A
11/24/97 20.7198 #N/A
11/25/97 20.4716 #N/A
11/26/97 19.8513 #N/A
11/27/97 19.8513 #N/A
11/28/97 19.8513 #N/A
12/1/97 21.8364 #N/A
12/2/97 22.3327 #N/A
12/3/97 21.9605 #N/A
12/4/97 22.7049 #N/A
12/5/97 22.4568 #N/A
12/8/97 22.5808 #N/A
12/9/97 22.5808 #N/A
12/10/97 22.3327 #N/A
12/11/97 22.7049 #N/A
12/12/97 21.5263 #N/A
12/15/97 22.2500 22.5000
12/16/97 23.3750 23.0000
12/17/97 23.1250 23.0000
12/18/97 21.6250 21.6250
12/19/97 23.0000 22.5000
12/22/97 23.2500 23.0000
12/23/97 22.2500 21.7500
12/24/97 21.0000 21.2500
12/25/97 21.0000 21.2500
12/26/97 21.5625 20.8750
12/29/97 21.0000 21.0000
12/30/97 21.9375 21.5000
12/31/97 21.0000 21.5000
1/1/98 21.0000 21.5000
1/2/98 21.7500 21.4375
1/5/98 22.7500 22.0000
1/6/98 22.8750 22.0000
1/7/98 23.0000 22.0000
1/8/98 22.2500 20.5000
1/9/98 20.5000 18.5000
1/12/98 20.3750 18.0000
1/13/98 22.5000 19.6250
1/14/98 22.1875 21.0000
1/15/98 22.8750 21.5000
1/16/98 23.6250 21.0625
1/19/98 23.6250 21.0625
1/20/98 23.7813 21.2500
1/21/98 23.8750 20.7500
1/22/98 23.6250 20.8750 23.6250
1/23/98 23.5000 20.6875
1/26/98 23.0625 20.6250
1/27/98 23.5000 20.6250
1/28/98 22.5625 19.7500
1/29/98 23.1250 20.5625
1/30/98 24.5000 21.7500
2/2/98 22.5000 20.6250
2/3/98 21.6250 19.8750
2/4/98 21.0625 19.6250
2/5/98 21.2500 19.6875
2/6/98 22.0000 21.0000
2/9/98 22.1250 21.3750
2/10/98 22.1250 21.4375
2/11/98 22.8750 21.5625
2/12/98 22.7500 21.8750
2/13/98 23.6250 23.3750
2/16/98 23.6250 23.3750
2/17/98 23.9375 23.5625
2/18/98 24.2500 23.3750
2/19/98 23.8750 23.3125 23.8750
2/20/98 23.6250 23.0000
2/23/98 24.1250 23.7500
2/24/98 23.2500 23.0000
2/25/98 24.0000 23.4375
2/26/98 25.0000 24.1250
2/27/98 24.0000 23.2500
3/2/98 23.8750 23.3750
3/3/98 24.7500 23.5000
3/4/98 24.4375 23.3125
3/5/98 24.6250 23.8750
3/6/98 25.0000 24.0000
3/9/98 25.7500 24.9688
3/10/98 26.7500 25.3125
3/11/98 26.5000 25.3750
3/12/98 27.3750 26.0000
3/13/98 27.8125 26.5000
3/16/98 27.6250 26.5000
3/17/98 27.2500 26.2500
3/18/98 27.8125 26.7500
3/19/98 27.5000 26.5000
3/20/98 28.0000 26.5000
3/23/98 27.8750 26.3125
3/24/98 28.2500 25.8750
3/25/98 25.9375 23.1250 25.9375
3/26/98 24.8125 22.7500
3/27/98 25.1250 23.5000
3/30/98 25.1250 23.6250
3/31/98 25.2500 23.6875
4/1/98 25.3750 23.3750
4/2/98 25.7500 23.8750
4/3/98 24.7500 23.2500
4/6/98 24.7500 23.1875
4/7/98 24.3750 22.8750
4/8/98 24.1250 23.1250
4/9/98 24.6875 23.4375
4/10/98 24.6875 23.4375
4/13/98 25.0000 23.0000
4/14/98 25.2500 23.2500
4/15/98 25.7500 23.5000
4/16/98 25.2500 23.6250
4/17/98 25.1875 23.5625
4/20/98 25.5000 23.7500
4/21/98 25.8750 23.6875
4/22/98 26.0000 24.0000
4/23/98 27.1875 25.5000
4/24/98 27.4375 25.5000
4/27/98 27.1875 25.0000
4/28/98 26.7500 25.0000
4/29/98 27.7500 26.0000
4/30/98 27.0000 25.0000
5/1/98 27.9375 25.8125
5/4/98 28.2500 26.3750
5/5/98 29.0000 26.5625
5/6/98 28.5000 26.5000
5/7/98 28.3750 25.7500
5/8/98 28.3750 25.7500
5/11/98 28.0000 25.6875
5/12/98 27.8125 26.0000
5/13/98 27.5000 25.6250
5/14/98 27.3438 25.0000
5/15/98 26.5000 24.5625
5/18/98 26.6875 24.8750
5/19/98 26.5000 24.3125
5/20/98 26.5000 24.5000
5/21/98 26.5625 24.9375
5/22/98 27.5000 25.2500
5/25/98 27.5000 25.2500
5/26/98 26.0000 24.0000
5/27/98 25.0000 23.4375
5/28/98 25.5625 23.3125
5/29/98 25.7500 23.3750
6/1/98 25.6875 23.3750
6/2/98 25.0625 22.5000
6/3/98 23.6250 21.3750
6/4/98 23.3750 20.6250
6/5/98 24.0000 22.3750
6/8/98 24.6875 22.7500
6/9/98 24.0000 22.6875
6/10/98 23.6875 22.0625
6/11/98 22.9375 21.0000
6/12/98 23.0000 21.2813
6/15/98 22.0000 20.3125
6/16/98 21.9375 19.8750
6/17/98 22.6250 20.5000
6/18/98 22.6875 20.2500
6/19/98 22.1250 19.6250
6/22/98 22.8750 20.1250
6/23/98 23.8125 20.7500
6/24/98 24.1875 21.3750
6/25/98 24.3125 21.0000
6/26/98 24.6875 21.3125
6/29/98 24.9375 20.8750
6/30/98 24.6250 20.6250
7/1/98 25.3750 21.2500
7/2/98 25.6250 21.7500
7/3/98 25.6250 21.7500
7/6/98 26.5000 21.8750
7/7/98 26.7500 22.2500
7/8/98 27.7500 23.7500
7/9/98 27.3750 22.7500
7/10/98 27.3750 22.6250
7/13/98 27.6250 23.0000
7/14/98 26.3750 21.7500
7/15/98 26.5000 22.3750
7/16/98 26.3750 21.3750
7/17/98 27.1250 21.7500
7/20/98 28.0000 22.6250
7/21/98 27.6875 22.8125
7/22/98 26.3750 21.5000 26.3750
7/23/98 21.7500 18.0000
7/24/98 22.3125 17.7500
7/27/98 21.5000 17.0000
7/28/98 21.1250 16.6250
7/29/98 20.1875 16.2500
7/30/98 19.0625 15.2500
7/31/98 19.0625 15.8125
8/3/98 17.9375 15.2500
8/4/98 17.1875 14.3750 17.1875
8/5/98 17.3750 14.3750
8/6/98 18.2500 15.0625
8/7/98 18.0625 14.8750
8/10/98 17.7500 14.1250
8/11/98 17.0000 13.7500
8/12/98 17.2500 14.1250
8/13/98 17.2188 13.7500
8/14/98 16.5000 13.4375
8/17/98 16.5000 13.3125
8/18/98 16.6250 13.1250
8/19/98 16.8750 13.4375
8/20/98 16.5000 13.1250
8/21/98 16.2500 12.8750
8/24/98 16.6875 12.9375
8/25/98 16.3750 12.9375
8/26/98 15.6875 12.5000
8/27/98 12.5000 10.5000
8/28/98 14.0000 11.1250
8/31/98 13.3125 10.3125
9/1/98 14.1875 10.3750 14.1875
9/2/98 13.3750 9.5000
9/3/98 12.8125 9.0000
9/4/98 13.0000 9.2500
9/7/98 13.0000 9.2500
9/8/98 13.3750 9.7500
9/9/98 13.0000 9.5000
9/10/98 12.5000 9.1250
9/11/98 11.7500 9.0000
9/14/98 11.7500 9.3750
9/15/98 11.5000 8.6250
9/16/98 11.5000 8.1250
9/17/98 10.4375 7.5625
9/18/98 10.6250 7.8750
9/21/98 9.7500 7.4063
9/22/98 10.2500 7.8750
9/23/98 10.0000 7.8750
9/24/98 9.8750 7.8750
9/25/98 9.7500 7.6250
9/28/98 9.7500 7.4375
9/29/98 9.5000 7.4375
9/30/98 9.2500 7.9375
10/1/98 10.0000 7.6875
10/2/98 10.2500 8.3125
10/5/98 10.5000 8.0000
10/6/98 10.1250 7.8125
10/7/98 9.1250 7.3125
10/8/98 8.3750 6.6250
10/9/98 8.5000 6.9375
10/12/98 8.4063 7.0000
10/13/98 8.4063 7.0313
10/14/98 8.0000 6.6250
10/15/98 8.0625 6.7500 8.0625
10/16/98 8.7500 7.8750
10/19/98 10.3125 9.0625
10/20/98 12.1250 11.0000
10/21/98 11.9375 10.1875
10/22/98 11.1250 10.0000
10/23/98 11.1875 9.6875
10/26/98 11.7500 9.8750
10/27/98 11.5000 9.6875
10/28/98 10.8750 9.1250
10/29/98 11.2500 9.1875
10/30/98 11.4375 9.0000
11/2/98 12.4375 9.6250
11/3/98 12.2500 9.6875
11/4/98 12.5000 9.7500
11/5/98 12.4375 9.7500
11/6/98 12.8750 9.9375
11/9/98 12.9375 9.8125
11/10/98 12.8750 9.6250
11/11/98 12.3750 9.6250
11/12/98 11.3125 8.8750
11/13/98 11.3125 8.8750
11/16/98 11.7500 9.1250
11/17/98 11.7500 9.0625
11/18/98 11.8125 9.0000
11/19/98 12.0000 9.1250
11/20/98 11.8750 9.1875
11/23/98 12.3125 9.5000
11/24/98 11.8125 9.6250
11/25/98 12.2500 9.7500
11/26/98 12.2500 9.7500
11/27/98 11.9375 9.8125
11/30/98 11.8125 9.6875
12/1/98 11.9375 9.5000
12/2/98 11.5000 9.3750
12/3/98 11.6250 9.3750
12/4/98 11.2500 9.0625
12/7/98 11.2500 9.1875
12/8/98 11.3750 9.1875
12/9/98 11.7500 9.3750
12/10/98 11.5000 9.1250
12/11/98 11.5000 9.2500
12/14/98 11.1250 9.4375
12/15/98 11.3750 9.4375
12/16/98 11.9375 9.7500
12/17/98 12.1250 9.8125
12/18/98 12.6875 10.0000
12/21/98 13.8750 10.6875
12/22/98 14.5000 11.2500
12/23/98 15.1250 11.7500
12/24/98 14.8125 12.0000
12/25/98 14.8125 12.0000
12/28/98 14.5000 11.5000
12/29/98 14.3125 11.5000
12/30/98 14.3750 11.3750
12/31/98 14.2500 11.4375
1/1/99 14.2500 11.4375
1/4/99 13.5625 10.7500
1/5/99 14.0000 11.5000
1/6/99 13.9375 11.5625 13.9375
1/7/99 13.7500 11.5000
1/8/99 14.3750 11.6250
1/11/99 14.3750 11.5000
1/12/99 14.8750 12.3750
1/13/99 15.2500 12.3125
1/14/99 15.0000 12.5000
1/15/99 15.1250 12.3750
1/18/99 15.1250 12.3750
1/19/99 15.0000 12.3125
1/20/99 14.6875 12.2500
1/21/99 14.7500 12.2500
1/22/99 14.9375 12.3750
1/25/99 15.0625 12.0000
1/26/99 15.1875 12.0000
1/27/99 14.7500 11.7500
1/28/99 14.4375 11.7500
1/29/99 15.1875 12.1875
2/1/99 15.1250 11.7500
2/2/99 14.7500 11.6250
2/3/99 14.7500 11.8750
2/4/99 14.5625 11.8750
2/5/99 14.1250 11.6875
2/8/99 14.5000 11.2500
2/9/99 14.0000 11.3750
2/10/99 13.7500 11.3750
2/11/99 14.0625 11.4063
2/12/99 14.1875 11.1875
2/15/99 14.1875 11.1875
2/16/99 13.5000 10.9375
2/17/99 12.8125 10.8125
2/18/99 13.0000 10.9375
2/19/99 13.0000 11.0000
2/22/99 12.8750 10.8750
2/23/99 12.7500 10.8750
2/24/99 12.5000 10.5625
2/25/99 13.0625 10.9375
2/26/99 13.3750 11.1250
3/1/99 13.5000 11.0000
3/2/99 13.1250 10.8750
3/3/99 12.7500 10.3750
3/4/99 12.8125 10.0000
3/5/99 12.5625 9.7813
3/8/99 11.6250 9.5000
3/9/99 11.2500 9.2813
3/10/99 11.4375 9.5625
3/11/99 11.5625 9.6875
3/12/99 11.7500 9.5000
3/15/99 11.6250 9.5000
3/16/99 11.8125 9.2500
3/17/99 11.5625 9.3438
3/18/99 11.6875 9.6250
3/19/99 11.8750 9.4844
3/22/99 11.8750 9.5000
3/23/99 11.7500 9.2500
3/24/99 11.6250 9.3750
3/25/99 11.6875 9.3750
3/26/99 11.7188 9.3750
3/29/99 11.4375 9.4375
3/30/99 11.7500 9.3750
3/31/99 12.3125 9.3750
4/1/99 11.6250 9.5000
4/2/99 11.6250 9.5000
4/5/99 11.3750 9.3750
4/6/99 11.5000 9.1875
4/7/99 10.6250 8.8750
4/8/99 10.8750 8.8125
4/9/99 10.8125 8.7500
4/12/99 10.8125 8.8125
4/13/99 10.8125 8.8750
4/14/99 10.7500 8.8125
4/15/99 10.6250 8.6250
4/16/99 10.8125 8.7500
4/19/99 10.7500 8.5625
4/20/99 10.6250 8.6563
4/21/99 10.6250 8.7500
4/22/99 10.9375 9.2500
4/23/99 10.3750 8.6250
4/26/99 10.4375 8.7500
4/27/99 10.1875 8.3750
4/28/99 10.3750 8.4375
4/29/99 10.1250 8.7500
4/30/99 10.3750 8.6250
5/3/99 10.4375 8.8125
5/4/99 11.0000 9.0625
5/5/99 11.4375 9.4375
5/6/99 11.3125 9.3125
5/7/99 11.6250 9.5000
5/10/99 11.8125 9.5000
5/11/99 11.2500 9.1875
5/12/99 10.6875 9.0000
5/13/99 10.8750 9.1250
5/14/99 10.6875 8.6875
5/17/99 10.6250 8.6875
5/18/99 11.1875 8.8750
5/19/99 10.8750 8.6875
5/20/99 11.5000 9.2500
5/21/99 11.8750 9.5000
5/24/99 11.7500 9.5000
5/25/99 11.4375 9.4375
5/26/99 11.6250 9.2500
5/27/99 11.0000 9.0625
5/28/99 11.0000 9.2500
5/31/99 11.0000 9.2500
6/1/99 11.3750 9.1250
6/2/99 10.5000 9.0625
6/3/99 10.8125 8.9375
6/4/99 10.8125 8.8750
6/7/99 11.1875 9.0000
6/8/99 11.2500 8.8750
6/9/99 10.8750 8.9375
6/10/99 10.7500 9.0000
6/11/99 10.6250 9.0625
6/14/99 10.6875 8.6563
6/15/99 10.5625 8.8750
6/16/99 10.7500 8.9375
6/17/99 10.7500 8.9375
6/18/99 10.6250 8.9375
6/21/99 10.9375 8.9063
6/22/99 10.2500 8.6875
6/23/99 10.3750 8.6250
6/24/99 10.3750 8.5625
6/25/99 10.3125 8.4375
6/28/99 10.5000 8.4688
6/29/99 10.3750 8.4375
6/30/99 10.9375 8.6250
7/1/99 10.5000 8.4375
7/2/99 10.5000 8.7500
7/5/99 10.5000 8.7500
7/6/99 10.0625 8.4375
7/7/99 10.5625 8.6250
7/8/99 10.6875 8.6250
7/9/99 10.6250 8.6250
7/12/99 10.7500 8.6250
7/13/99 10.6250 8.6250
7/14/99 10.6250 8.5625
7/15/99 10.7500 8.6875
7/16/99 10.8750 8.8125
7/19/99 11.2500 9.0000
7/20/99 11.1250 9.0313
7/21/99 11.5625 9.3750
7/22/99 12.1250 10.1250 12.1250
7/23/99 12.0000 10.0625
7/26/99 12.0625 9.7500
7/27/99 12.0000 9.7500
7/28/99 12.1875 9.9375
7/29/99 12.2500 9.9688
7/30/99 11.5625 9.4063
8/2/99 12.0000 9.7500
8/3/99 12.0000 10.0000
8/4/99 12.1875 9.8750
8/5/99 12.0625 9.7500
8/6/99 12.0000 9.6563
8/9/99 11.9375 9.5625
8/10/99 11.9375 9.5000
8/11/99 12.0625 9.5000
8/12/99 12.0625 9.5625
8/13/99 12.3125 9.6250
8/16/99 12.1875 9.5000
8/17/99 11.7500 9.1875
8/18/99 11.9375 9.2500
8/19/99 11.8750 9.0938
8/20/99 12.0000 9.3125
8/23/99 12.0000 9.3750
8/24/99 12.2500 9.4063
8/25/99 12.0000 9.3750
8/26/99 12.1250 9.3750
8/27/99 11.9375 9.4375
8/30/99 12.0000 9.4063
8/31/99 12.0000 9.2500
9/1/99 11.9375 9.3125
9/2/99 11.7500 9.2500
9/3/99 11.9375 9.2500
9/6/99 11.9375 9.2500
9/7/99 12.0625 9.2500
9/8/99 12.0625 9.3125
9/9/99 12.0625 9.3125
9/10/99 12.2500 9.2500
9/13/99 12.0000 9.1563 12.0000
9/14/99 15.1250 14.6875
9/15/99 15.0625 14.6250
9/16/99 14.8125 14.3750
9/17/99 14.7500 14.4375 14.7500
9/20/99 15.0625 14.6875
9/21/99 14.8750 14.5000
9/22/99 15.0000 14.5000
9/23/99 14.7500 14.4375
9/24/99 14.8125 14.5000
9/27/99 15.1250 14.5625
9/28/99 15.0000 14.5000
9/29/99 14.9375 14.5000
9/30/99 15.2500 14.4375
10/1/99 15.0000 14.1875
10/4/99 15.1250 14.3750
10/5/99 14.9375 14.2500
10/6/99 15.0625 14.5000
10/7/99 15.0000 14.3906
10/8/99 15.0000 14.3750
10/11/99 15.0625 14.4375
10/12/99 15.0000 14.4375
10/13/99 15.0625 14.3125
10/14/99 15.0000 14.0625
10/15/99 14.6250 13.8750
10/18/99 14.8750 14.0625
10/19/99 14.8750 13.9375
10/20/99 14.5000 13.5000
10/21/99 14.8750 13.5000
10/22/99 14.9375 13.5000
10/25/99 14.7500 13.0000
10/26/99 14.6250 13.0625
10/27/99 14.6250 13.3750
10/28/99 14.7500 13.3750
10/29/99 14.7500 13.5938
11/1/99 14.7500 13.5000
11/2/99 14.5625 13.3750
11/3/99 14.3750 13.5000
11/4/99 14.1875 13.5625
11/5/99 14.3750 13.6875
11/8/99 14.5625 13.7500
11/9/99 13.6250 12.6250
11/10/99 13.3125 12.2500
11/11/99 13.6250 12.3750
11/12/99 13.3125 12.2500
11/15/99 13.8750 12.6250
11/16/99 14.4375 12.8125
11/17/99 14.2500 13.0000
11/18/99 14.1875 13.1250
11/19/99 14.1250 13.1250
11/22/99 14.3125 12.6875
11/23/99 14.2500 12.7500
11/24/99 14.0625 13.0000
11/25/99 14.0625 13.0000
11/26/99 14.2500 13.1250
11/29/99 14.3125 13.1250
11/30/99 14.5000 13.0000
12/1/99 14.5000 13.3750
12/2/99 14.7500 13.5000
12/3/99 14.6875 13.3750
12/6/99 14.8125 13.4375
12/7/99 14.9375 13.3750
12/8/99 14.6875 13.5000
12/9/99 14.6875 13.5000
12/10/99 14.3750 13.4375
12/13/99 14.6250 13.7500
12/14/99 14.6250 13.6250
12/15/99 14.1875 13.3750
12/16/99 14.3125 13.2500
12/17/99 14.0625 13.1250
12/20/99 13.8750 13.1250
12/21/99 14.1250 13.1250
12/22/99 13.7500 13.0000
12/23/99 14.0000 13.0000
12/24/99 14.0000 13.0000
12/27/99 13.8750 13.2500
12/28/99 13.9375 13.2500
12/29/99 13.6875 13.2500
12/30/99 14.1250 13.2500
12/31/99 14.3750 13.3750
1/3/00 14.1250 13.2500
1/4/00 13.9687 13.3125
1/5/00 13.5625 13.3125
1/6/00 14.0000 13.1250
1/7/00 13.8750 13.0000 13.8750
1/10/00 14.5000 13.5625
1/11/00 15.0000 14.5000
1/12/00 15.3125 14.6875
1/13/00 15.8750 15.4375
1/14/00 16.0000 15.8125
1/17/00 16.0000 15.8125
1/18/00 16.2500 16.1875
1/19/00 16.1250 16.0625
</TABLE>
A 11/03/97: Proposes dual class recapitalization.
B 01/22/98: Authorizes new $20M share repurchase program.
C 02/19/98: Reports record sales and earnings for 1997.
D 03/25/98: Announces pricing of exchangeable debt issue backed securities
at $23.
E 07/22/98: Announces 2nd Q earnings representing 11th consecutive quarter
of comparable period increases in sales and earnings.
F 07/22/98: Announces that challenging currency environment in Asia and
economic uncertainty in Russia is expected to contribute to
slower sales growth.
G 08/04/98: Authorizes new $20M share repurchase program.
H 08/04/98: GNC announces downward price revisions.
I 09/01/98: Announcement of substantial Russian sales decline and related
3rd Q Charge.
J 10/15/98: Adams, Harkness and Hill downgrades to market performer.
K 01/06/99: CBOE announces it will begin trading options on Sage.
L 07/22/99: Royal Numico announces acquisition of GNC.
M 09/13/99: Mark Hughes announces leveraged buyout of Sage.
N 09/17/99: Tender offer launched.
O 01/07/00: Shareholder lawsuit settlement.
- --------------
Source: FactSet Research Systems.
14
<PAGE> 24
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
HISTORICAL RELATIVE PRICE ANALYSIS
SAGE'S TRADING HISTORY MORE CLOSELY TRACKS THAT OF COMPANIES IN THE VITAMIN AND
NUTRITIONAL SUPPLEMENTS INDUSTRY.
AUGUST 4, 1998 TO JANUARY 19, 2000
================================================================================
<TABLE>
<CAPTION>
MLM VNS
Date Sage A Sage B Marketers Supplements S&P 500
---- ------ ------ --------- ----------- -------
<S> <C> <C> <C> <C> <C>
8/4/98 100.0000 100.0000 100.0000 100.0000 100.0000
8/5/98 101.0909 100.0000 98.9493 94.6016 100.8684
8/6/98 106.1818 104.7826 98.1572 100.5373 101.6332
8/7/98 105.0909 103.4783 97.7098 105.4907 101.6164
8/10/98 103.2727 98.2609 97.2283 103.7360 101.0279
8/11/98 98.9091 95.6522 95.0259 99.7103 99.7071
8/12/98 100.3636 98.2609 96.3966 103.5436 101.1286
8/13/98 100.1818 95.6522 93.6415 99.4471 100.2602
8/14/98 96.0000 93.4783 91.2785 99.4786 99.1260
8/17/98 96.0000 92.6087 93.7040 101.3713 101.0773
8/18/98 96.7273 91.3044 93.0274 104.8244 102.7124
8/19/98 98.1818 93.4783 91.1735 103.3382 102.4195
8/20/98 96.0000 91.3044 89.1592 101.9145 101.8170
8/21/98 94.5455 89.5652 87.4653 103.0012 100.8507
8/24/98 97.0909 90.0000 87.8315 102.7228 101.4942
8/25/98 95.2727 90.0000 89.2535 98.6221 101.9336
8/26/98 91.2727 86.9565 87.2112 93.9191 101.1258
8/27/98 72.7273 73.0435 81.6771 92.1148 97.2456
8/28/98 81.4545 77.3913 79.3311 88.7395 95.8046
8/31/98 77.4545 71.7391 73.7412 79.8481 89.2885
9/1/98 82.5455 72.1739 77.5391 85.2614 92.7378
9/2/98 77.8182 66.0870 74.7670 89.2260 92.3843
9/3/98 74.5455 62.6087 72.8119 86.4190 91.6185
9/4/98 75.6364 64.3478 70.6182 86.4557 90.8378
9/7/98 75.6364 64.3478 70.6182 86.4557 90.8378
9/8/98 77.8182 67.8261 72.2435 92.6436 95.4613
9/9/98 75.6364 66.0870 70.3283 90.3800 93.8514
9/10/98 72.7273 63.4783 69.3781 88.2431 91.4254
9/11/98 68.3636 62.6087 68.5270 87.4164 94.1182
9/14/98 68.3636 65.2174 69.3764 89.6935 96.0452
9/15/98 66.9091 60.0000 70.1482 91.5403 96.7877
9/16/98 66.9091 56.5217 72.4109 95.3205 97.5152
9/17/98 60.7273 52.6087 68.9696 93.8147 95.0332
9/18/98 61.8182 54.7826 67.6316 96.5498 95.1470
9/21/98 56.7273 51.5217 64.2779 91.7331 95.5014
9/22/98 59.6364 54.7826 63.2119 90.2942 96.0368
9/23/98 58.1818 54.7826 64.4451 87.0505 99.4376
9/24/98 57.4545 54.7826 63.1600 82.6224 97.2578
9/25/98 56.7273 53.0435 62.8305 81.2571 97.4471
9/28/98 56.7273 51.7391 62.0807 76.2998 97.8146
9/29/98 55.2727 51.7391 62.3560 74.1172 97.8454
9/30/98 53.8182 55.2174 65.1280 74.0878 94.8597
10/1/98 58.1818 53.4783 63.5292 73.7942 92.0037
10/2/98 59.6364 57.8261 66.7043 75.4489 93.5157
10/5/98 61.0909 55.6522 65.9852 73.2951 92.2061
10/6/98 58.9091 54.3478 67.6501 73.9875 91.8358
10/7/98 53.0909 50.8696 71.7410 71.7890 90.5384
10/8/98 48.7273 46.0870 71.7821 68.4796 89.4900
10/9/98 49.4546 48.2609 69.5586 66.3207 91.8172
10/12/98 48.9091 48.6957 72.6438 69.7940 93.0596
10/13/98 48.9091 48.9130 72.7638 67.1992 92.7881
10/14/98 46.5455 46.0870 73.7916 65.5909 93.7890
10/15/98 46.9091 46.9565 76.5681 65.9668 97.7027
10/16/98 50.9091 54.7826 81.6481 70.7607 98.5356
10/19/98 60.0000 63.0435 83.2642 71.5451 99.0925
10/20/98 70.5455 76.5217 84.6326 73.0157 99.2361
10/21/98 69.4545 70.8696 80.8915 73.6837 99.7948
10/22/98 64.7273 69.5652 82.8339 75.8677 100.5932
10/23/98 65.0909 67.3913 87.1298 74.4440 99.8648
10/26/98 68.3636 68.6957 87.9269 75.2088 100.0187
10/27/98 66.9091 67.3913 87.9966 74.7183 99.3676
10/28/98 63.2727 63.4783 86.7429 73.4985 99.6241
10/29/98 65.4545 63.9130 86.4352 71.4062 101.2881
10/30/98 66.5455 62.6087 89.8000 73.8406 102.4764
11/2/98 72.3636 66.9565 93.4001 78.3172 103.6824
11/3/98 71.2727 67.3913 94.6443 79.8749 103.6115
11/4/98 72.7273 67.8261 92.7707 83.8681 104.3419
11/5/98 72.3636 67.8261 95.1720 67.3727 105.7578
11/6/98 74.9091 69.1304 96.5369 68.4881 106.4256
11/9/98 75.2727 68.2609 93.3532 69.7133 105.4173
11/10/98 74.9091 66.9565 93.9383 69.6384 105.2364
11/11/98 72.0000 66.9565 93.4988 70.1904 104.5564
11/12/98 65.8182 61.7391 92.6344 68.3972 104.2505
11/13/98 65.8182 61.7391 91.3139 68.9764 104.9994
11/16/98 68.3636 63.4783 93.7456 69.0221 105.9462
11/17/98 68.3636 63.0435 92.9392 68.9740 106.2680
11/18/98 68.7273 62.6087 93.4004 68.7650 106.7493
11/19/98 69.8182 63.4783 92.8277 67.6165 107.5076
11/20/98 69.0909 63.9130 93.0333 69.1523 108.5280
11/23/98 71.6364 66.0870 96.5704 68.8428 110.8281
11/24/98 68.7273 66.9565 95.0227 64.5043 110.3412
11/25/98 71.2727 67.8261 95.5691 64.8417 110.7031
11/26/98 71.2727 67.8261 95.5691 64.8417 110.7031
11/27/98 69.4545 68.2609 95.3958 64.6543 111.2124
11/30/98 68.7273 67.3913 93.3991 62.2255 108.5354
12/1/98 69.4545 66.0870 90.6393 57.7377 109.6221
12/2/98 66.9091 65.2174 88.9634 59.2507 109.2462
12/3/98 67.6364 65.2174 86.4372 58.2195 107.2772
12/4/98 65.4545 63.0435 87.9478 57.4865 109.7582
12/7/98 65.4545 63.9130 87.3334 56.8390 110.7805
12/8/98 66.1818 63.9130 85.4987 56.6857 110.1910
12/9/98 68.3636 65.2174 83.6438 59.9041 110.3878
12/10/98 66.9091 63.4783 85.0497 59.9826 108.6651
12/11/98 66.9091 64.3478 87.6093 60.6796 108.7994
12/14/98 64.7273 65.6522 86.2602 60.5447 106.4433
12/15/98 66.1818 65.6522 89.4954 61.5029 108.4608
12/16/98 69.4545 67.8261 91.0832 61.3567 108.3778
12/17/98 70.5455 68.2609 90.5774 60.9817 110.0604
12/18/98 73.8182 69.5652 90.5422 60.9229 110.8113
12/21/98 80.7273 74.3478 92.0268 59.8756 112.1927
12/22/98 84.3636 78.2609 92.3519 58.1169 112.2608
12/23/98 88.0000 81.7391 97.3585 58.5225 114.5898
12/24/98 86.1818 83.4783 95.4872 58.2211 114.3781
12/25/98 86.1818 83.4783 95.4872 58.2211 114.3781
12/28/98 84.3636 80.0000 96.3195 57.5277 114.3053
12/29/98 83.2727 80.0000 100.2209 57.4751 115.8275
12/30/98 83.6364 79.1304 96.6238 57.9615 114.9060
12/31/98 82.9091 79.5652 97.4879 62.5235 114.6541
1/1/99 82.9091 79.5652 97.4879 62.5235 114.6541
1/4/99 78.9091 74.7826 96.8054 63.5061 114.5487
1/5/99 81.4545 80.0000 97.3629 63.4339 116.1046
1/6/99 81.0909 80.4348 96.0935 64.8706 118.6752
1/7/99 80.0000 80.0000 97.5090 65.3723 118.4317
1/8/99 83.6364 80.8696 96.0022 65.0714 118.9317
1/11/99 83.6364 80.0000 95.0936 64.6697 117.8861
1/12/99 86.5455 86.0870 94.4841 64.2662 115.6130
1/13/99 88.7273 85.6522 90.5263 64.1349 115.1364
1/14/99 87.2727 86.9565 87.1549 63.9401 113.0648
1/15/99 88.0000 86.0870 89.6446 65.2147 115.9628
1/18/99 88.0000 86.0870 89.6446 65.2147 115.9628
1/19/99 87.2727 85.6522 89.8039 67.0194 116.7780
1/20/99 85.4545 85.2174 89.3301 65.6078 117.2089
1/21/99 85.8182 85.2174 88.3476 63.8756 115.2073
1/22/99 86.9091 86.0870 86.8631 63.7837 114.2773
1/25/99 87.6364 83.4783 86.7228 63.0622 115.0972
1/26/99 88.3636 83.4783 84.7241 63.5101 116.8069
1/27/99 85.8182 81.7391 86.1036 61.1614 115.9544
1/28/99 84.0000 81.7391 85.0842 61.2787 118.0250
1/29/99 88.3636 84.7826 87.4107 60.3968 119.3561
2/1/99 88.0000 81.7391 86.6121 60.1006 118.7367
2/2/99 85.8182 80.8696 86.1706 59.9250 117.7098
2/3/99 85.8182 82.6087 90.0658 59.7909 118.6500
2/4/99 84.7273 82.6087 96.6519 59.0385 116.4506
2/5/99 82.1818 81.3043 95.4921 57.8753 115.6027
2/8/99 84.3636 78.2609 92.5788 57.3282 116.0103
2/9/99 81.4545 79.1304 91.7909 57.6314 113.4332
2/10/99 80.0000 79.1304 93.3523 56.2136 114.1244
2/11/99 81.8182 79.3478 94.1970 58.1867 116.9683
2/12/99 82.5455 77.8261 93.8103 56.8221 114.7381
2/15/99 82.5455 77.8261 93.8103 56.8221 114.7381
2/16/99 78.5455 76.0870 94.9374 55.8934 115.8331
2/17/99 74.5455 75.2174 93.5366 53.6337 114.1691
2/18/99 75.6364 76.0870 95.1087 54.5596 115.4050
2/19/99 75.6364 76.5217 94.0813 55.7121 115.5859
2/22/99 74.9091 75.6522 95.3144 55.8797 118.6565
2/23/99 74.1818 75.6522 93.9825 56.6271 118.5670
2/24/99 72.7273 73.4783 93.6786 55.8432 116.9095
2/25/99 76.0000 76.0870 94.1000 55.4352 116.1269
2/26/99 77.8182 77.3913 89.8030 55.1897 115.5029
3/1/99 78.5455 76.5217 91.9639 53.1966 115.3005
3/2/99 76.3636 75.6522 96.0864 52.7791 114.3062
3/3/99 74.1818 72.1739 97.8134 52.8057 114.5114
3/4/99 74.5455 69.5652 97.0734 53.9990 116.2780
3/5/99 73.0909 68.0435 98.8786 56.0827 118.9671
3/8/99 67.6364 66.0870 98.6350 55.7777 119.6443
3/9/99 65.4545 64.5652 98.2956 56.2453 119.3747
3/10/99 66.5455 66.5217 99.1087 56.1121 120.0276
3/11/99 67.2727 67.3913 99.9278 55.4946 121.0387
3/12/99 68.3636 66.0870 98.2909 54.7401 120.7505
3/15/99 67.6364 66.0870 96.5549 55.8681 121.9322
3/16/99 68.7273 64.3478 95.6439 60.0877 121.8502
3/17/99 67.2727 65.0000 95.7341 64.2603 121.0517
3/18/99 68.0000 66.9565 97.0470 63.1175 122.7988
3/19/99 69.0909 65.9783 97.1495 61.0943 121.1889
3/22/99 69.0909 66.0870 97.9224 61.0311 120.9762
3/23/99 68.3636 64.3478 96.8033 58.8387 117.7238
3/24/99 67.6364 65.2174 94.6343 59.8701 118.3254
3/25/99 68.0000 65.2174 97.7934 58.8422 120.3214
3/26/99 68.1818 65.2174 97.2179 58.1402 119.6508
3/29/99 66.5455 65.6522 99.6035 57.7382 122.2037
3/30/99 68.3636 65.2174 97.7891 56.2350 121.3250
3/31/99 71.6364 65.2174 99.2563 56.4831 119.9838
4/1/99 67.6364 66.0870 100.1579 56.6178 120.6693
4/2/99 67.6364 66.0870 100.1579 56.6178 120.6693
4/5/99 66.1818 65.2174 100.9554 57.0929 123.2250
4/6/99 66.9091 63.9130 98.0271 56.5760 122.9237
4/7/99 61.8182 61.7391 99.4967 55.5980 123.7632
4/8/99 63.2727 61.3044 100.8178 54.1840 125.3572
4/9/99 62.9091 60.8696 103.9221 55.2347 125.7648
4/12/99 62.9091 61.3044 107.4016 55.6281 126.7246
4/13/99 62.9091 61.7391 109.7508 56.7992 125.9020
4/14/99 62.5455 61.3044 112.4742 56.6263 123.9078
4/15/99 61.8182 60.0000 111.8358 54.2716 123.3873
4/16/99 62.9091 60.8696 114.6555 54.8747 123.0273
4/19/99 62.5455 59.5652 114.1056 53.0529 120.2739
4/20/99 61.8182 60.2174 106.9778 53.8605 121.8306
4/21/99 61.8182 60.8696 109.3336 54.4244 124.6241
4/22/99 63.6364 64.3478 107.0368 54.4343 126.7414
4/23/99 60.3636 60.0000 106.8037 52.8664 126.5577
4/26/99 60.7273 60.8696 108.4900 55.3518 126.8552
4/27/99 59.2727 58.2609 107.5580 56.5976 127.1126
4/28/99 60.3636 58.6957 108.9466 54.7500 126.0036
4/29/99 58.9091 60.8696 112.1203 55.1259 125.2500
4/30/99 60.3636 60.0000 113.0306 54.6754 124.5365
5/3/99 60.7273 61.3044 115.1756 58.1270 126.3506
5/4/99 64.0000 63.0435 114.4853 58.9752 124.2398
5/5/99 66.5455 65.6522 111.9579 59.7915 125.6679
5/6/99 65.8182 64.7826 111.2893 59.0325 124.2445
5/7/99 67.6364 66.0870 111.8829 59.9550 125.4524
5/10/99 68.7273 66.0870 108.9606 60.1532 125.0140
5/11/99 65.4545 63.9130 111.0739 60.5365 126.4420
5/12/99 62.1818 62.6087 111.0986 61.7749 127.2246
5/13/99 63.2727 63.4783 112.6546 63.5218 127.5566
5/14/99 62.1818 60.4348 110.4809 61.9724 124.7808
5/17/99 61.8182 60.4348 109.9303 62.9790 124.9384
5/18/99 65.0909 61.7391 108.8135 62.5704 124.3630
5/19/99 63.2727 60.4348 109.1631 63.9322 125.3806
5/20/99 66.9091 64.3478 109.4634 66.0708 124.8769
5/21/99 69.0909 66.0870 109.4948 63.9125 124.0803
5/24/99 68.3636 66.0870 108.5313 63.1558 121.8754
5/25/99 66.5455 65.6522 105.7400 62.6565 119.8000
5/26/99 67.6364 64.3478 106.7126 63.4703 121.6991
5/27/99 64.0000 63.0435 104.7729 60.9171 119.5211
5/28/99 64.0000 64.3478 105.2730 59.9580 121.4267
5/31/99 64.0000 64.3478 105.2730 59.9580 121.4267
6/1/99 66.1818 63.4783 108.2560 59.6971 120.7197
6/2/99 61.0909 63.0435 106.8666 58.8504 120.7710
6/3/99 62.9091 62.1739 110.0038 59.2767 121.2122
6/4/99 62.9091 61.7391 111.1481 58.7701 123.8434
6/7/99 65.0909 62.6087 111.3672 58.3324 124.4749
6/8/99 65.4545 61.7391 112.6388 57.3501 122.8715
6/9/99 63.2727 62.1739 111.2867 56.5679 122.9937
6/10/99 62.5455 62.6087 111.1314 55.3813 121.5181
6/11/99 61.8182 63.0435 112.0298 54.5660 120.6619
6/14/99 62.1818 60.2174 114.9927 53.9507 120.6955
6/15/99 61.4546 61.7391 114.6408 50.9927 121.3633
6/16/99 62.5455 62.1739 113.8024 50.9234 124.0915
6/17/99 62.5455 62.1739 113.4605 51.5985 124.9767
6/18/99 61.8182 62.1739 112.1084 51.5657 125.2509
6/21/99 63.6364 61.9565 113.9532 51.5613 125.8255
6/22/99 59.6364 60.4348 111.8150 50.3381 124.6017
6/23/99 60.3636 60.0000 111.4069 51.3151 124.3387
6/24/99 60.3636 59.5652 112.2786 51.6430 122.7269
6/25/99 60.0000 58.6957 112.8252 51.6522 122.6831
6/28/99 61.0909 58.9131 114.5717 51.1372 124.1792
6/29/99 60.3636 58.6957 116.8272 50.6948 126.0540
6/30/99 63.6364 60.0000 117.7411 50.6370 128.0370
7/1/99 61.0909 58.6957 116.9165 51.7526 128.8065
7/2/99 61.0909 60.8696 117.1274 52.7893 129.7635
7/5/99 61.0909 60.8696 117.1274 52.7893 129.7635
7/6/99 58.5455 58.6957 119.0564 53.6945 129.4743
7/7/99 61.4546 60.0000 117.7283 53.7027 130.1962
7/8/99 62.1818 60.0000 117.4795 54.4138 130.0619
7/9/99 61.8182 60.0000 117.3924 54.6348 130.8883
7/12/99 62.5455 60.0000 115.8282 54.1271 130.4984
7/13/99 61.8182 60.0000 114.7879 53.9667 129.9817
7/14/99 61.8182 59.5652 116.6348 54.2472 130.4117
7/15/99 62.5455 60.4348 115.0912 54.9279 131.4797
7/16/99 63.2727 61.3044 115.2667 54.6503 132.3341
7/19/99 65.4545 62.6087 114.0939 54.3438 131.2959
7/20/99 64.7273 62.8261 113.5090 53.8572 128.4464
7/21/99 67.2727 65.2174 109.0342 54.3165 128.6507
7/22/99 70.5455 70.4348 106.8266 53.0030 126.9419
7/23/99 69.8182 70.0000 102.3979 53.3859 126.5661
7/26/99 70.1818 67.8261 101.0827 53.0495 125.7098
7/27/99 69.8182 67.8261 101.9361 53.0233 127.1164
7/28/99 70.9091 69.1304 100.5196 52.6691 127.3552
7/29/99 71.2727 69.3478 100.5564 51.5215 125.0821
7/30/99 67.2727 65.4348 100.4526 52.4908 123.9339
8/2/99 69.8182 67.8261 101.9747 51.8727 123.8714
8/3/99 69.8182 69.5652 102.0831 50.3248 123.3239
8/4/99 70.9091 68.6957 98.2334 50.0732 121.7522
8/5/99 70.1818 67.8261 98.7945 49.8550 122.5339
8/6/99 69.8182 67.1739 98.2901 49.8996 121.2821
8/9/99 69.4545 66.5217 97.1333 50.4473 121.0499
8/10/99 69.4545 66.0870 97.5025 50.6349 119.5230
8/11/99 70.1818 66.0870 96.2438 51.7385 121.4351
8/12/99 70.1818 66.5217 97.5177 51.4058 121.0835
8/13/99 71.6364 66.9565 97.4885 52.6942 123.8369
8/16/99 70.9091 66.0870 98.2517 53.4433 124.1251
8/17/99 68.3636 63.9130 99.1847 53.8531 125.3740
8/18/99 69.4545 64.3478 96.6632 53.3764 124.3182
8/19/99 69.0909 63.2609 96.8816 54.3770 123.4554
8/20/99 69.8182 64.7826 99.1127 54.5442 124.6698
8/23/99 69.8182 65.2174 100.3154 53.5075 126.8720
8/24/99 71.2727 65.4348 99.8057 54.0434 127.1779
8/25/99 69.8182 65.2174 102.9215 53.8845 128.8839
8/26/99 70.5455 65.2174 102.2143 53.0983 127.0390
8/27/99 69.4545 65.6522 99.9757 53.2484 125.7574
8/30/99 69.8182 65.4348 97.6654 52.5934 123.4955
8/31/99 69.8182 64.3478 97.2351 52.8511 123.1588
9/1/99 69.4545 64.7826 96.9445 52.9974 124.1531
9/2/99 68.3636 64.3478 97.7281 51.7081 123.0375
9/3/99 69.4545 64.3478 99.4919 52.1634 126.5940
9/6/99 69.4545 64.3478 99.4919 52.1634 126.5940
9/7/99 70.1818 64.3478 92.7008 52.5586 125.9607
9/8/99 70.1818 64.7826 91.5972 52.2845 125.3731
9/9/99 70.1818 64.7826 90.6632 52.7409 125.7005
9/10/99 71.2727 64.3478 91.1765 52.0669 126.0736
9/13/99 69.8182 63.6957 90.9495 52.4169 125.3712
9/14/99 88.0000 102.1739 91.4395 52.6835 124.6400
9/15/99 87.6364 101.7391 90.6424 53.1885 122.9312
9/16/99 86.1818 100.0000 89.9118 52.7182 122.9788
9/17/99 85.8182 100.4348 89.8329 54.9283 124.5588
9/20/99 87.6364 102.1739 89.1428 54.2909 124.5691
9/21/99 86.5455 100.8696 87.5288 54.5132 121.9621
9/22/99 87.2727 100.8696 88.2454 54.3882 122.2354
9/23/99 85.8182 100.4348 86.0028 54.3976 119.4279
9/24/99 86.1818 100.8696 84.8250 54.0696 119.1434
9/27/99 88.0000 101.3044 82.1154 53.8835 119.6984
9/28/99 87.2727 100.8696 81.8818 54.9174 119.5948
9/29/99 86.9091 100.8696 66.4127 54.2829 118.3049
9/30/99 88.7273 100.4348 64.1671 51.5511 119.6424
10/1/99 87.2727 98.6957 64.8248 50.9061 119.6517
10/4/99 88.0000 100.0000 63.5686 50.1496 121.6841
10/5/99 86.9091 99.1304 64.4355 50.1186 121.3810
10/6/99 87.6364 100.8696 66.9318 50.0345 123.6242
10/7/99 87.2727 100.1087 68.1224 49.5262 122.9004
10/8/99 87.2727 100.0000 66.1142 50.4592 124.6148
10/11/99 87.6364 100.4348 65.9669 50.7551 124.5392
10/12/99 87.2727 100.4348 68.0789 49.8600 122.4714
10/13/99 87.6364 99.5652 67.7216 48.4252 119.9073
10/14/99 87.2727 97.8261 68.0672 49.1965 119.7086
10/15/99 85.0909 96.5217 67.4139 48.7113 116.3499
10/18/99 86.5455 97.8261 68.6000 46.7703 116.9767
10/19/99 86.5455 96.9565 71.0214 48.0706 117.6473
10/20/99 84.3636 93.9130 72.0007 49.1237 120.2692
10/21/99 86.5455 93.9130 72.3850 48.3519 119.7263
10/22/99 86.9091 93.9130 74.2134 48.8955 121.4090
10/25/99 85.8182 90.4348 76.6127 49.7460 120.6609
10/26/99 85.0909 90.8696 75.0505 49.6471 119.5678
10/27/99 85.0909 93.0435 74.6548 49.9335 120.9482
10/28/99 85.8182 93.0435 77.7729 50.2252 125.2136
10/29/99 85.8182 94.5652 76.5341 48.6964 127.1248
11/1/99 85.8182 93.9130 75.3144 49.3192 126.3030
11/2/99 84.7273 93.0435 72.6592 49.2800 125.7080
11/3/99 83.6364 93.9130 72.5474 49.8296 126.3786
11/4/99 82.5455 94.3478 75.2834 49.7490 127.0977
11/5/99 83.6364 95.2174 70.8785 49.8834 127.8057
11/8/99 84.7273 95.6522 70.1550 49.3865 128.4380
11/9/99 79.2727 87.8261 69.1964 50.4349 127.3440
11/10/99 77.4545 85.2174 69.1550 51.2210 128.1069
11/11/99 79.2727 86.0870 67.8358 52.0166 128.8531
11/12/99 77.4545 85.2174 68.6171 53.0859 130.2149
11/15/99 80.7273 87.8261 77.8442 54.0548 130.0591
11/16/99 84.0000 89.1304 75.6785 54.2326 132.4544
11/17/99 82.9091 90.4348 76.4203 54.8829 131.5814
11/18/99 82.5455 91.3044 78.6003 54.3303 132.9086
11/19/99 82.1818 91.3044 77.8670 54.7264 132.6344
11/22/99 83.2727 88.2609 76.4254 54.1203 132.5355
11/23/99 82.9091 88.6957 78.1894 53.1377 131.0152
11/24/99 81.8182 90.4348 83.7126 54.1212 132.1755
11/25/99 81.8182 90.4348 83.7126 54.1212 132.1755
11/26/99 82.9091 91.3044 83.6926 54.2652 132.1326
11/29/99 83.2727 91.3044 87.4644 53.1426 131.3127
11/30/99 84.3636 90.4348 88.3125 52.4388 129.5480
12/1/99 84.3636 93.0435 86.4537 51.6007 130.3697
12/2/99 85.8182 93.9130 87.1393 52.6099 131.4256
12/3/99 85.4545 93.0435 88.1073 52.7343 133.6884
12/6/99 86.1818 93.4783 85.4131 52.5001 132.7585
12/7/99 86.9091 93.0435 84.6469 51.8143 131.4377
12/8/99 85.4545 93.9130 81.7603 51.9653 130.9443
12/9/99 85.4545 93.9130 81.2258 51.5135 131.3389
12/10/99 83.6364 93.4783 82.7745 51.5889 132.1718
12/13/99 85.0909 95.6522 79.4339 52.6823 132.0020
12/14/99 85.0909 94.7826 79.7157 52.9233 130.8781
12/15/99 82.5455 93.0435 80.9110 53.2773 131.8248
12/16/99 83.2727 92.1739 78.3433 54.4925 132.3341
12/17/99 81.8182 91.3044 79.8071 54.4905 132.5439
12/20/99 80.7273 91.3044 80.2327 53.2576 132.2697
12/21/99 82.1818 91.3044 79.3513 53.0568 133.7005
12/22/99 80.0000 90.4348 79.0113 52.3339 133.9524
12/23/99 81.4545 90.4348 80.1767 52.1584 136.0240
12/24/99 81.4545 90.4348 80.1767 52.1584 136.0240
12/27/99 80.7273 92.1739 79.9435 52.4812 135.9083
12/28/99 81.0909 92.1739 80.2892 52.3903 135.9605
12/29/99 79.6364 92.1739 78.8932 52.3167 136.5015
12/30/99 82.1818 92.1739 81.4540 52.2823 136.5957
12/31/99 83.6364 93.0435 81.1298 52.3004 137.0416
1/3/00 82.1818 92.1739 78.0188 51.1529 135.7329
1/4/00 81.2727 92.6087 77.1520 50.1007 130.5283
1/5/00 78.9091 92.6087 76.1356 52.1107 130.7792
1/6/00 81.4545 91.3044 77.0292 52.5565 130.9042
1/7/00 80.7273 90.4348 78.4457 55.1107 134.4504
1/10/00 84.3636 94.3478 77.8444 55.7392 135.9549
1/11/00 87.2727 100.8696 78.3773 54.9946 134.1790
1/12/00 89.0909 102.1739 76.9251 54.5181 133.5905
1/13/00 92.3636 107.3913 75.5236 55.6402 135.2162
1/14/00 93.0909 110.0000 74.9120 55.9220 136.6591
1/17/00 93.0909 110.0000 74.9120 55.9220 136.6591
1/18/00 94.5455 112.6087 74.5606 56.2597 135.7255
1/19/00 93.8182 111.7391 74.4856 56.6430 135.7964
</TABLE>
- --------------------------------------------------------------------------------
- --------------
Source: FactSet Research Systems.
(1) Includes Amway Asia Pacific, Amway Japan, Avon, Nature's Sunshine, Nu
Skin, Tupperware and USANA.
(2) Includes Natrol, Nature's Sunshine, NBTY, Nutraceutical, Rexall
Sundown, Twinlab, USANA and Weider Nutrition.
15
<PAGE> 25
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SHARES TRADED AT PRICE INCREMENTS PRIOR TO TRANSACTION ANNOUNCEMENT--CLASS A(1)
PRIOR SIX MONTHS
================================================================================
<TABLE>
<CAPTION>
Price Six Months
- ------------- ----------
<S> <C>
$10.00-$10.50 568,500
$10.50-$11.00 1,380,200
$11.00-$11.50 453,800
$11.50-$12.00 710,600
$12.00-$12.50 493,700
$12.50-$13.00 63,300
$13.00-$13.50 24,100
</TABLE>
- --------------------------------------------------------------------------------
PRIOR 1-YEAR AND 2-YEAR
================================================================================
<TABLE>
<CAPTION>
Price One Year Two Year
- ----- -------- --------
<S> <C> <C>
$6-$8
$8-$10 1,417,400 1,417,400
$10-$12 4,786,300 4,786,300
$12-$14 2,138,300 2,138,300
$14-$16 1,073,100 1,097,400
$16-$18 581,200
$18-$20 542,900
$20-$22 2,386,501
$22-$24 5,141,335
$24-$26 3,774,067
$26-$28 2,076,934
$28-$30 609,500
</TABLE>
- --------------------------------------------------------------------------------
- --------------
Source: FactSet Research Systems.
(1) As of September 9, 1999.
16
<PAGE> 26
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SHARES TRADED AT PRICE INCREMENTS PRIOR TO TRANSACTION ANNOUNCEMENT--CLASS B(1)
PRIOR SIX MONTHS
================================================================================
<TABLE>
<CAPTION>
Price Six Months
- ----- ----------
<S> <C>
$ 8.00 - $ 8.50 631,500
$ 8.50 - $ 9.00 2,340,200
$ 9.00 - $ 9.50 1,743,000
$ 9.50 - $10.00 1,287,500
$10.00 - $10.50 305,200
$10.50 - $11.00 85,000
$11.00 - $11.50 129,300
</TABLE>
- --------------------------------------------------------------------------------
PRIOR 1-YEAR AND 2-YEAR
================================================================================
<TABLE>
<CAPTION>
Price One Year Two Year
- ----- -------- --------
<S> <C> <C>
$ 6 - $ 8 2,341,400 2,341,400
$ 8 - $10 11,994,900 11,994,900
$10 - $12 3,988,900 3,988,900
$12 - $14 516,000 1,444,700
$14 - $16 807,600
$16 - $18 364,900
$18 - $20 1,613,100
$20 - $22 4,851,700
$22 - $24 8,255,700
$24 - $26 2,318,100
$26 - $28 1,211,900
$28 - $30
</TABLE>
- --------------------------------------------------------------------------------
- --------------
Source: FactSet Research Systems.
(1) As of September 9, 1999.
17
<PAGE> 27
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SAGE OWNERSHIP PROFILE PRIOR TO LAUNCH OF TENDER OFFER
<TABLE>
<CAPTION>
SAGE CLASS A SHAREHOLDERS
================================================================================
HOLDINGS
INSIDERS(1) (SHARES/OPTIONS) % OWNERSHIP
<S> <C> <C>
Mark Hughes(2) 6,579,332 53.9%
Other Insiders(3) 1,252,290 10.3
TOP INSTITUTIONS(4)
Fidelity Mgmt & Research Co 1,037,500 8.5
Ryback Management Corp 851,841 7.0
Brandywine Asset Mgmt, Inc. 652,730 5.3
American Cent Cos 202,100 1.7
Royce & Associates, Inc. 172,700 1.4
California Public Emp Ret Sys 171,400 1.4
Barclays Bank Plc 164,993 1.4
General Motors Invt Mgmt Corp. 140,200 1.1
Goldman Sachs And Company 125,300 1.0
Bankamerica Corporation 100,232 0.8
Bankers Trust N Y Corp 81,664 0.7
PaineWebber Pace Sml Med Val I 75,599 0.6
Dimensional Fd Advisors, Inc. 73,533 0.6
OTHER STOCKHOLDERS 541,103 4.4
---------- -----
TOTAL GROSS DILUTED SHARES(1): 12,195,706 100.0%
========== =====
SAGE CLASS B SHAREHOLDERS
HOLDINGS
INSIDERS(1) (SHARES/OPTIONS) % OWNERSHIP
Mark Hughes(2) 12,033,669 50.4%
Other Insiders(3) 4,417,204 18.5
TOP INSTITUTIONS(4)
Fidelity Mgmt & Research Co 2,010,500 8.4
David L. Babson & Co, Inc.(5) 1,370,166 5.7
Brinson Partners, Inc. 1,071,000 4.5
California Public Emp Ret Sys 342,800 1.4
Mellon Private Asset Mgmt 282,242 1.2
Cardinal Capital Mgmt Limited 275,200 1.2
First Wilshire Secs Mgmt, Inc. 244,400 1.0
Kennedy Capital Mgmt, Inc. 181,910 0.8
Dimensional Fd Advisors, Inc. 139,566 0.6
Manley Fuller Asset Mgmt, L.P. 138,600 0.6
Barclays Bank Plc 136,054 0.6
Northern Trust Company Of Ct 122,800 0.5
Brandywine Asset Mgmt, Inc. 104,563 0.4
OTHER STOCKHOLDERS 1,001,907 4.2
---------- -----
TOTAL GROSS DILUTED SHARES(1): 23,872,219 100.0%
========== =====
</TABLE>
<TABLE>
<S> <C>
TOTAL GROSS DILUTED SHARES: 36,067,925
</TABLE>
- --------------------------------------------------------------------------------
- --------------
(1) Source: Donaldson, Lufkin and Jenrette as of September 7, 1999.
(2) Includes 5,000,000 Class B shares held in a DECS Trust, 183,333 Class A
shares and 366,666 Class B shares held by the Sage Family Foundation
and 999,999 Class A options and 875,001 Class B options.
(3) Including Officers, Directors and employees; includes 1,238,704 Class A
options and 4,417,204 Class B options.
(4) CDA/Spectrum as of June 30, 1999.
(5) Includes 703,333 shares held as a 13F institution and 666,833 shares
held as a management company.
18
<PAGE> 28
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
WALL STREET COMMENTARY ON SAGE STOCK
SAGE HAS VERY LIMITED WALL STREET RESEARCH COVERAGE. CURRENTLY, ONLY ADAMS,
HARKNESS AND HILL COVERS THE COMPANY EXTENSIVELY.
<TABLE>
<CAPTION>
==================================================================================================================================
PRICE
DATE ANALYST/FIRM RECOMMENDATION EPS/GROWTH ESTIMATE TARGET/TERM COMMENTS
---- ------------ -------------- ------------------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
1/10/00 B. Riley & Co. N/A N/A N/A - Reached a tentative settlement with
plaintiffs' counsel. Under terms of
settlement agreement, all public
holders including holders of DECS
securities, would receive a $0.81 per
share cash payment supplemental to the
$17 buyout offer
9/14/99 Patricia Negron Market EPS Estimate of N/A - $17 tender offer is fair when evaluated
Adams, Harkness & Performer $1.60 for CY1999 on an EBITDA basis. As a result, we
Hill, Inc. and $1.65 for believe it is a worthwhile arbitrage
CY2000. opportunity
7/22/99 Patricia Negron Market EPS Estimate of N/A - Still no catalyst in sight for the
Adams, Harkness & Performer $1.60 for CY1999 stock and, as a result numbers coming
Hill, Inc. and $1.65 for down again. Big dividend yield. U.S.
CY2000. continues to do well but Russia
continues to be uncertain
6/19/99 Patricia Negron Market EPS Estimate of N/A - Competition in the U.S. market is
Adams, Harkness & Performer $1.63 for CY1999 especially strong for direct sellers
Hill, Inc. and $1.70 for and national companies alike. The
CY2000. second half of the year is expected to
be marginally better; however, the
Company has opened essentially all of
the large potential markets for its
business
6/8/99 Tom Kelleher Terminating N/A N/A - Although there is belief that the stock
B. Riley & Co. Coverage is undervalued, there is concern about
the lack of visibility in sales and
in certain markets. This, combined with
management's decision to not buy back
shares and CEO Mark Hughes control over
the voting shares, leaves us to believe
current outside shareholders have little
control
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 29
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
WALL STREET COMMENTARY ON SAGE STOCK (CONT.)
SAGE HAS VERY LIMITED WALL STREET RESEARCH COVERAGE. CURRENTLY, ONLY ADAMS,
HARKNESS AND HILL COVERS THE COMPANY EXTENSIVELY.
<TABLE>
<CAPTION>
==================================================================================================================================
PRICE
DATE ANALYST/FIRM RECOMMENDATION EPS/GROWTH ESTIMATE TARGET/TERM COMMENTS
<S> <C> <C> <C> <C> <C> <C>
4/28/99 Patricia Negron Market EPS Estimate of N/A - Business was generally good for the
Adams, Harkness & Performer $1.63 for CY1999 quarter with the exception of Russia.
Hill, Inc. and $1.70 for Y2K spending will continue at high
CY2000. levels throughout the remainder of the
year. On the analyst conference call,
the company made clear that it intends
to conserve cash during the year
4/23/99 C. Warner Wilke Hold EPS Estimate of N/A - Top line revenue beat projections by
Prudential Securities $1.60 for CY1999. 5%. Introduction of new product called
"Colour by Dermajectics" should help
revenue projections in certain
countries. Outlook for 2000 should
improve, however, Japan continues to be
a wild card
3/22/99 Patricia Negron Market EPS Estimate of N/A - CFO was praised for "understanding the
Adams, Harkness & Performer $1.61 for CY1999 business's key strengths and his vision
Hill, Inc. and $1.69 for for the future". The Thermojectics bar
CY2000. was the most successful product for 1998
and is being rolled out internationally
in 1999. The number of supervisors
increased 22% as of end-February
2/26/99 C. Warner Wilke Hold EPS Estimate of N/A - Although there were revenue increases
Prudential Securities $1.60 for CY1999. quarter over quarter, outlook for 1999
is mixed. The reason is due to margin
pressures associated with weak Russia
sales and Y2K costs
2/3/99 Patricia Negron Market EPS Estimate of N/A - Overall, we believe the stock's current
Adams, Harkness & Performer $1.60 for CY1999. multiple reflects the risks in its
Hill, Inc. specific business model
10/22/98 M. Wong N/A EPS Estimate of N/A - Slashing CY1999 EPS estimates from
Salomon Smith Barney $1.57 for CY1999. $1.78 to $1.57 due to several factors.
These factors are due to lack of belief
in continuing momentum of U.S. market, a
weak Japanese economy and management's
projections
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 30
4
<PAGE> 31
[BEAR STEARNS LETTERHEAD]
SECTION 4
FINANCIAL ANALYSIS
<PAGE> 32
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
FINANCIAL ANALYSIS
- - Transaction Multiples and Premia
- - Discounted Cash Flow Analysis
- - Comparable Company Analysis
- - Public Shareholder Valuation
- - Precedent M&A Transactions
- - Indicative Third Party LBO Analysis
21
<PAGE> 33
A
<PAGE> 34
[BEAR STEARNS LETTERHEAD]
SECTION 4-A
TRANSACTION MULTIPLES AND PREMIA
<PAGE> 35
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
BUILD-UP OF TRANSACTION VALUE
<TABLE>
<CAPTION>
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
==================================================================================================================
CURRENT MARKET(1)
-------------------------------------------------
HYPOTHETICAL
PROPOSED TRANSACTION CLASS A BLENDED PRICE CLASS B
-------------------- --------- ------------- -------
<S> <C> <C> <C> <C>
Price per Share $ 17.81 $ 12.06 $ 10.27 $ 9.31
Value of Common Stock 509.9 120.7 294.1 173.5
Value of Options, Net of Exercise Proceeds 80.7 9.3 23.3 13.9
--------- ---------- ---------- ----------
Total Value of Equity $ 590.6 $ 130.0 $ 317.4 $ 187.4
Net Debt (111.9) (111.9)
Minority Interest 2.3 2.3
--------- ----------
Enterprise Value $ 481.0 $ 207.8
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------
(1) As of September 9, 1999.
22
<PAGE> 36
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
TRANSACTION MULTIPLES
<TABLE>
<CAPTION>
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
====================================================================================================================
MARKET(1)
--------------------------------------------
PROPOSED HYPOTHETICAL
TRANSACTION CLASS A BLENDED PRICE CLASS B
----------- ------- ------------- -------
<S> <C> <C> <C> <C> <C>
Price per Share $ 17.81 $ 12.06 $ 10.27 $ 9.31
Total Value of Equity 590.6 383.1 317.4 283.8
Total Enterprise Value 481.0 273.5 207.8 174.2
ENTERPRISE VALUE/REVENUE
- LTM $ 925.7 0.52x 0.30x 0.22x 0.19x
- 1999E 954.1 0.50 0.29 0.22 0.18
- 2000E 998.5 0.48 0.27 0.21 0.17
ENTERPRISE VALUE/EBITDA
- LTM $ 99.7 4.8x 2.7x 2.1x 1.7x
- 1999E 105.5 4.6 2.6 2.0 1.7
- 2000E 108.7 4.4 2.5 1.9 1.6
ENTERPRISE VALUE/EBIT
- LTM $ 83.1 5.8x 3.3x 2.5x 2.1x
- 1999E 91.2 5.3 3.0 2.3 1.9
- 2000E 94.2 5.1 2.9 2.2 1.8
PRICE/EARNINGS
- LTM $ 1.67 10.7x 7.2x 6.2x 5.6x
- 1999E 1.85 9.6 6.5 5.6 5.0
- 2000E 1.87 9.5 6.5 5.5 5.0
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
- ------------------
(1) As of September 9, 1999.
23
<PAGE> 37
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
TRANSACTION PREMIA AS OF SEPTEMBER 9, 1999(1)
<TABLE>
<CAPTION>
============================================================================================================
PREMIUM OVER PRICE: CLASS A HYPOTHETICAL BLENDED PRICE CLASS B
------------------- ------- -------------------------- -------
<S> <C> <C> <C>
One-Day Prior 47.6% 73.4% 91.2%
One-Month Prior 49.2 71.4 86.2
20 Trading Days Average 48.2 73.2 90.5
One-Year Average 50.5 72.4 87.0
52-Week High(2) 9.6 26.0 37.0
52-Week Low(3) 137.5 173.0 196.8
- ------------------------------------------------------------------------------------------------------------
</TABLE>
- -----------------
(1) As of September 9, 1999 over Transaction consideration of $17.81 per
share.
(2) Highs occurred on 1/14/99 for both Class A and Class B prior to
Transaction announcement.
(3) Lows occurred on 10/14/98 and 10/8/98 for Class A and Class B,
respectively, prior to Transaction announcement.
24
<PAGE> 38
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
CLASS B SHARE PRICE DISCOUNT TO CLASS A SHARE PRICE PRIOR TO TRANSACTION
ANNOUNCEMENT
SINCE LISTING OF CLASS B SHARES
<TABLE>
<CAPTION>
DATE Discount B-to-A
- -------- ---------------
<S> <C>
12/15/97 (1.11%)
12/16/97 1.63%
12/17/97 0.54%
12/18/97 0.00%
12/19/97 2.22%
12/22/97 1.09%
12/23/97 2.30%
12/24/97 (1.18%)
12/25/97 (1.18%)
12/26/97 3.29%
12/29/97 0.00%
12/30/97 2.03%
12/31/97 (2.33%)
1/1/98 (2.33%)
1/2/98 1.46%
1/5/98 3.41%
1/6/98 3.98%
1/7/98 4.55%
1/8/98 8.54%
1/9/98 10.81%
1/12/98 13.19%
1/13/98 14.65%
1/14/98 5.65%
1/15/98 6.40%
1/16/98 12.17%
1/19/98 12.17%
1/20/98 11.91%
1/21/98 15.06%
1/22/98 13.17%
1/23/98 13.60%
1/26/98 11.82%
1/27/98 13.94%
1/28/98 14.24%
1/29/98 12.46%
1/30/98 12.64%
2/2/98 9.09%
2/3/98 8.81%
2/4/98 7.32%
2/5/98 7.94%
2/6/98 4.76%
2/9/98 3.51%
2/10/98 3.21%
2/11/98 6.09%
2/12/98 4.00%
2/13/98 1.07%
2/16/98 1.07%
2/17/98 1.59%
2/18/98 3.74%
2/19/98 2.41%
2/20/98 2.72%
2/23/98 1.58%
2/24/98 1.09%
2/25/98 2.40%
2/26/98 3.63%
2/27/98 3.23%
3/2/98 2.14%
3/3/98 5.32%
3/4/98 4.83%
3/5/98 3.14%
3/6/98 4.17%
3/9/98 3.13%
3/10/98 5.68%
3/11/98 4.43%
3/12/98 5.29%
3/13/98 4.95%
3/16/98 4.25%
3/17/98 3.81%
3/18/98 3.97%
3/19/98 3.77%
3/20/98 5.66%
3/23/98 5.94%
3/24/98 9.18%
3/25/98 12.16%
3/26/98 9.07%
3/27/98 6.91%
3/30/98 6.35%
3/31/98 6.60%
4/1/98 8.56%
4/2/98 7.85%
4/3/98 6.45%
4/6/98 6.74%
4/7/98 6.56%
4/8/98 4.32%
4/9/98 5.33%
4/10/98 5.33%
4/13/98 8.70%
4/14/98 8.60%
4/15/98 9.57%
4/16/98 6.88%
4/17/98 6.90%
4/20/98 7.37%
4/21/98 9.23%
4/22/98 8.33%
4/23/98 6.62%
4/24/98 7.60%
4/27/98 8.75%
4/28/98 7.00%
4/29/98 6.73%
4/30/98 8.00%
5/1/98 8.23%
5/4/98 7.11%
5/5/98 9.18%
5/6/98 7.55%
5/7/98 10.19%
5/8/98 10.19%
5/11/98 9.00%
5/12/98 6.97%
5/13/98 7.32%
5/14/98 9.38%
5/15/98 7.89%
5/18/98 7.29%
5/19/98 9.00%
5/20/98 8.16%
5/21/98 6.52%
5/22/98 8.91%
5/25/98 8.91%
5/26/98 8.33%
5/27/98 6.67%
5/28/98 9.65%
5/29/98 10.16%
6/1/98 9.89%
6/2/98 11.39%
6/3/98 10.53%
6/4/98 13.33%
6/5/98 7.26%
6/8/98 8.52%
6/9/98 5.79%
6/10/98 7.37%
6/11/98 9.23%
6/12/98 8.08%
6/15/98 8.31%
6/16/98 10.38%
6/17/98 10.37%
6/18/98 12.04%
6/19/98 12.74%
6/22/98 13.66%
6/23/98 14.76%
6/24/98 13.16%
6/25/98 15.77%
6/26/98 15.84%
6/29/98 19.46%
6/30/98 19.39%
7/1/98 19.41%
7/2/98 17.82%
7/3/98 17.82%
7/6/98 21.14%
7/7/98 20.22%
7/8/98 16.84%
7/9/98 20.33%
7/10/98 20.99%
7/13/98 20.11%
7/14/98 21.26%
7/15/98 18.44%
7/16/98 23.39%
7/17/98 24.71%
7/20/98 23.76%
7/21/98 21.37%
7/22/98 22.67%
7/23/98 20.83%
7/24/98 25.70%
7/27/98 26.47%
7/28/98 27.07%
7/29/98 24.23%
7/30/98 25.00%
7/31/98 20.55%
8/3/98 17.62%
8/4/98 19.57%
8/5/98 20.87%
8/6/98 21.16%
8/7/98 21.43%
8/10/98 25.66%
8/11/98 23.64%
8/12/98 22.12%
8/13/98 25.23%
8/14/98 22.79%
8/17/98 23.94%
8/18/98 26.67%
8/19/98 25.58%
8/20/98 25.71%
8/21/98 26.21%
8/24/98 28.99%
8/25/98 26.57%
8/26/98 25.50%
8/27/98 19.05%
8/28/98 25.84%
8/31/98 29.09%
9/1/98 36.75%
9/2/98 40.79%
9/3/98 42.36%
9/4/98 40.54%
9/7/98 40.54%
9/8/98 37.18%
9/9/98 36.84%
9/10/98 36.99%
9/11/98 30.56%
9/14/98 25.33%
9/15/98 33.33%
9/16/98 41.54%
9/17/98 38.02%
9/18/98 34.92%
9/21/98 31.65%
9/22/98 30.16%
9/23/98 26.98%
9/24/98 25.40%
9/25/98 27.87%
9/28/98 31.09%
9/29/98 27.73%
9/30/98 16.54%
10/1/98 30.08%
10/2/98 23.31%
10/5/98 31.25%
10/6/98 29.60%
10/7/98 24.79%
10/8/98 26.42%
10/9/98 22.52%
10/12/98 20.09%
10/13/98 19.56%
10/14/98 20.75%
10/15/98 19.44%
10/16/98 11.11%
10/19/98 13.79%
10/20/98 10.23%
10/21/98 17.18%
10/22/98 11.25%
10/23/98 15.48%
10/26/98 18.99%
10/27/98 18.71%
10/28/98 19.18%
10/29/98 22.45%
10/30/98 27.08%
11/2/98 29.22%
11/3/98 26.45%
11/4/98 28.21%
11/5/98 27.56%
11/6/98 29.56%
11/9/98 31.85%
11/10/98 33.77%
11/11/98 28.57%
11/12/98 27.46%
11/13/98 27.46%
11/16/98 28.77%
11/17/98 29.66%
11/18/98 31.25%
11/19/98 31.51%
11/20/98 29.25%
11/23/98 29.61%
11/24/98 22.73%
11/25/98 25.64%
11/26/98 25.64%
11/27/98 21.66%
11/30/98 21.94%
12/1/98 25.66%
12/2/98 22.67%
12/3/98 24.00%
12/4/98 24.14%
12/7/98 22.45%
12/8/98 23.81%
12/9/98 25.33%
12/10/98 26.03%
12/11/98 24.32%
12/14/98 17.88%
12/15/98 20.53%
12/16/98 22.44%
12/17/98 23.57%
12/18/98 26.88%
12/21/98 29.82%
12/22/98 28.89%
12/23/98 28.72%
12/24/98 23.44%
12/25/98 23.44%
12/28/98 26.09%
12/29/98 24.46%
12/30/98 26.37%
12/31/98 24.59%
1/1/99 24.59%
1/4/99 26.16%
1/5/99 21.74%
1/6/99 20.54%
1/7/99 19.57%
1/8/99 23.66%
1/11/99 25.00%
1/12/99 20.20%
1/13/99 23.86%
1/14/99 20.00%
1/15/99 22.22%
1/18/99 22.22%
1/19/99 21.83%
1/20/99 19.90%
1/21/99 20.41%
1/22/99 20.71%
1/25/99 25.52%
1/26/99 26.56%
1/27/99 25.53%
1/28/99 22.87%
1/29/99 24.62%
2/1/99 28.72%
2/2/99 26.88%
2/3/99 24.21%
2/4/99 22.63%
2/5/99 20.86%
2/8/99 28.89%
2/9/99 23.08%
2/10/99 20.88%
2/11/99 23.29%
2/12/99 26.82%
2/15/99 26.82%
2/16/99 23.43%
2/17/99 18.50%
2/18/99 18.86%
2/19/99 18.18%
2/22/99 18.39%
2/23/99 17.24%
2/24/99 18.34%
2/25/99 19.43%
2/26/99 20.22%
3/1/99 22.73%
3/2/99 20.69%
3/3/99 22.89%
3/4/99 28.13%
3/5/99 28.43%
3/8/99 22.37%
3/9/99 21.21%
3/10/99 19.61%
3/11/99 19.35%
3/12/99 23.68%
3/15/99 22.37%
3/16/99 27.70%
3/17/99 23.75%
3/18/99 21.43%
3/19/99 25.21%
3/22/99 25.00%
3/23/99 27.03%
3/24/99 24.00%
3/25/99 24.67%
3/26/99 25.00%
3/29/99 21.19%
3/30/99 25.33%
3/31/99 31.33%
4/1/99 22.37%
4/2/99 22.37%
4/5/99 21.33%
4/6/99 25.17%
4/7/99 19.72%
4/8/99 23.40%
4/9/99 23.57%
4/12/99 22.70%
4/13/99 21.83%
4/14/99 21.99%
4/15/99 23.19%
4/16/99 23.57%
4/19/99 25.55%
4/20/99 22.74%
4/21/99 21.43%
4/22/99 18.24%
4/23/99 20.29%
4/26/99 19.29%
4/27/99 21.64%
4/28/99 22.96%
4/29/99 15.71%
4/30/99 20.29%
5/3/99 18.44%
5/4/99 21.38%
5/5/99 21.19%
5/6/99 21.48%
5/7/99 22.37%
5/10/99 24.34%
5/11/99 22.45%
5/12/99 18.75%
5/13/99 19.18%
5/14/99 23.02%
5/17/99 22.30%
5/18/99 26.06%
5/19/99 25.18%
5/20/99 24.32%
5/21/99 25.00%
5/24/99 23.68%
5/25/99 21.19%
5/26/99 25.68%
5/27/99 21.38%
5/28/99 18.92%
5/31/99 18.92%
6/1/99 24.66%
6/2/99 15.86%
6/3/99 20.98%
6/4/99 21.83%
6/7/99 24.31%
6/8/99 26.76%
6/9/99 21.68%
6/10/99 19.44%
6/11/99 17.24%
6/14/99 23.47%
6/15/99 19.01%
6/16/99 20.28%
6/17/99 20.28%
6/18/99 18.88%
6/21/99 22.81%
6/22/99 17.99%
6/23/99 20.29%
6/24/99 21.17%
6/25/99 22.22%
6/28/99 23.99%
6/29/99 22.96%
6/30/99 26.81%
7/1/99 24.44%
7/2/99 20.00%
7/5/99 20.00%
7/6/99 19.26%
7/7/99 22.46%
7/8/99 23.91%
7/9/99 23.19%
7/12/99 24.64%
7/13/99 23.19%
7/14/99 24.09%
7/15/99 23.74%
7/16/99 23.40%
7/19/99 25.00%
7/20/99 23.18%
7/21/99 23.33%
7/22/99 19.75%
7/23/99 19.25%
7/26/99 23.72%
7/27/99 23.08%
7/28/99 22.64%
7/29/99 22.88%
7/30/99 22.92%
8/2/99 23.08%
8/3/99 20.00%
8/4/99 23.42%
8/5/99 23.72%
8/6/99 24.27%
8/9/99 24.84%
8/10/99 25.66%
8/11/99 26.97%
8/12/99 26.14%
8/13/99 27.92%
8/16/99 28.29%
8/17/99 27.89%
8/18/99 29.05%
8/19/99 30.58%
8/20/99 28.86%
8/23/99 28.00%
8/24/99 30.23%
8/25/99 28.00%
8/26/99 29.33%
8/27/99 26.49%
8/30/99 27.57%
8/31/99 29.73%
9/1/99 28.19%
9/2/99 27.03%
9/3/99 29.05%
9/6/99 29.05%
9/7/99 30.41%
9/8/99 29.53%
9/9/99 29.53%
</TABLE>
- -----------
Source: FactSet Research Systems.
25
<PAGE> 39
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
STOCK PREMIUM ANALYSIS PRIOR TO TRANSACTION ANNOUNCEMENT
<TABLE>
<CAPTION>
($ IN MILLIONS)
===========================================================================================
MINORITY BUY-IN
GOING PRIVATE TRANSACTIONS(1) TRANSACTIONS(2)
----------------------------- ---------------
<S> <C> <C>
Number of Transactions 13 14
ONE-DAY PRIOR PREMIUM
High 87.4% 62.0%
Low (10.6) (5.2)
Median 15.6 20.6
Mean 18.1 23.6
Sage Transaction(3)
Class A 47.6% 47.6%
Class B 91.2 91.2
Hypothetical Blended Price 73.4 73.4
ONE-MONTH PRIOR PREMIUM
High 60.0% 61.7%
Low (4.0) 12.1
Median 20.6 25.0
Mean 19.2 30.9
Sage Transaction(3)
Class A 49.2% 49.2%
Class B 86.2 86.2
Hypothetical Blended Price 71.4 71.4
- -------------------------------------------------------------------------------------------
</TABLE>
- ------------------
(1) Source: Securities Data Company for U.S. completed going-private,
all-cash consideration transactions with a transaction value over $100
million for the period January 1, 1997 to April 30, 1999.
(2) Source: Securities Data Corporation for U.S. minority buy-in
transactions with a transaction value greater than $200 million from
January 1, 1997 to April 30, 1999.
(3) Premiums based on market prices as of September 9, 1999.
26
<PAGE> 40
B
<PAGE> 41
[BEAR STEARNS LETTERHEAD]
SECTION 4-B
DISCOUNTED CASH FLOW ANALYSIS
<PAGE> 42
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
METHODOLOGY
|X| Analyzed Company-provided projections for 2000 to 2006
- Performed sensitivity analysis based on revised Management
projections
|X| Discounted unlevered after-tax free cash flows
|X| Calculated terminal value after 7 years using perpetuity growth rate
methodology and terminal multiple methodology
|X| Used discount rates of between 12.0% and 16.0% as weighted average cost
of capital (WACC)
- Using the Capital Asset Pricing Model (CAPM) for selected
companies comparable to Sage indicated a discount rate of
12.0%-14.0%
- A higher cost of capital for Sage may be appropriate based on
company specific factors and current VNS industry environment
27
<PAGE> 43
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
DISCOUNTED CASH FLOW ANALYSIS--MANAGEMENT PLAN
<TABLE>
<CAPTION>
PROJECTED UNLEVERED FREE CASH FLOW ($ IN MILLIONS, EXCEPT PER SHARE DATA)
====================================================================================================================================
FISCAL YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005 2006
------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues $ 998.5 $1,047.9 $1,098.8 $1,155.9 $1,213.2 $1,274.2 $1,338.9
% growth 4.7% 4.9% 4.9% 5.2% 5.0% 5.0% 5.1%
EBITDA $ 108.7 $ 120.5 $ 123.5 $ 123.1 $ 127.5 $ 132.4 $ 138.7
% margin 10.9% 11.5% 11.2% 10.6% 10.5% 10.4% 10.4%
Depreciation & amortization $ (14.5) $ (15.9) $ (17.0) $ (18.1) $ (16.8) $ (15.6) $ (15.2)
------- -------- -------- -------- -------- -------- --------
EBIT $ 94.2 $ 104.6 $ 106.5 $ 105.0 $ 110.7 $ 116.8 $ 123.5
Taxes @ 38.5% (36.3) (40.3) (41.0) (40.5) (42.7) (45.0) (47.6)
------- -------- -------- -------- -------- -------- --------
UNLEVERED NET INCOME $ 57.9 $ 64.3 $ 65.5 $ 64.6 $ 68.1 $ 71.8 $ 76.0
Plus: Depreciation & amortization $ 14.5 $ 15.9 $ 17.0 $ 18.1 $ 16.8 $ 15.6 $ 15.2
Less: Capital expenditures (19.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0)
Less: Change in Working Capital 2.9 1.9 1.7 2.0 0.4 0.4 0.5
------- -------- -------- -------- -------- -------- --------
UNLEVERED FREE CASH FLOW $ 56.3 $ 67.1 $ 69.2 $ 69.7 $ 70.3 $ 72.8 $ 76.7
======= ======== ======== ======== ======== ======== ========
% growth - 19.1% 3.1% 0.7% 0.9% 3.6% 5.2%
PV OF UNLEVERED FREE CASH FLOW $ 49.4 $ 51.7 $ 46.7 $ 41.3 $ 36.5 $ 33.2 $ 30.7
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS--PERPETUAL GROWTH RATE AND WACC
=======================================================================================
PERPETUAL GROWTH RATE
------------------------------------------------------
0.0% 1.0% 2.0% 3.0% 4.0%
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
12.0% DISCOUNT RATE
Implied equity value
per share $21.03 $21.84 $22.81 $23.99 $25.48
Implied Terminal
Trailing EBITDA multiple 4.6x 5.0x 5.6x 6.3x 7.1x
14.0% DISCOUNT RATE
Implied equity value
per share $18.57 $19.10 $19.71 $20.44 $21.31
Implied Terminal
Trailing EBITDA multiple 3.9x 4.3x 4.7x 5.1x 5.7x
16.0% DISCOUNT RATE
Implied equity value
per share $16.73 $17.09 $17.50 $17.98 $18.53
Implied Terminal
Trailing EBITDA multiple 3.4x 3.7x 4.0x 4.3x 4.7x
- ---------------------------------------------------------------------------------------
</TABLE>
28
<PAGE> 44
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
DISCOUNTED CASH FLOW ANALYSIS--SENSITIVITY TABLES
<TABLE>
<CAPTION>
PERPETUITY GROWTH RATE METHODOLOGY(1)
==================================================================================================
CHANGE IN EBITDA
MARGIN VS.
MANAGEMENT(2) CHANGE IN REVENUE GROWTH VS. MANAGEMENT(2)
------------- ----------------------------------------------------------------------
(5.0%) (2.5%) 0.0% +2.5% +5.0%
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(2%) $13.40 $14.86 $16.45 $18.35 $20.42
(1) 14.40 16.01 17.77 19.87 22.16
0 15.41 17.17 19.10 21.39 23.91
+1 16.41 18.33 20.42 22.91 25.65
+2 17.42 19.48 21.74 24.44 27.39
----------------------------------------------------------------------
</TABLE>
TERMINAL MULTIPLE METHODOLOGY(3)
<TABLE>
<CAPTION>
==================================================================================================
CHANGE IN EBITDA
MARGIN VS.
MANAGEMENT(2) CHANGE IN REVENUE GROWTH VS. MANAGEMENT(2)
------------- ----------------------------------------------------------------------
(5.0%) (2.5%) 0.0% +2.5% +5.0%
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(2%) $13.52 $14.85 $16.29 $18.01 $19.89
(1) 14.44 15.90 17.50 19.40 21.47
0 15.36 16.96 18.71 20.78 23.05
+1 16.28 18.02 19.91 22.17 24.63
+2 17.21 19.08 21.12 23.55 26.22
----------------------------------------------------------------------
</TABLE>
Management Projections
- ----------------
Source: Sage Projections.
(1) Based on a WACC of 14.0% and perpetuity growth rate of 1.0%.
(2) Revenue growth rate differences with Management projections are
as shown for the 2000-2006 period. EBITDA margin differences
with Management projections are as shown for the period
2003-2006. EBITDA margin differences with Management projections
for 2000, 2001 and 2002 are one-fourth, one-half and
three-fourths of the differences as shown, respectively.
(3) Based on a WACC of 14.0% and trailing terminal EBITDA multiple
of 4.0x.
29
<PAGE> 45
C
<PAGE> 46
[BEAR STEARNS LETTERHEAD]
SECTION 4-C
COMPARABLE COMPANY ANALYSIS
<PAGE> 47
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
METHODOLOGY
|X| Developed a set of public companies comparable to Sage after reviewing
the following factors, among others:
- Business comparability
- Relative size of market capitalization/liquidity
- Growth parameters
- Operating margins
- Other relevant business and financial characteristics
|X| The set of comparable companies include: Natrol, Nature's Sunshine,
NBTY, Nu Skin, Nutraceutical, Rexall Sundown, Twinlab, USANA and Weider
Nutrition
|X| Examined various valuation multiples, including: Enterprise value/Sales,
Enterprise value/EBITDA, Enterprise value/EBIT and P/E for the latest
twelve months and the projected calendar years 1999 and 2000, where
available
|X| Source of earnings forecasts for comparable companies are consensus Wall
Street estimates
30
<PAGE> 48
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SUMMARY ANALYSIS OF SELECTED COMPARABLE COMPANIES(1)
ENTERPRISE VALUE/LTM EBITDA
<TABLE>
<CAPTION>
At Market
-------------------------------
At Hypothetical
Transaction Class A Blend Class B NBTY TWLB RXSD WNI HMEAN(2) NUTR NTOL NUS USNA NATR
----------- ------- ----------- ------- ---- ---- ---- --- ------- ---- ---- --- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAGE 4.8x 2.7x 2.1x 1.7x
COMPARABLE
COMPANIES 11.1x 8.1x 6.9x 5.1x 5.1x 5.0x 4.7x 4.4x 3.5x 3.4x
</TABLE>
ENTERPRISE VALUE/CALENDAR YEAR 1999E EBITDA
<TABLE>
<CAPTION>
At Market
---------------------------------
At Hypothetical
Transaction Class A Blend Class B NBTY TWLB RXSD HMEAN(2) WNI NUS NTOL USNA NATR NUTR
----------- ------- -------- ------- ---- ---- ---- ------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAGE 4.6x 2.6x 2.0x 1.7x
COMPARABLE
COMPANIES 10.6x 8.7x 6.5x 5.5x 5.3x 4.9x 4.5x 3.3x NA NA
</TABLE>
- -----------
(1) Market prices as of January 19, 2000 except Sage "At Market" prices which
are as of September 9, 1999.
(2) Harmonic mean; excludes Sage.
31
<PAGE> 49
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SUMMARY ANALYSIS OF SELECTED COMPARABLE COMPANIES (CONT.)(1)
ENTERPRISE VALUE/CALENDAR YEAR 2000E EBITDA
<TABLE>
<CAPTION>
==============================================================================================================================
AT MARKET
-------------------------------
AT HYPOTHETICAL
TRANSACTION CLASS A BLEND CLASS B TWLB RXSD WNI HMEAN(2) NUS USNA NTOL NATR NBTY NUTR
----------- ------- ------------ ------- ---- ---- --- ----- --- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAGE 4.4x 2.5x 1.9x 1.6x
COMPARABLE
COMPANIES 7.9x 5.5x 5.1x 4.4x 4.3x 2.4x N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(1) Market prices as of January 19, 2000 except Sage "At Market" prices which
are as of September 9, 1999.
(2) Harmonic mean; excludes Sage.
32
<PAGE> 50
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SUMMARY ANALYSIS OF SELECTED COMPARABLE COMPANIES (CONT.)(1)
PRICE/LTM EARNINGS
================================================================================
<TABLE>
<CAPTION>
Sage Comparable Companies
---------------------------------------- ----------------------------------------------------------------
At Market
--------------------------
At Class Hypothetical Class HMEAN
Transactions A Blend B NBTY TWLB WNI RXSD (2) NTOL NUTR NUS NATR USNA
------------ ----- ------------ ----- ---- ----- ----- ---- ----- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10.7x 7.2x 6.2x 5.6x 29.9x 18.9x 13.8x 13.1x 11.0x 10.4x 9.6x 8.2x 7.9x 7.4x
</TABLE>
- --------------------------------------------------------------------------------
PRICE/CALENDAR YEAR 1999E EARNINGS
================================================================================
<TABLE>
<CAPTION>
Sage Comparable Companies
---------------------------------------- ----------------------------------------------------------------
At Market
--------------------------
At Class Hypothetical Class HMEAN
Transactions A Blend B NBTY TWLB WNI RXSD (2) NTOL NUS NATR USNA NUTR
------------ ----- ------------ ----- ---- ----- ----- ---- ----- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9.6x 6.5x 5.6x 5.0x 27.1x 22.5x 15.3x 11.7x 9.9x 9.9x 9.3x 8.8x 7.3x N/A
</TABLE>
- ----------------
(1) Market prices as of January 19, 2000 except Sage "At Market" prices which
are as of September 9, 1999.
(2) Harmonic mean; excludes Sage.
33
<PAGE> 51
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SUMMARY ANALYSIS OF SELECTED COMPARABLE COMPANIES (CONT.)(1)
PRICE/CALENDAR YEAR 2000E EARNINGS
================================================================================
<TABLE>
<CAPTION>
Sage Comparable Companies
---------------------------------------- ----------------------------------------------------------------
At Market
--------------------------
At Class Hypothetical Class HMEAN
Transactions A Blend B NBTY TWLB WNI RXSD (2) NTOL NUTR NUS NATR USNA
------------ ----- ------------ ----- ---- ----- ----- ---- ----- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9.5x 6.5x 5.5x 5.0x NA 16.9x NA NA 8.0x NA NA 8.4x 7.7x 5.3x
</TABLE>
- --------------------------------------------------------------------------------
- ----------------
(1) Market prices as of January 19, 2000 except Sage "At Market" prices which
are as of September 9, 1999.
(2) Harmonic Mean; excludes Sage.
34
<PAGE> 52
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SUMMARY ANALYSIS OF SELECTED COMPARABLE COMPANIES (CONT.)
<TABLE>
<CAPTION>
====================================================================================================================================
SAGE
----------------------
AT NATURE'S NUTRA- REXALL WEIDER
TRANSACTION MARKET(4) NATROL SUNSHINE NBTY NU SKIN CEUTICAL SUNDOWN TWINLAB USANA NUTRITION
----------- --------- ------ -------- ---- ------- -------- ------- ------- ----- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Enterprise Value(1) $ 481 $ 208 $ 67 $ 131 $1,090 $ 836 $ 86 $ 742 $ 290 $ 65 $ 188
Equity Value(1) 591 312 89 152 887 802 48 761 251 50 85
LTM Revenues(2) 926 926 76 287 631 924 107 616 318 129 363
LTM Net Income(2) 51 51 9 20 30 100 5 60 14 9 6
Estimated Value of NA 130 44 114 621 241 22 365 151 20 30
Public Float(3)
Insider Ownership(3) 59%(5) 59%(5) 51% 25% 30% 70% 54% 52% 40% 60% 65%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
|X| Insiders own a significant share of the common equity of many comparable
companies
- -------------
(1) Market prices as of January 19, 2000 except Sage "Market" prices which are
as of September 9, 1999. Sage "At Transaction" consideration of $17.81 per
share.
(2) Per companies' public documents and press releases.
(3) Based on companies' proxy statement.
(4) Using a hypothetical blend of Class A and Class B stock prices.
(5) 59% based on total Class A and Class B primary shares and 52% based on
total Class A and Class B gross diluted shares.
35
<PAGE> 53
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
STOCK MARKET VALUATION OF COMPARABLE VNS COMPANIES
<TABLE>
<CAPTION>
VALUATION MULTIPLES SUMMARY(1) ($ IN MILLIONS, EXCEPT PER SHARE DATA)
====================================================================================================================================
SAGE AT NATURE'S NUTRA- REXALL WEIDER HARMONIC MEDIAN
TRANSACTION NATROL SUNSHINE NBTY NU SKIN CEUTICAL(2) SUNDOWN TWINLAB USANA NUTRITION MEAN(3) (3)
----------- ------ -------- ---- ------- ----------- ------- ------- ----- --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock price @
1/19/00 $ 17.81 $ 6.63 $ 8.88 $ 12.75 $ 9.19 $ 4.06 $ 11.81 $ 8.09 $ 4.94 $ 3.38
52 week high 9.75 15.25 13.00 25.25 6.50 22.88 14.75 18.00 7.56
52 week low 5.69 6.94 4.44 8.44 3.19 9.50 6.50 3.81 3.00
ENTERPRISE VALUE
MULTIPLES
Enterprise value $ 481 $ 67 $ 131 $ 1,090 $ 836 $ 86 $ 742 $ 290 $ 65 $ 188
LTM revenue 0.52x 0.88x 0.46x 1.73x 0.91x 0.80x 1.21x 0.91x 0.50x 0.52x 0.74x 0.88x
CY 1999
revenue 0.50 0.81 NA 1.71 0.93 NA 1.19 0.91 0.49 0.56 0.81 0.91
CY 2000
revenue 0.48 NA NA NA 0.82 NA 1.05 0.83 0.40 0.54 0.65 0.82
LTM EBITDA 4.8 x 4.7 x 3.4 x 11.1 x 4.4 x 5.0 x 6.9 x 8.1 x 3.5 x 5.1 x 5.1 x 5.0 x
CY 1999
EBITDA 4.6 4.5 NA 10.6 4.9 NA 6.5 8.7 3.3 5.3 5.5 5.3
CY 2000
EBITDA 4.4 NA NA NA 4.3 NA 5.5 7.9 2.4 5.1 4.4 5.1
LTM EBIT 5.8 x 5.2 x 4.2 x 16.0 x 5.2 x 7.7 x 7.9 x 10.0 x 4.5 x 8.7 x 6.5 x 7.7 x
CY 1999 EBIT 5.3 4.8 NA 15.2 5.9 NA 7.5 10.8 4.1 8.8 6.8 7.5
CY 2000 EBIT 5.1 NA NA NA 5.0 NA 6.3 9.6 3.0 8.3 5.5 6.3
PRICE/EARNINGS
MULTIPLES
Equity value $ 591 $ 89 $ 152 $ 887 $ 802 $ 48 $ 761 $ 251 $ 50 $ 85
LTM EPS 10.7 x 10.4 x 7.9 x 29.9 x 8.2 x 9.6 x 13.1 x 18.9 x 7.4 x 13.8 x 11.0 x 10.4 x
CY 1999 EPS 9.6 9.9 8.8 27.1 9.3 NA 13.1 22.5 7.3 15.3 11.7 11.5
CY 2000 EPS 9.5 NA 7.7 NA 8.4 NA NA 16.9 5.3 NA 8.0 8.1
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------
(1) Based on public filings and press releases by companies, Wall Street
Research and First Call earnings estimates. Stock prices as of January 19,
2000.
(2) Results are based on fiscal year end (September 30) data.
(3) Excludes Sage.
36
<PAGE> 54
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
FINANCIAL PERFORMANCE OF COMPARABLE VNS COMPANIES
GROWTH RATE AND MARGIN COMPARISON(1)
<TABLE>
<CAPTION>
====================================================================================================================================
NATURE'S NUTRA- REXALL WEIDER
SAGE NATROL SUNSHINE NBTY NU SKIN CEUTICAL(2)SUNDOWN TWINLAB USANA NUTRITION MEAN(3) MEDIAN(3)
---- ------ -------- ---- -------------------------- ------- ----- --------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH RATES
Revenue growth
CAGR 1995-1998 21.0% 42.5% 12.9% 32.2% NA 18.5% 44.2% 30.9% 70.5% 27.4% 33.2% 31.3%
CAGR 1998-1999E 10.1 20.5 NA 8.9 (1.3) NA 12.9 (4.2) 8.4 9.8 7.9 8.9
CAGR 1998-2000E 7.3 NA NA NA 5.6 NA 13.3 2.6 14.7 6.9 8.6 6.9
EBITDA growth
CAGR 1995-1998 33.7% 51.0% 25.5% 53.2% NA 17.9% 58.1% 27.8% 68.2% 12.1% 37.5% 27.8%
CAGR 1998-1999E 11.9 17.7 NA (1.1) (18.0) NA 1.5 (51.0) 6.0 (1.8) (6.6) (1.1)
CAGR 1998-2000E 7.5 NA NA NA (3.0) NA 9.5 (26.8) 19.5 1.5 0.2 1.5
EPS growth
CAGR 1995-1998 31.9% 22.9% 25.7% 35.1% NA NA% 76.6% 16.9% 50.8% NA 38.0% 30.4%
CAGR 1998-1999E 13.0 6.0 NA (16.3) (21.5) NA 0.2 (63.1) (0.3) (34.7) (18.5) (16.3)
CAGR 1998-2000E 8.2 NA NA NA (3.1) NA 8.4 (35.5) 17.4 (15.2) (5.6) (3.1)
MARGINS
EBITDA
Average (1996-1998) 12.0% 19.3% 12.6% 17.4% 20.6 18.0% 20.1% 22.9% 15.3% 14.7% 17.2% 17.7%
CY 1998 10.9 18.7 13.8 17.6 22.7 18.5 20.2 20.5 15.3 11.8 16.9 18.1
CY 1999 11.1 18.3 NA 16.0 18.8 NA 18.2 10.5 15.0 10.6 15.3 16.0
CY 2000 10.9 NA NA NA 21.6 NA 18.9 10.4 16.6 10.7 15.6 16.6
EBIT
Average (1996-1998) 10.3% 18.1% 11.1% 14.0% 19.3 14.0% 18.3% 21.7% 13.0% 11.6% 14.9% 14.0%
CY 1998 9.0 17.5 12.2 13.4 21.0 14.0 18.4 19.0 12.5 8.0 14.4 13.7
CY 1999 9.6 17.0 NA 11.3 15.5 NA 15.9 8.4 11.9 6.4 12.4 11.9
CY 2000 9.4 NA NA NA 18.3 NA 16.5 8.6 13.5 6.5 12.7 13.5
Net Income
Average (1996-1998) 6.6% 11.0% 7.3% 7.9% 12.2 4.6% 12.1% 10.7% 8.1% 5.4% 8.2% 8.0%
CY 1998 5.6 11.0 7.9 6.5 13.1 6.3 12.0 10.3 7.8 3.2 8.0 7.8
CY 1999 5.9 11.2 NA 5.1 10.6 NA 10.1 4.0 7.3 1.9 7.2 7.3
CY 2000 5.8 NA NA NA 12.7 NA 10.4 4.1 8.3 2.0 7.5 8.3
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ------------
(1) Based on public filings and press releases by companies, Wall Street
research and First Call earnings estimates.
(2) Results are based on fiscal year end (September 30) data.
(3) Excludes Sage.
37
<PAGE> 55
D
<PAGE> 56
[BEAR STEARNS LETTERHEAD]
SECTION 4-D
PUBLIC SHAREHOLDER VALUATION
<PAGE> 57
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
METHODOLOGY
|X| A stream of annual dividends is projected for 3-5 years based on the current
indicated annual dividend per share
- This dividend stream is discounted to its present value using the cost
of equity capital for the Company
|X| The value of the stock at the end of the projection period is estimated
based on a range of P/E multiples for the stock applied to forecasted EPS
|X| The sum of the present value of the dividend stream and the present value of
the stock at the end of the projection period provides an estimated current
value for the stock
38
<PAGE> 58
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PUBLIC SHAREHOLDER VALUATION
<TABLE>
<CAPTION>
PUBLIC SHAREHOLDER VALUATION
==================================================================================================
FISCAL YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
2000 2001 2002 2003 2004
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Indicated annual dividend(1) $0.60 $0.60 $0.60 $0.60 $0.60
Present value of dividends 0.52 0.45 0.39 0.34 0.30
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS--P/E MULTIPLE AND COST OF EQUITY CAPITAL (3-YEAR EXIT)
=====================================================================================================
P/E MULTIPLE
COST OF EQUITY CAPITAL 8.0X 10.0X 12.0X 14.0X 16.0X
<S> <C> <C> <C> <C> <C>
12.0% $13.61 $16.65 $19.69 $22.73 $25.78
13.0 13.26 16.23 19.19 22.15 25.11
14.0 12.93 15.82 18.70 21.58 24.47
15.0 12.61 15.42 18.23 21.04 23.85
16.0 12.30 15.04 17.78 20.51 23.25
17.0 12.00 14.67 17.34 20.00 22.67
18.0 11.71 14.31 16.91 19.51 22.11
19.0 11.43 13.96 16.50 19.04 21.57
20.0 11.16 13.63 16.10 18.58 21.05
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS--P/E MULTIPLE AND COST OF EQUITY CAPITAL (5-YEAR EXIT)
======================================================================================================
P/E MULTIPLE
COST OF EQUITY CAPITAL 8.0X 10.0X 12.0X 14.0X 16.0X
<S> <C> <C> <C> <C> <C>
12.0% $12.38 $14.93 $17.48 $20.04 $22.59
13.0 11.88 14.32 16.76 19.21 21.65
14.0 11.41 13.75 16.08 18.42 20.76
15.0 10.96 13.20 15.43 17.67 19.91
16.0 10.53 12.68 14.82 16.96 19.10
17.0 10.13 12.18 14.23 16.29 18.34
18.0 9.74 11.71 13.68 15.64 17.61
19.0 9.38 11.26 13.15 15.03 16.92
20.0 9.03 10.84 12.64 14.45 16.26
- ------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
(1) Based on 1998 annual and 1999 quarterly dividends to date and revised
Management forecast.
39
<PAGE> 59
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
ROLLING LTM P/E MULTIPLES PRIOR TO TRANSACTION ANNOUNCEMENT
1993-PRESENT(1)(2)
================================================================================
<TABLE>
<CAPTION>
P/E P/E
SAGE A SAGE B
<S> <C> <C>
3/31/93 10.6x #N/A
6/30/93 12.5x #N/A
9/30/93 10.1x #N/A
12/31/93 12.0x #N/A
3/31/94 15.0x #N/A
6/30/94 13.2x #N/A
9/30/94 10.2x #N/A
12/31/94 11.2x #N/A
3/31/95 10.2x #N/A
6/30/95 11.5x #N/A
9/30/95 15.1x #N/A
12/31/95 13.0x #N/A
3/31/96 14.6x #N/A
6/30/96 18.1x #N/A
9/30/96 13.3x #N/A
12/31/96 23.0x #N/A
3/31/97 12.1x #N/A
6/30/97 10.1x #N/A
9/30/97 15.3x #N/A
12/31/97 12.1x 12.4x
3/31/98 13.7x 12.9x
6/30/98 13.0x 10.9x
9/30/98 5.5x 4.7x
12/31/98 8.9x 7.1x
3/31/99 8.2x 6.3x
6/30/99 7.8x 6.2x
</TABLE>
- --------------------------------------------------------------------------------
- -----------
(1) Source: FactSet Research Systems. Prior to Transaction announcement.
(2) In December 1997 Sage split its common equity into two classes of
stock--Class A voting and Class B non-voting.
40
<PAGE> 60
E
<PAGE> 61
[BEAR STEARNS LETTERHEAD]
SECTION 4-E
PRECEDENT M&A TRANSACTIONS
<PAGE> 62
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PRECEDENT M&A TRANSACTIONS
|X| We analyzed the terms and valuation multiples of 12 M&A transactions in
the VNS sector and 2 in the Multi-level Marketing sector
- Limited public disclosure on certain transactions
|X| Most of the transactions occurred during a much more robust period for
valuations of VNS companies
- Only Royal Numico/GNC and Rexall Sundown/Met-Rx transactions
have occurred since major multiple contraction in mid/late 1998
- Refer to Appendix C for more information
|X| Further, there were no sizable transactions for companies which were
both (I) in the VNS sector and (ii) operated under the MLM business
model
|X| Accordingly, we have put little weight on this analysis in reaching our
valuation conclusion for this transaction
41
<PAGE> 63
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
THE VNS SECTOR HAS SEEN THREE DISTINCT VALUATION PERIODS OVER TIME
|X| Period prior to October 1994: DSHEA Act of October 1994 classified
dietary supplements as foods instead of drugs, thus eliminating
extensive clinical trials
|X| October 1994 to July 1998: Robust growth in revenues, earnings and
valuation
|X| August 1998 to Present: Downward revisions in growth expectations and
valuation
WEEKLY STOCK PRICES: 1/22/93 TO 1/19/00
================================================================================
<TABLE>
<CAPTION>
Date GNCI RXSD Annotation Annotation
- -------- ------ ----- ---------- ----------
<S> <C> <C> <C> <C>
1/22/93 5.5000 #N/A
1/25/93 5.3750 #N/A
1/26/93 5.3125 #N/A
1/27/93 5.1875 #N/A
1/28/93 5.3125 #N/A
1/29/93 5.3125 #N/A
2/1/93 5.8125 #N/A
2/2/93 5.6250 #N/A
2/3/93 5.7500 #N/A
2/4/93 5.6875 #N/A
2/5/93 5.6875 #N/A
2/8/93 5.8125 #N/A
2/9/93 5.8125 #N/A
2/10/93 5.7813 #N/A
2/11/93 5.6250 #N/A
2/12/93 5.8125 #N/A
2/15/93 5.8125 #N/A
2/16/93 5.1250 #N/A
2/17/93 4.9375 #N/A
2/18/93 5.0000 #N/A
2/19/93 4.8750 #N/A
2/22/93 5.0625 #N/A
2/23/93 5.0625 #N/A
2/24/93 5.4375 #N/A
2/25/93 5.3750 #N/A
2/26/93 5.3750 #N/A
3/1/93 5.7500 #N/A
3/2/93 5.6875 #N/A
3/3/93 5.6875 #N/A
3/4/93 5.7500 #N/A
3/5/93 5.8125 #N/A
3/8/93 6.0000 #N/A
3/9/93 6.5000 #N/A
3/10/93 6.6875 #N/A
3/11/93 7.1563 #N/A
3/12/93 6.9375 #N/A
3/15/93 7.0000 #N/A
3/16/93 6.5625 #N/A
3/17/93 6.5000 #N/A
3/18/93 6.3125 #N/A
3/19/93 6.3750 #N/A
3/22/93 6.4063 #N/A
3/23/93 6.5000 #N/A
3/24/93 6.4375 #N/A
3/25/93 6.4688 #N/A
3/26/93 6.3750 #N/A
3/29/93 6.4063 #N/A
3/30/93 6.5625 #N/A
3/31/93 6.5313 #N/A
4/1/93 6.6250 #N/A
4/2/93 6.5000 #N/A
4/5/93 6.4375 #N/A
4/6/93 6.4375 #N/A
4/7/93 6.5625 #N/A
4/8/93 6.5000 #N/A
4/9/93 6.5000 #N/A
4/12/93 6.5938 #N/A
4/13/93 6.7500 #N/A
4/14/93 6.9688 #N/A
4/15/93 7.2500 #N/A
4/16/93 7.3125 #N/A
4/19/93 6.6250 #N/A
4/20/93 6.1250 #N/A
4/21/93 6.3125 #N/A
4/22/93 6.1875 #N/A
4/23/93 6.1875 #N/A
4/26/93 6.1250 #N/A
4/27/93 6.3125 #N/A
4/28/93 6.1250 #N/A
4/29/93 6.1250 #N/A
4/30/93 6.2500 #N/A
5/3/93 6.3750 #N/A
5/4/93 6.4375 #N/A
5/5/93 6.3125 #N/A
5/6/93 6.1875 #N/A
5/7/93 6.1875 #N/A
5/10/93 6.2500 #N/A
5/11/93 6.3125 #N/A
5/12/93 6.6875 #N/A
5/13/93 6.6875 #N/A
5/14/93 7.1875 #N/A
5/17/93 7.2500 #N/A
5/18/93 7.1875 #N/A
5/19/93 8.0625 #N/A
5/20/93 8.5000 #N/A
5/21/93 8.5000 #N/A
5/24/93 8.2500 #N/A
5/25/93 8.1875 #N/A
5/26/93 8.0000 #N/A
5/27/93 7.9375 #N/A
5/28/93 7.9375 #N/A
5/31/93 7.9375 #N/A
6/1/93 8.3125 #N/A
6/2/93 8.7500 #N/A
6/3/93 9.0625 #N/A
6/4/93 9.0000 #N/A
6/7/93 8.5625 #N/A
6/8/93 8.6250 #N/A
6/9/93 8.8125 #N/A
6/10/93 8.8125 #N/A
6/11/93 8.9375 #N/A
6/14/93 8.8438 #N/A
6/15/93 8.0625 #N/A
6/16/93 8.1563 #N/A
6/17/93 8.1875 #N/A
6/18/93 8.0625 2.7083
6/21/93 7.9375 2.6667
6/22/93 7.7500 2.6250
6/23/93 7.6250 2.5417
6/24/93 8.0000 2.5833
6/25/93 8.1250 2.5000
6/28/93 8.1875 2.5417
6/29/93 8.3750 2.6458
6/30/93 8.5313 2.6667
7/1/93 8.6250 2.7500
7/2/93 8.5625 2.7083
7/5/93 8.5625 2.7083
7/6/93 8.6875 2.7917
7/7/93 8.3750 2.7917
7/8/93 8.5625 2.8750
7/9/93 8.4375 2.7083
7/12/93 8.6250 2.7500
7/13/93 8.8125 2.7500
7/14/93 9.4375 2.6667
7/15/93 9.2500 2.7500
7/16/93 9.2500 2.7083
7/19/93 9.3125 2.7917
7/20/93 9.3750 2.8333
7/21/93 9.5000 2.7500
7/22/93 9.4375 2.7500
7/23/93 9.5000 2.7500
7/26/93 9.4375 2.6667
7/27/93 9.3750 2.6667
7/28/93 9.5625 2.7917
7/29/93 9.3750 2.7083
7/30/93 9.5000 2.7917
8/2/93 9.3750 2.8333
8/3/93 9.4375 2.9792
8/4/93 9.4375 3.0417
8/5/93 9.5625 3.0625
8/6/93 9.5000 3.0417
8/9/93 10.2500 3.1250
8/10/93 10.5938 3.0833
8/11/93 11.2813 3.1667
8/12/93 11.1250 3.3750
8/13/93 10.6875 3.4167
8/16/93 10.2500 3.5417
8/17/93 10.5000 3.7917
8/18/93 10.8438 3.5833
8/19/93 10.8125 3.5417
8/20/93 10.6563 3.5833
8/23/93 10.9375 3.6250
8/24/93 11.1250 3.5000
8/25/93 11.3750 3.5208
8/26/93 11.7500 3.6667
8/27/93 11.8125 3.5833
8/30/93 11.7500 3.6667
8/31/93 11.5000 3.6250
9/1/93 11.4375 3.7083
9/2/93 11.5000 3.7917
9/3/93 11.5000 3.7500
9/6/93 11.5000 3.7500
9/7/93 11.3125 3.6875
9/8/93 11.1563 3.6875
9/9/93 11.2500 3.6667
9/10/93 11.2500 3.7500
9/13/93 11.1875 3.6250
9/14/93 11.1875 3.6667
9/15/93 11.6250 3.7917
9/16/93 12.2500 4.0000
9/17/93 12.0938 3.9167
9/20/93 12.1875 4.0833
9/21/93 12.1250 4.2083
9/22/93 12.6250 4.1458
9/23/93 13.1875 4.1667
9/24/93 12.3750 4.1250
9/27/93 12.7500 4.1667
9/28/93 12.9375 4.2500
9/29/93 12.9375 4.2917
9/30/93 12.3750 4.6667
10/1/93 12.1250 4.6667
10/4/93 12.0000 4.7500
10/5/93 11.6875 5.0000
10/6/93 12.7500 5.2917
10/7/93 13.5000 5.1667
10/8/93 13.2500 5.1667
10/11/93 13.1250 5.2500
10/12/93 12.7500 5.3333
10/13/93 12.7500 5.6250
10/14/93 12.8750 5.7917
10/15/93 13.1250 6.0000
10/18/93 13.0000 6.3750
10/19/93 13.0000 6.2500
10/20/93 12.8750 5.4167
10/21/93 12.7500 5.4583
10/22/93 12.8750 5.5000
10/25/93 13.0000 5.6667
10/26/93 12.0625 5.7500
10/27/93 13.1250 5.5000
10/28/93 13.1250 4.8125
10/29/93 13.2500 4.9583
11/1/93 14.2500 5.0417
11/2/93 13.9375 5.1667
11/3/93 12.8750 5.2500
11/4/93 13.0000 4.5833
11/5/93 12.6250 4.6667
11/8/93 13.3750 4.6667
11/9/93 13.1250 4.5833
11/10/93 13.0000 4.8750
11/11/93 12.9375 5.0000
11/12/93 12.8750 4.7500
11/15/93 12.7500 4.4167
11/16/93 12.3750 4.3333
11/17/93 12.5625 4.5000
11/18/93 12.3750 4.3333
11/19/93 12.0000 4.2917
11/22/93 10.8750 3.8333
11/23/93 12.4375 3.8333
11/24/93 13.1250 4.0000
11/25/93 13.1250 4.0000
11/26/93 13.0000 4.1667
11/29/93 13.2500 4.1667
11/30/93 13.3750 4.1667
12/1/93 13.6250 3.9167
12/2/93 13.7500 3.9167
12/3/93 13.6250 3.9167
12/6/93 14.0000 3.6667
12/7/93 14.3750 3.7500
12/8/93 14.5000 3.7500
12/9/93 14.5000 3.7500
12/10/93 14.2500 3.7500
12/13/93 14.5000 3.5833
12/14/93 14.7500 3.5833
12/15/93 14.3750 3.6667
12/16/93 14.5625 4.0417
12/17/93 14.5000 4.4167
12/20/93 14.8125 4.6667
12/21/93 14.7500 4.5000
12/22/93 15.1250 4.4167
12/23/93 14.6875 4.7500
12/24/93 14.6875 4.7500
12/27/93 14.2500 4.8333
12/28/93 14.5625 4.8333
12/29/93 14.1875 4.8333
12/30/93 13.9375 4.8750
12/31/93 14.2500 5.0000
1/3/94 13.7500 4.8333
1/4/94 13.8125 5.0000
1/5/94 14.0000 4.8333
1/6/94 14.2500 4.7500
1/7/94 14.1250 4.8333
1/10/94 13.9375 4.8333
1/11/94 13.6250 5.2083
1/12/94 13.6875 5.3333
1/13/94 14.0000 5.6667
1/14/94 13.6250 5.6667
1/17/94 13.7500 5.1667
1/18/94 13.8750 5.5000
1/19/94 14.1250 5.7500
1/20/94 13.7500 5.6667
1/21/94 13.8125 5.5000
1/24/94 13.5000 5.7500
1/25/94 13.3750 5.3333
1/26/94 13.5625 5.3333
1/27/94 13.6250 5.6667
1/28/94 13.6250 5.6667
1/31/94 12.8750 5.7500
2/1/94 13.7500 6.0000
2/2/94 13.7500 5.9167
2/3/94 14.0000 6.2500
2/4/94 14.1250 5.9167
2/7/94 14.0000 6.0000
2/8/94 14.2500 6.2500
2/9/94 14.8750 6.1667
2/10/94 15.0000 6.2500
2/11/94 14.6250 6.3333
2/14/94 14.7500 6.5000
2/15/94 14.4375 6.4167
2/16/94 14.8750 6.5417
2/17/94 15.5000 6.4167
2/18/94 16.0625 6.6667
2/21/94 16.0625 6.6667
2/22/94 15.5625 6.8333
2/23/94 15.2500 6.7500
2/24/94 14.6250 7.0000
2/25/94 14.3750 6.9583
2/28/94 14.6250 7.2500
3/1/94 15.0000 6.7500
3/2/94 14.6250 6.9167
3/3/94 15.0000 7.0833
3/4/94 14.8750 6.7500
3/7/94 15.1875 7.0833
3/8/94 15.3125 6.6667
3/9/94 15.3750 6.9583
3/10/94 14.5000 6.7500
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3/14/94 14.1250 6.6667
3/15/94 13.8125 6.5833
3/16/94 13.7500 6.4583
3/17/94 13.5000 6.5833
3/18/94 12.9375 6.5833
3/21/94 13.0000 6.9167
3/22/94 13.4375 7.0833
3/23/94 13.7500 6.5833
3/24/94 13.5625 6.5000
3/25/94 13.3750 6.0833
3/28/94 13.2500 5.9167
3/29/94 12.6250 5.7500
3/30/94 12.3750 5.7083
3/31/94 12.3750 5.5833
4/1/94 12.3750 5.5833
4/4/94 12.1250 5.3750
4/5/94 13.0625 5.5833
4/6/94 12.7500 5.5000
4/7/94 12.6875 4.5000
4/8/94 12.3750 4.0833
4/11/94 12.1250 3.5000
4/12/94 12.1875 3.8333
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4/14/94 11.3750 3.8333
4/15/94 11.3125 3.8333
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4/19/94 11.7500 3.6667
4/20/94 11.6250 3.6667
4/21/94 11.2500 3.6667
4/22/94 11.7500 3.5833
4/25/94 12.0000 3.2083
4/26/94 12.0625 3.3333
4/27/94 12.0625 3.3333
4/28/94 12.1250 3.3333
4/29/94 12.1250 3.1667
5/2/94 12.2500 3.2500
5/3/94 11.9375 3.2500
5/4/94 12.1250 3.2083
5/5/94 12.3750 3.5000
5/6/94 12.1250 3.7500
5/9/94 11.8750 4.0000
5/10/94 10.1250 3.5417
5/11/94 9.8125 3.5833
5/12/94 10.3750 3.5833
5/13/94 10.6250 3.5833
5/16/94 9.6250 3.5833
5/17/94 9.5938 3.1667
5/18/94 10.1250 2.9167
5/19/94 11.3125 3.1667
5/20/94 11.6250 3.2500
5/23/94 10.8125 3.3333
5/24/94 10.8750 3.3750
5/25/94 10.7500 3.4167
5/26/94 10.1875 3.3750
5/27/94 10.0625 3.4167
5/30/94 10.0625 3.4167
5/31/94 10.1250 3.3750
6/1/94 10.0000 3.2917
6/2/94 9.7500 3.3750
6/3/94 9.7500 3.4167
6/6/94 9.8750 3.4167
6/7/94 9.7500 3.5833
6/8/94 9.0000 3.2083
6/9/94 9.0625 3.1667
6/10/94 9.0000 3.2500
6/13/94 8.8750 3.1250
6/14/94 9.0625 3.2500
6/15/94 9.0000 3.0000
6/16/94 9.0000 3.1667
6/17/94 9.1250 3.0000
6/20/94 8.6250 3.0417
6/21/94 8.4375 2.9167
6/22/94 8.1250 3.1667
6/23/94 7.8750 2.8333
6/24/94 8.0000 2.9167
6/27/94 8.5000 2.9167
6/28/94 8.8125 2.9167
6/29/94 8.7500 2.9583
6/30/94 8.6250 2.6667
7/1/94 8.5000 2.7500
7/4/94 8.5000 2.7500
7/5/94 8.8125 2.5000
7/6/94 8.7500 2.8333
7/7/94 8.2500 2.6667
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7/11/94 8.1250 2.6667
7/12/94 8.5000 2.9167
7/13/94 10.0625 2.7917
7/14/94 10.2500 3.0000
7/15/94 9.3750 2.8750
7/18/94 9.1250 3.0000
7/19/94 9.1250 2.9583
7/20/94 8.4375 3.0833
7/21/94 8.2500 3.0833
7/22/94 8.5000 3.0000
7/25/94 9.2500 3.0833
7/26/94 9.2500 3.0000
7/27/94 9.2500 2.9583
7/28/94 10.0000 2.9167
7/29/94 9.7500 3.0833
8/1/94 9.8750 3.1667
8/2/94 10.1250 3.0833
8/3/94 9.8750 3.1667
8/4/94 10.1250 3.0000
8/5/94 9.5000 3.0000
8/8/94 9.5000 2.9167
8/9/94 9.6250 3.0833
8/10/94 10.0000 3.0417
8/11/94 9.5625 2.8333
8/12/94 9.6875 2.9167
8/15/94 10.0000 3.0000
8/16/94 11.1250 2.9167
8/17/94 11.1250 2.9167
8/18/94 11.2500 2.9167
8/19/94 11.5000 3.0417
8/22/94 11.5938 3.0833
8/23/94 11.5625 2.9167
8/24/94 11.3750 2.9167
8/25/94 10.9375 2.9167
8/26/94 11.3750 3.1667
8/29/94 11.6250 3.0833
8/30/94 11.5000 3.1667
8/31/94 11.2813 3.2500
9/1/94 11.2500 3.2083
9/2/94 10.9375 3.0833
9/5/94 10.9375 3.0833
9/6/94 10.3750 3.0833
9/7/94 10.5625 3.1250
9/8/94 10.9063 3.1667
9/9/94 10.7500 3.2083
9/12/94 10.5625 3.1250
9/13/94 10.3750 3.2083
9/14/94 10.5000 3.1250
9/15/94 10.8125 3.1250
9/16/94 11.0000 3.0833
9/19/94 11.1250 3.1667
9/20/94 11.6250 3.0417
9/21/94 11.1250 3.0417
9/22/94 10.8750 3.0000
9/23/94 10.6250 3.0000
9/26/94 10.7500 3.0833
9/27/94 10.6875 3.0000
9/28/94 10.3750 3.0000
9/29/94 10.7500 3.0833
9/30/94 11.1250 3.1875
10/3/94 11.0000 3.2083
10/4/94 11.5000 3.0833
10/5/94 11.5000 3.1250
10/6/94 11.2500 3.0833
10/7/94 11.3750 3.1250
10/10/94 11.4375 3.2917
10/11/94 11.3750 3.3125
10/12/94 11.5000 3.9167
10/13/94 11.1250 3.7917
10/14/94 11.3750 3.8750
10/17/94 11.5000 3.8333
10/18/94 11.1250 3.7917
10/19/94 11.2500 3.7500
10/20/94 11.1250 3.7083
10/21/94 12.0000 3.7083
10/24/94 12.8750 3.5417
10/25/94 12.5625 3.3750
10/26/94 12.8750 3.3542
10/27/94 12.8750 3.5000
10/28/94 12.5000 3.4167
10/31/94 12.7500 3.4792
11/1/94 13.5625 3.4167
11/2/94 13.5000 3.5833
11/3/94 13.4375 3.7917
11/4/94 13.5625 3.6875
11/7/94 13.4375 3.7500
11/8/94 13.5000 3.7917
11/9/94 14.1250 3.5833
11/10/94 13.7500 3.5833
11/11/94 13.6250 3.6250
11/14/94 14.0000 3.6250
11/15/94 14.1250 3.5417
11/16/94 13.8750 3.4583
11/17/94 13.1250 3.3542
11/18/94 13.6250 3.2917
11/21/94 13.7500 3.2500
11/22/94 13.6875 3.2500
11/23/94 13.4375 3.3333
11/24/94 13.4375 3.3333
11/25/94 13.6250 3.3750 13.6250 13.6250
11/28/94 13.6250 3.4167
11/29/94 14.3750 3.4167
11/30/94 14.6250 3.4167
12/1/94 14.8750 3.3750
12/2/94 14.9375 3.5000
12/5/94 14.6250 3.4792
12/6/94 14.2500 3.4167
12/7/94 13.9375 3.3750
12/8/94 13.2500 3.2083
12/9/94 13.6250 3.2083
12/12/94 13.5000 3.5833
12/13/94 13.0000 3.3750
12/14/94 13.6250 3.2917
12/15/94 13.5000 3.3333
12/16/94 13.5000 3.3333
12/19/94 13.5000 3.3333
12/20/94 13.6250 3.2500
12/21/94 13.7500 3.2500
12/22/94 14.0000 3.2500
12/23/94 14.2500 3.1250
12/26/94 14.2500 3.1250
12/27/94 14.6875 3.1667
12/28/94 14.5000 3.1250
12/29/94 14.3750 3.2500
12/30/94 14.5000 3.2500
1/2/95 14.5000 3.2500
1/3/95 14.1250 3.2500
1/4/95 14.0000 3.4583
1/5/95 13.5000 3.7917
1/6/95 13.3750 3.7500
1/9/95 13.4688 3.7500
1/10/95 13.0000 3.8333
1/11/95 13.4375 3.8333
1/12/95 13.0000 3.8125
1/13/95 13.1250 3.8333
1/16/95 12.8125 3.7917
1/17/95 12.8750 4.0417
1/18/95 12.7500 4.1250
1/19/95 12.8125 3.9792
1/20/95 12.6250 4.0000
1/23/95 12.1875 3.9167
1/24/95 12.5000 4.0417
1/25/95 12.5000 4.2917
1/26/95 12.5625 4.1667
1/27/95 11.8750 4.2500
1/30/95 11.5625 4.2083
1/31/95 12.2500 4.2083
2/1/95 12.1875 4.1250
2/2/95 12.3125 4.1667
2/3/95 12.5625 4.1250
2/6/95 12.6250 4.0833
2/7/95 12.3750 4.0000
2/8/95 12.6250 3.9583
2/9/95 12.6250 3.9583
2/10/95 12.7500 3.9583
2/13/95 12.7500 4.0833
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2/20/95 12.6250 4.0417
2/21/95 12.4375 4.0000
2/22/95 12.3750 3.9583
2/23/95 12.1250 3.8542
2/24/95 12.0000 3.6667
2/27/95 11.8750 3.6250
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3/1/95 11.8125 3.6667
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3/3/95 11.7500 3.5833
3/6/95 11.6875 3.5417
3/7/95 11.8750 3.5000
3/8/95 11.8125 3.5000
3/9/95 12.0000 3.5833
3/10/95 11.9375 3.5000
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3/14/95 13.0000 3.4583
3/15/95 13.3750 3.4167
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3/17/95 13.2500 3.2917
3/20/95 13.7500 3.3333
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3/22/95 14.3125 3.2917
3/23/95 13.8750 3.2083
3/24/95 14.1250 3.2500
3/27/95 14.0000 3.2500
3/28/95 13.7500 3.2917
3/29/95 13.1563 3.2917
3/30/95 13.5000 3.2917
3/31/95 13.8750 3.4167
4/3/95 14.0000 3.5000
4/4/95 13.9375 3.5417
4/5/95 14.2500 3.3333
4/6/95 14.2188 3.2500
4/7/95 14.1250 3.2500
4/10/95 14.0000 3.3333
4/11/95 13.8750 3.3750
4/12/95 13.5000 3.2917
4/13/95 13.6875 3.2500
4/14/95 13.6875 3.2500
4/17/95 13.8750 3.2500
4/18/95 13.5000 3.1250
4/19/95 13.4063 3.1250
4/20/95 12.7813 3.3333
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4/24/95 12.3750 3.3333
4/25/95 12.5000 3.2083
4/26/95 12.2500 3.2917
4/27/95 12.6250 3.1667
4/28/95 12.4375 3.1250
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5/3/95 13.3750 3.4583
5/4/95 13.3750 3.2917
5/5/95 13.7500 3.2917
5/8/95 13.8750 3.4167
5/9/95 14.1250 3.2500
5/10/95 13.8750 3.2500
5/11/95 14.0625 3.2500
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5/16/95 14.6250 3.0417
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5/18/95 14.3750 3.0833
5/19/95 14.0000 3.0417
5/22/95 14.0000 3.0417
5/23/95 14.3750 2.9167
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5/25/95 14.2500 2.9167
5/26/95 14.2500 2.8333
5/29/95 14.2500 2.8333
5/30/95 14.3750 2.8333
5/31/95 14.5000 2.8750
6/1/95 14.7500 2.8333
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6/5/95 15.6250 2.8750
6/6/95 16.0000 2.9167
6/7/95 16.5625 2.9167
6/8/95 17.0625 2.9583
6/9/95 16.6250 2.9167
6/12/95 17.2500 2.9583
6/13/95 17.3125 2.9583
6/14/95 17.6250 2.8750
6/15/95 17.6875 2.7917
6/16/95 17.8750 2.8750
6/19/95 17.7500 2.8750
6/20/95 17.8750 2.9583
6/21/95 18.2500 2.8333
6/22/95 17.9375 2.8333
6/23/95 17.6875 2.8542
6/26/95 17.9375 2.8750
6/27/95 16.9375 2.7917
6/28/95 17.0000 2.9167
6/29/95 17.0625 3.2917
6/30/95 17.5625 3.2917
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7/4/95 17.5313 3.4167
7/5/95 17.5625 3.5000
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7/7/95 19.0625 3.4167
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7/11/95 18.6250 3.3750
7/12/95 18.6250 3.3750
7/13/95 19.8750 3.3333
7/14/95 19.6250 3.3333
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7/18/95 18.5000 3.4167
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7/20/95 17.7500 3.3333
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7/24/95 17.5000 3.4583
7/25/95 17.7500 3.7500
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7/27/95 17.9375 4.0833
7/28/95 17.6875 4.5417
7/31/95 17.8750 4.5833
8/1/95 18.3125 4.4167
8/2/95 18.0000 4.2083
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8/4/95 17.8125 4.1667
8/7/95 18.6875 4.2500
8/8/95 19.7500 4.2917
8/9/95 19.6250 4.3333
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8/14/95 19.7500 4.3333
8/15/95 19.8750 4.3333
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8/24/95 21.5000 4.4583
8/25/95 20.8125 4.5000
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8/29/95 20.5000 4.5000
8/30/95 20.3125 4.5000
8/31/95 20.8750 5.2083
9/1/95 20.8750 4.9167
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9/5/95 20.6250 5.0208
9/6/95 21.3125 5.0833
9/7/95 21.7500 5.2083
9/8/95 21.6250 5.2708
9/11/95 22.1875 5.2083
9/12/95 22.3750 5.4583
9/13/95 22.0625 5.7500
9/14/95 22.5625 5.5833
9/15/95 22.1250 5.3333
9/18/95 21.9375 5.4167
9/19/95 22.0000 5.5000
9/20/95 23.2500 5.5417
9/21/95 23.1250 5.5833
9/22/95 22.1250 5.5417
9/25/95 21.3750 5.5833
9/26/95 21.5000 5.5625
9/27/95 21.1250 5.4167
9/28/95 22.0000 5.5000
9/29/95 22.7500 5.6250
10/2/95 22.1250 5.5000
10/3/95 22.0000 5.3333
10/4/95 21.6250 5.2083
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10/6/95 21.1250 5.2083
10/9/95 20.3750 4.8333
10/10/95 20.0625 4.7083
10/11/95 20.6250 5.0833
10/12/95 20.7500 5.2500
10/13/95 20.7500 5.2500
10/16/95 20.9375 5.2292
10/17/95 22.0313 5.0208
10/18/95 21.5625 4.8750
10/19/95 23.2500 5.1667
10/20/95 22.7500 5.4167
10/23/95 23.0000 5.4583
10/24/95 22.7500 5.4167
10/25/95 23.2500 5.1667
10/26/95 22.6250 5.0833
10/27/95 21.7500 4.9167
10/30/95 23.5000 4.8958
10/31/95 24.8750 5.0000
11/1/95 24.8750 4.9583
11/2/95 25.8750 5.0000
11/3/95 26.1250 5.0833
11/6/95 25.0000 5.1250
11/7/95 24.6250 5.3333
11/8/95 24.0000 5.3333
11/9/95 24.0000 5.2500
11/10/95 23.0000 5.3750
11/13/95 24.2500 5.2917
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11/15/95 25.5000 5.6250
11/16/95 25.8750 5.5833
11/17/95 26.0000 5.7083
11/20/95 26.0000 5.5833
11/21/95 25.2500 5.8333
11/22/95 24.1250 5.8750
11/23/95 24.1250 5.8750
11/24/95 24.2500 5.9583
11/27/95 24.3750 6.4167
11/28/95 22.7500 6.2917
11/29/95 23.2500 6.3333
11/30/95 22.1250 6.5000
12/1/95 22.1250 6.7083
12/4/95 22.2500 6.6667
12/5/95 23.0000 6.9167
12/6/95 23.5000 6.7917
12/7/95 23.2500 6.5000
12/8/95 23.7500 6.1667
12/11/95 22.3750 6.0417
12/12/95 23.1250 5.9583
12/13/95 23.7500 6.0833
12/14/95 24.2500 6.3333
12/15/95 22.5000 6.3333
12/18/95 21.0000 6.0417
12/19/95 20.3750 6.1250
12/20/95 21.2500 6.3333
12/21/95 21.5000 6.6250
12/22/95 20.3750 6.9792
12/25/95 20.3750 6.9792
12/26/95 21.7500 7.0000
12/27/95 22.0000 7.0417
12/28/95 22.2500 7.0833
12/29/95 23.0000 7.3333
1/1/96 23.0000 7.3333
1/2/96 22.8750 7.2917
1/3/96 20.8750 7.2500
1/4/96 20.3750 6.7917
1/5/96 21.1250 6.6667
1/8/96 21.3750 6.5417
1/9/96 21.2500 6.4167
1/10/96 20.6250 6.3750
1/11/96 21.5000 6.3542
1/12/96 22.5000 6.5833
1/15/96 23.1250 6.7917
1/16/96 21.8750 6.8333
1/17/96 21.0000 6.7917
1/18/96 20.6250 6.6667
1/19/96 20.2500 6.5833
1/22/96 20.0625 6.6667
1/23/96 18.7500 6.9167
1/24/96 19.2500 6.6667
1/25/96 19.6250 6.7917
1/26/96 21.2500 6.6250
1/29/96 20.5000 6.9167
1/30/96 20.3125 7.0000
1/31/96 21.8750 7.3333
2/1/96 22.7500 7.1667
2/2/96 22.0000 7.1667
2/5/96 22.2500 7.2500
2/6/96 21.2500 7.3750
2/7/96 21.7500 8.0000
2/8/96 22.7500 8.3333
2/9/96 23.2500 8.1667
2/12/96 22.8750 8.3750
2/13/96 22.5000 8.2500
2/14/96 22.5000 8.2500
2/15/96 23.2500 8.2500
2/16/96 22.7500 8.8750
2/19/96 22.7500 8.8750
2/20/96 21.5000 9.1667
2/21/96 22.0000 9.3333
2/22/96 22.3750 9.2083
2/23/96 22.0000 9.1667
2/26/96 21.7500 8.9583
2/27/96 21.5000 8.8333
2/28/96 22.5000 8.8750
2/29/96 22.6250 8.7083
3/1/96 22.3750 8.7500
3/4/96 22.7500 8.9583
3/5/96 23.5000 8.9583
3/6/96 23.7500 9.0000
3/7/96 24.8750 8.7500
3/8/96 24.0000 8.7083
3/11/96 24.2500 9.1250
3/12/96 23.2500 9.0417
3/13/96 24.0000 9.1250
3/14/96 25.0000 9.8333
3/15/96 25.8750 9.7500
3/18/96 26.0000 10.0417
3/19/96 25.3750 10.1250
3/20/96 24.7500 10.2083
3/21/96 25.2500 9.7917
3/22/96 25.0000 9.7917
3/25/96 25.2500 10.0833
3/26/96 25.0000 10.4583
3/27/96 25.5000 10.8333
3/28/96 25.2500 9.4167
3/29/96 25.0000 10.0417
4/1/96 25.1250 10.1250
4/2/96 25.5000 10.1250
4/3/96 22.7500 10.1250
4/4/96 21.2500 10.1667
4/5/96 21.2500 10.1667
4/8/96 20.8750 12.6250
4/9/96 20.7500 13.2500
4/10/96 20.2500 13.6250
4/11/96 19.3750 13.6875
4/12/96 19.5000 13.8125
4/15/96 19.1875 13.4375
4/16/96 20.0000 13.6250
4/17/96 18.7500 13.3125
4/18/96 19.3750 13.8750
4/19/96 19.6250 15.0000
4/22/96 19.8750 15.6250
4/23/96 20.7500 16.8750
4/24/96 21.5000 17.3750
4/25/96 21.6250 17.1875
4/26/96 20.2500 17.1250
4/29/96 20.7500 16.5000
4/30/96 19.5000 14.2500
5/1/96 20.2500 13.8750
5/2/96 18.7500 15.5000
5/3/96 18.6250 16.0000
5/6/96 17.9375 16.7500
5/7/96 17.7500 16.2500
5/8/96 18.5625 16.0000
5/9/96 20.1250 15.5000
5/10/96 19.7500 15.0625
5/13/96 19.1250 15.7500
5/14/96 19.2500 15.6250
5/15/96 18.7500 14.7578
5/16/96 18.8750 15.3750
5/17/96 18.7500 14.9375
5/20/96 19.2500 14.5625
5/21/96 19.0000 14.9375
5/22/96 19.0000 14.6250
5/23/96 18.5000 14.2500
5/24/96 18.0000 13.7500
5/27/96 18.0000 13.7500
5/28/96 18.5000 13.0000
5/29/96 14.0000 12.8750
5/30/96 15.0000 13.2500
5/31/96 15.5000 13.2500
6/3/96 15.5000 13.7500
6/4/96 15.3750 13.8750
6/5/96 15.8750 13.3750
6/6/96 15.8750 13.5000
6/7/96 16.0000 13.0000
6/10/96 16.1250 12.8750
6/11/96 15.8750 12.3750
6/12/96 16.2500 11.5000
6/13/96 16.5000 12.3750
6/14/96 16.6250 12.2500
6/17/96 16.7500 12.0000
6/18/96 16.3750 11.5000
6/19/96 16.2500 11.2500
6/20/96 15.8750 10.8125
6/21/96 16.2500 11.8750
6/24/96 16.7500 13.3125
6/25/96 16.3750 13.8750
6/26/96 16.2500 13.7500
6/27/96 16.6250 14.5625
6/28/96 17.5000 13.5000
7/1/96 17.2500 14.0078
7/2/96 16.5000 13.8750
7/3/96 16.0000 13.8750
7/4/96 16.0000 13.8750
7/5/96 16.0000 13.6250
7/8/96 16.0000 13.1875
7/9/96 16.2500 13.5000
7/10/96 15.8750 13.2500
7/11/96 16.0000 13.2500
7/12/96 15.7500 13.5000
7/15/96 15.0625 12.2500
7/16/96 14.5000 12.2500
7/17/96 15.3750 13.6250
7/18/96 14.5000 14.5000
7/19/96 13.8750 14.3750
7/22/96 13.7500 14.1250
7/23/96 13.8750 14.0000
7/24/96 14.0000 13.6250
7/25/96 14.0000 13.7500
7/26/96 14.3750 13.7500
7/29/96 13.8750 14.1875
7/30/96 14.1250 14.3750
7/31/96 14.2500 14.7500
8/1/96 14.5000 15.5000
8/2/96 14.7500 16.2500
8/5/96 15.1250 16.6250
8/6/96 14.6250 16.3750
8/7/96 14.5000 16.8750
8/8/96 15.0000 16.8750
8/9/96 14.8750 17.2500
8/12/96 15.2500 18.0000
8/13/96 15.0000 16.5625
8/14/96 15.5000 16.0000
8/15/96 15.2500 16.0000
8/16/96 15.5000 16.0000
8/19/96 15.5000 16.0000
8/20/96 15.3750 15.8750
8/21/96 15.6250 15.7500
8/22/96 15.5000 16.0000
8/23/96 14.3750 15.8750
8/26/96 14.1250 16.0000
8/27/96 14.1250 16.8750
8/28/96 14.1250 16.7813
8/29/96 13.8750 17.2500
8/30/96 14.7500 17.3125
9/2/96 14.7500 17.3125
9/3/96 15.0000 17.1250
9/4/96 16.2500 17.6250
9/5/96 16.1250 16.7500
9/6/96 16.2500 16.8125
9/9/96 16.2500 17.5000
9/10/96 16.0000 17.3750
9/11/96 16.3750 17.5000
9/12/96 16.7500 19.0000
9/13/96 16.7500 19.1875
9/16/96 17.3750 19.5000
9/17/96 17.2500 19.1875
9/18/96 16.8750 18.4375
9/19/96 16.8125 18.9375
9/20/96 17.8750 19.0625
9/23/96 17.1250 18.5000
9/24/96 17.3750 18.8750
9/25/96 17.0000 19.6250
9/26/96 17.0000 19.1250
9/27/96 18.0000 18.6250
9/30/96 17.5625 18.2500
10/1/96 17.5000 16.2500
10/2/96 18.2500 16.3750
10/3/96 18.3750 16.8750
10/4/96 18.6250 16.6250
10/7/96 19.0000 16.6875
10/8/96 19.2500 16.5000
10/9/96 18.6250 16.1250
10/10/96 18.2500 15.6250
10/11/96 19.1250 13.5000
10/14/96 19.0000 13.6875
10/15/96 18.6250 13.5000
10/16/96 19.0000 13.0000
10/17/96 19.1250 12.3125
10/18/96 19.7500 12.5000
10/21/96 19.3750 12.7500
10/22/96 19.0000 12.6250
10/23/96 19.7500 12.4375
10/24/96 18.8750 12.7500
10/25/96 18.8750 12.3750
10/28/96 19.0000 11.8125
10/29/96 18.1250 12.0000
10/30/96 17.5000 13.2500
10/31/96 18.2500 13.5625
11/1/96 17.8750 13.5000
11/4/96 17.8750 13.6250
11/5/96 18.0000 14.5000
11/6/96 18.1250 15.1875
11/7/96 18.2500 14.6875
11/8/96 17.8750 14.6250
11/11/96 18.1250 14.6875
11/12/96 17.8750 14.4375
11/13/96 18.1250 14.3750
11/14/96 18.1250 14.1875
11/15/96 17.7500 13.9062
11/18/96 17.6250 13.6250
11/19/96 17.7500 13.0000
11/20/96 17.7500 13.5625
11/21/96 18.0000 13.4375
11/22/96 17.8125 13.3828
11/25/96 17.7500 13.3750
11/26/96 17.3750 12.6875
11/27/96 17.3750 12.8125
11/28/96 17.3750 12.8125
11/29/96 17.2500 12.6875
12/2/96 17.5000 12.9063
12/3/96 17.5000 12.7500
12/4/96 17.2500 13.3750
12/5/96 17.3750 13.2500
12/6/96 17.1250 12.9375
12/9/96 17.2500 13.0000
12/10/96 17.2500 13.0000
12/11/96 17.0000 13.0625
12/12/96 16.6250 13.2500
12/13/96 16.6250 12.8750
12/16/96 16.7500 12.7500
12/17/96 17.0000 11.8750
12/18/96 17.1250 13.2500
12/19/96 17.0000 13.6250
12/20/96 17.1250 13.1250
12/23/96 15.7500 13.1250
12/24/96 16.8750 13.1875
12/25/96 16.8750 13.1875
12/26/96 17.0000 13.4375
12/27/96 16.6250 13.1250
12/30/96 16.7500 13.6250
12/31/96 16.8750 13.5938
1/1/97 16.8750 13.5938
1/2/97 17.1250 13.3750
1/3/97 17.1250 13.6250
1/6/97 16.8750 14.4375
1/7/97 16.8125 14.6250
1/8/97 16.8750 14.3750
1/9/97 17.6250 14.5625
1/10/97 18.1250 14.8125
1/13/97 18.0000 15.0000
1/14/97 18.1250 14.6875
1/15/97 17.7500 14.9375
1/16/97 18.1250 15.5000
1/17/97 18.0000 15.3125
1/20/97 18.2500 15.5625
1/21/97 18.0000 15.6250
1/22/97 18.4375 16.5625
1/23/97 19.3750 16.1563
1/24/97 18.7500 15.6875
1/27/97 18.6250 16.1250
1/28/97 19.2500 16.1250
1/29/97 19.1250 16.2500
1/30/97 18.5000 15.8750
1/31/97 18.1250 16.0000
2/3/97 17.7500 15.8750
2/4/97 18.5000 15.8125
2/5/97 18.7500 15.4375
2/6/97 18.8750 14.4375
2/7/97 18.1250 14.4688
2/10/97 17.7500 13.9687
2/11/97 18.0000 13.5000
2/12/97 18.3750 13.8125
2/13/97 18.7500 13.8125
2/14/97 18.0625 14.6875
2/17/97 18.0625 14.6875
2/18/97 17.7500 15.2500
2/19/97 18.5000 14.8750
2/20/97 18.0000 14.5625
2/21/97 18.0000 14.2500
2/24/97 18.5000 13.8125
2/25/97 18.0000 13.3125
2/26/97 17.8750 12.8750
2/27/97 18.0000 13.1875
2/28/97 18.0000 13.0625
3/3/97 17.7500 12.0625
3/4/97 19.2500 12.5625
3/5/97 20.1250 12.5625
3/6/97 21.2500 12.4375
3/7/97 21.6875 12.4375
3/10/97 22.1250 12.3750
3/11/97 22.5000 12.0625
3/12/97 23.1250 12.6875
3/13/97 21.7500 12.6250
3/14/97 21.0000 13.6250
3/17/97 21.0000 14.0625
3/18/97 20.6250 13.2500
3/19/97 21.0000 13.1563
3/20/97 20.8750 13.1875
3/21/97 20.0000 12.7500
3/24/97 20.5000 13.1875
3/25/97 20.7500 13.3125
3/26/97 21.1250 13.8125
3/27/97 20.6250 12.5625
3/28/97 20.6250 12.5625
3/31/97 20.2500 12.8125
4/1/97 20.7500 13.1875
4/2/97 21.3125 12.2500
4/3/97 21.2500 11.6250
4/4/97 21.6250 12.0625
4/7/97 21.2500 12.1875
4/8/97 21.0625 11.6875
4/9/97 21.2500 11.2188
4/10/97 21.1250 10.6875
4/11/97 21.1250 9.9375
4/14/97 20.8750 10.5000
4/15/97 20.6250 10.3750
4/16/97 20.3750 10.1875
4/17/97 20.6250 10.2500
4/18/97 20.3750 10.1875
4/21/97 20.2500 10.4375
4/22/97 20.6250 10.8750
4/23/97 21.0000 10.5625
4/24/97 20.3750 10.5547
4/25/97 20.1250 10.2500
4/28/97 21.0000 10.3125
4/29/97 21.1250 10.2813
4/30/97 21.5000 9.9375
5/1/97 21.8750 9.6250
5/2/97 22.3750 10.1563
5/5/97 23.0000 11.9375
5/6/97 22.8750 12.2500
5/7/97 21.5000 11.8750
5/8/97 22.0000 12.0000
5/9/97 21.8750 12.0000
5/12/97 22.0000 11.3125
5/13/97 22.8750 10.9375
5/14/97 23.5000 10.8750
5/15/97 23.8750 11.5313
5/16/97 22.8750 11.8750
5/19/97 22.8125 12.3125
5/20/97 23.0000 12.6875
5/21/97 22.5000 13.0625
5/22/97 22.8750 12.8125
5/23/97 22.8750 12.7500
5/26/97 22.8750 12.7500
5/27/97 22.7500 13.1250
5/28/97 22.3750 12.9375
5/29/97 22.2500 12.9375
5/30/97 23.2500 13.3750
6/2/97 23.6875 13.7500
6/3/97 23.5625 13.5625
6/4/97 24.1250 13.6563
6/5/97 24.7500 14.5625
6/6/97 25.1250 15.5000
6/9/97 23.8750 15.5937
6/10/97 24.7500 16.1875
6/11/97 25.3750 16.5000
6/12/97 25.5000 16.0000
6/13/97 25.3750 16.8125
6/16/97 26.2500 17.4375
6/17/97 25.2500 17.5000
6/18/97 25.6250 17.0000
6/19/97 26.5000 17.2813
6/20/97 28.0000 17.6563
6/23/97 27.5000 17.7188
6/24/97 27.6250 18.1875
6/25/97 26.6250 18.4063
6/26/97 26.3750 18.5625
6/27/97 27.2500 18.6875
6/30/97 28.0000 19.5000
7/1/97 26.8750 17.6875
7/2/97 27.0000 18.1875
7/3/97 26.3750 17.8750
7/4/97 26.3750 17.8750
7/7/97 26.5625 17.0000
7/8/97 26.6250 17.3125
7/9/97 26.1250 17.0938
7/10/97 25.8750 17.2500
7/11/97 26.1250 18.0000
7/14/97 26.0000 18.3438
7/15/97 26.0000 17.8750
7/16/97 27.5000 18.3125
7/17/97 26.5000 18.6875
7/18/97 26.0000 18.3125
7/21/97 26.0000 18.1250
7/22/97 26.1250 17.5625
7/23/97 26.1250 17.5000
7/24/97 25.6250 18.2500
7/25/97 26.8125 18.0000
7/28/97 27.1250 17.8750
7/29/97 27.6875 17.3125
7/30/97 27.7500 17.1250
7/31/97 28.5000 17.8750
8/1/97 28.4375 17.9375
8/4/97 28.7500 18.3750
8/5/97 28.8750 18.3750
8/6/97 27.9375 17.7500
8/7/97 27.2500 17.7500
8/8/97 26.8125 17.3125
8/11/97 26.5000 16.5000
8/12/97 26.2500 16.0000
8/13/97 26.6250 16.3125
8/14/97 27.0000 17.0625
8/15/97 26.3750 16.8750
8/18/97 27.1250 16.8750
8/19/97 26.8750 18.1250
8/20/97 27.2500 17.8750
8/21/97 27.0000 17.6250
8/22/97 26.7500 17.1875
8/25/97 27.1250 17.0000
8/26/97 26.6875 17.0000
8/27/97 26.8750 17.0000
8/28/97 27.1875 17.5000
8/29/97 27.7500 17.3750
9/1/97 27.7500 17.3750
9/2/97 27.6250 17.6250
9/3/97 28.1250 18.0938
9/4/97 28.0625 18.3750
9/5/97 28.5000 19.0000
9/8/97 28.3750 18.5000
9/9/97 28.5000 18.6250
9/10/97 27.6875 18.3750
9/11/97 26.8750 17.6250
9/12/97 28.0000 17.3750
9/15/97 28.2500 17.1250
9/16/97 29.8750 17.9375
9/17/97 29.8750 19.1875
9/18/97 28.7500 19.1875
9/19/97 28.0625 19.8125
9/22/97 28.5000 21.0000
9/23/97 27.8750 20.8750
9/24/97 29.1875 20.9375
9/25/97 29.7500 20.4375
9/26/97 29.7500 20.5625
9/29/97 29.6250 21.6875
9/30/97 29.1250 22.8125
10/1/97 28.6250 22.3750
10/2/97 29.2500 21.9375
10/3/97 30.1250 21.5000
10/6/97 28.7500 22.0000
10/7/97 30.0000 22.0625
10/8/97 30.0000 21.7500
10/9/97 29.1875 22.0625
10/10/97 29.1875 22.0313
10/13/97 29.0625 22.0000
10/14/97 29.2500 21.7500
10/15/97 29.3125 21.9375
10/16/97 29.8750 21.2500
10/17/97 28.7500 21.0000
10/20/97 29.6250 20.8750
10/21/97 29.6875 20.9063
10/22/97 29.5625 21.4063
10/23/97 29.3750 21.1875
10/24/97 30.9375 22.3750
10/27/97 28.8750 20.7500
10/28/97 30.5625 22.1250
10/29/97 30.8750 22.2500
10/30/97 31.1250 22.0000
10/31/97 31.5000 21.8750
11/3/97 31.3750 21.8125
11/4/97 30.8125 22.5000
11/5/97 31.0625 22.8750
11/6/97 32.0000 23.5000
11/7/97 30.9375 22.8750
11/10/97 31.6875 23.4375
11/11/97 32.0625 21.3125
11/12/97 32.2500 20.0625
11/13/97 32.6250 22.5000
11/14/97 33.5000 22.5625
11/17/97 33.0000 22.2500
11/18/97 33.8125 21.8750
11/19/97 34.7500 21.9375
11/20/97 34.0625 21.9375
11/21/97 34.0000 22.0000
11/24/97 34.2500 22.0625
11/25/97 33.8125 22.6250
11/26/97 34.0000 23.0000
11/27/97 34.0000 23.0000
11/28/97 34.1250 23.7500
12/1/97 34.1250 23.5000
12/2/97 34.5000 23.8750
12/3/97 34.0625 24.2813
12/4/97 34.6250 25.3125
12/5/97 34.6250 26.3125
12/8/97 34.6250 25.7500
12/9/97 34.0000 24.5000
12/10/97 34.4375 25.3125
12/11/97 34.5000 24.3125
12/12/97 33.7500 25.1250
12/15/97 33.0000 24.8750
12/16/97 33.6250 25.9375
12/17/97 32.6250 25.6250
12/18/97 31.3750 26.5000
12/19/97 30.9375 27.0625
12/22/97 32.6250 28.5000
12/23/97 32.3750 29.5000
12/24/97 31.6250 30.1875
12/25/97 31.6250 30.1875
12/26/97 32.5000 29.3750
12/29/97 32.2500 29.6250
12/30/97 33.0000 29.6875
12/31/97 34.0000 30.1875
1/1/98 34.0000 30.1875
1/2/98 33.6250 29.1875
1/5/98 34.6250 29.2500
1/6/98 33.8750 29.6250
1/7/98 32.9375 29.0625
1/8/98 33.2500 28.0625
1/9/98 31.3750 27.1250
1/12/98 33.1250 28.0625
1/13/98 33.1250 30.4375
1/14/98 33.6250 31.0625
1/15/98 34.3750 30.4375
1/16/98 34.8750 31.2500
1/19/98 34.8750 31.2500
1/20/98 35.9375 33.1250
1/21/98 35.7500 33.0000
1/22/98 34.6250 33.7813
1/23/98 34.5000 33.5313
1/26/98 34.5000 33.8125
1/27/98 36.1875 33.4375
1/28/98 36.0625 32.2500
1/29/98 36.2500 34.0000
1/30/98 36.0625 34.5625
2/2/98 36.6250 36.0000
2/3/98 36.3750 38.0625
2/4/98 36.5625 37.3125
2/5/98 37.0000 36.8750
2/6/98 37.6250 36.7500
2/9/98 37.6875 36.2500
2/10/98 37.3750 37.6250
2/11/98 37.5000 37.9688
2/12/98 38.5000 37.5625
2/13/98 38.0000 37.6875
2/16/98 38.0000 37.6875
2/17/98 38.3125 37.3750
2/18/98 38.3125 36.6250
2/19/98 38.1875 37.7500
2/20/98 38.5625 38.3750
2/23/98 38.5000 38.6250
2/24/98 38.7500 37.6250
2/25/98 39.3750 38.0625
2/26/98 40.0000 37.5000
2/27/98 39.7500 37.0000
3/2/98 39.6250 35.6250
3/3/98 39.6875 35.2500
3/4/98 39.5625 35.3750
3/5/98 38.1250 36.2500
3/6/98 39.0625 37.0625
3/9/98 39.0625 37.5625
3/10/98 39.5000 38.6875
3/11/98 40.0000 37.3125
3/12/98 40.2500 36.2500
3/13/98 40.7500 36.7500
3/16/98 40.0000 37.2500
3/17/98 38.1875 37.8125
3/18/98 39.3750 37.6875
3/19/98 39.8750 38.0000
3/20/98 39.7500 36.8125
3/23/98 39.7500 36.8125
3/24/98 40.7500 36.6250
3/25/98 39.8750 36.3125
3/26/98 40.2500 31.8750
3/27/98 38.0000 30.3750
3/30/98 37.8750 33.6875
3/31/98 39.7500 34.0625
4/1/98 39.1875 33.9063
4/2/98 38.0625 32.0000
4/3/98 38.0625 32.3125
4/6/98 35.7500 32.4375
4/7/98 35.5000 31.9375
4/8/98 36.6250 32.1250
4/9/98 36.0625 33.0000
4/10/98 36.0625 33.0000
4/13/98 34.8750 33.6250
4/14/98 37.0000 34.3750
4/15/98 36.3750 35.2500
4/16/98 35.1875 35.5000
4/17/98 34.5000 35.4375
4/20/98 35.2500 34.8125
4/21/98 35.1875 34.0625
4/22/98 35.5625 33.3125
4/23/98 35.1250 34.8750
4/24/98 34.6250 32.2500
4/27/98 33.6250 31.4375
4/28/98 34.6250 32.0000
4/29/98 35.0000 32.0000
4/30/98 35.8750 31.9375
5/1/98 35.3125 31.9063
5/4/98 35.3125 31.8125
5/5/98 35.2500 31.3125
5/6/98 34.2500 31.3125
5/7/98 34.8750 30.5000
5/8/98 34.7500 31.3750
5/11/98 35.6875 30.7500
5/12/98 35.8125 30.0313
5/13/98 35.7500 30.6250
5/14/98 34.6250 31.1250
5/15/98 34.3125 31.5625
5/18/98 33.9375 33.8750
5/19/98 34.3750 32.8125
5/20/98 33.8750 32.5000
5/21/98 34.1250 32.5000
5/22/98 33.9375 32.6250
5/25/98 33.9375 32.6250
5/26/98 31.3125 31.8125
5/27/98 32.0000 31.3750
5/28/98 32.6250 33.2500
5/29/98 31.5625 33.5000
6/1/98 30.1875 32.7500
6/2/98 30.4375 31.5000
6/3/98 31.0000 31.7500
6/4/98 31.3125 32.8750
6/5/98 31.6250 33.3750
6/8/98 32.1250 34.9375
6/9/98 32.7500 36.6250
6/10/98 32.6875 36.0000
6/11/98 32.0625 34.8750
6/12/98 31.9375 34.5625
6/15/98 28.7500 33.9375
6/16/98 29.9375 33.0000
6/17/98 29.8750 32.5625
6/18/98 29.6875 35.6875
6/19/98 30.3750 35.0000
6/22/98 30.7500 34.6875
6/23/98 31.1250 34.1875
6/24/98 30.8125 34.6250
6/25/98 30.0625 36.6250
6/26/98 29.8750 35.8750
6/29/98 30.4688 35.8125
6/30/98 31.1250 35.2500
7/1/98 31.0000 36.6250
7/2/98 31.5625 36.5000
7/3/98 31.5625 36.5000
7/6/98 31.8125 37.6250
7/7/98 31.1250 38.1875
7/8/98 31.5000 38.0000
7/9/98 31.7500 37.8750
7/10/98 32.0625 37.5625
7/13/98 32.0000 38.3750
7/14/98 32.1250 37.5000
7/15/98 32.1250 38.1250
7/16/98 31.7500 37.5000
7/17/98 32.2500 36.5000
7/20/98 31.6250 35.2500
7/21/98 31.1250 33.1250
7/22/98 30.1250 33.0000
7/23/98 29.5000 31.8125
7/24/98 29.4375 31.8750
7/27/98 30.0000 31.3750
7/28/98 28.7500 30.1250
7/29/98 28.1875 29.5000
7/30/98 28.8750 30.0625
7/31/98 28.6250 30.1875
8/3/98 28.0000 29.8750
8/4/98 21.7500 22.7500 21.7500 21.7500
8/5/98 20.7500 21.0313
8/6/98 23.0000 24.2500
8/7/98 22.0000 27.5000
8/10/98 21.9375 26.6250
8/11/98 21.1250 25.8750
8/12/98 20.3750 27.1250
8/13/98 19.8750 25.5625
8/14/98 19.8750 24.8750
8/17/98 20.3125 24.6250
8/18/98 19.9375 25.0625
8/19/98 20.8125 25.1250
8/20/98 20.0000 25.5000
8/21/98 19.8125 26.0000
8/24/98 19.4375 25.1250
8/25/98 19.3750 23.5625
8/26/98 18.1250 22.2500
8/27/98 17.3125 21.7500
8/28/98 14.8750 21.0000
8/31/98 13.3125 18.2500
9/1/98 13.6250 18.2500
9/2/98 13.4375 18.9375
9/3/98 12.8750 17.6250
9/4/98 12.9375 17.5000
9/7/98 12.9375 17.5000
9/8/98 13.2500 19.8125
9/9/98 12.9375 19.0000
9/10/98 12.1875 19.1875
9/11/98 13.5000 19.3125
9/14/98 14.3750 19.8125
9/15/98 14.9375 20.5625
9/16/98 13.3750 24.2500
9/17/98 11.9375 23.4375
9/18/98 11.7500 23.5000
9/21/98 10.6250 21.8750
9/22/98 11.1875 20.6250
9/23/98 11.6250 19.4375
9/24/98 11.4375 18.0000
9/25/98 11.5625 18.0000
9/28/98 11.2500 16.2500
9/29/98 11.0625 15.5000
9/30/98 10.8125 15.4375
10/1/98 10.0625 16.3750
10/2/98 10.6250 17.3750
10/5/98 9.9375 18.3750
10/6/98 10.0625 18.8750
10/7/98 10.0000 18.8125
10/8/98 9.5000 18.2500
10/9/98 9.5000 17.1250
10/12/98 10.0000 17.4375
10/13/98 9.7500 17.1250
10/14/98 11.0000 16.6875
10/15/98 13.3750 16.8750
10/16/98 13.1250 17.6250
10/19/98 13.3125 18.1250
10/20/98 13.6875 18.6875
10/21/98 13.7500 18.8125
10/22/98 13.7500 18.8750
10/23/98 15.0000 18.6875
10/26/98 15.0625 18.6563
10/27/98 14.1250 18.6250
10/28/98 14.4375 18.3750
10/29/98 14.1875 17.7500
10/30/98 14.5625 17.9375
11/2/98 15.4375 18.8750
11/3/98 15.8750 19.7500
11/4/98 17.1250 22.0000
11/5/98 14.2500 13.0625
11/6/98 15.5625 12.9375
11/9/98 15.0625 14.0000
11/10/98 14.6875 14.5000
11/11/98 13.9375 15.6250
11/12/98 15.3125 14.9375
11/13/98 15.8125 15.5000
11/16/98 16.1875 15.5625
11/17/98 16.8125 15.4375
11/18/98 16.5000 15.1250
11/19/98 16.4375 14.5000
11/20/98 16.6875 14.9375
11/23/98 17.8125 14.9375
11/24/98 17.8125 14.0625
11/25/98 17.6875 13.8750
11/26/98 17.6875 13.8750
11/27/98 17.7500 13.7500
11/30/98 17.7500 13.3750
12/1/98 17.0625 12.0625
12/2/98 16.8125 12.5625
12/3/98 16.6875 12.0000
12/4/98 16.8125 11.6250
12/7/98 16.3125 11.5000
12/8/98 15.7500 11.0625
12/9/98 15.0625 12.9063
12/10/98 14.8125 13.1875
12/11/98 15.2500 13.3125
12/14/98 15.2500 13.2500
12/15/98 15.2500 13.6875
12/16/98 15.3750 14.0000
12/17/98 14.9375 13.8125
12/18/98 14.6250 13.9375
12/21/98 14.6875 14.0625
12/22/98 14.3750 13.6875
12/23/98 14.4375 13.6250
12/24/98 14.3125 13.3750
12/25/98 14.3125 13.3750
12/28/98 14.3125 13.0000
12/29/98 15.5000 13.1875
12/30/98 15.5000 13.1250
12/31/98 16.2500 14.0000
1/1/99 16.2500 14.0000
1/4/99 16.0625 14.1250
1/5/99 15.2500 14.8125
1/6/99 15.3750 15.6250
1/7/99 19.7500 14.8750
1/8/99 18.5000 14.1250
1/11/99 18.0625 14.6875
1/12/99 17.9375 14.6250
1/13/99 16.8750 14.6250
1/14/99 16.8750 14.9375
1/15/99 17.3125 15.5625
1/18/99 17.3125 15.5625
1/19/99 18.0625 16.5000
1/20/99 18.0625 15.5000
1/21/99 17.2500 14.8750
1/22/99 16.7188 14.5625
1/25/99 16.4375 14.1875
1/26/99 16.3125 14.8750
1/27/99 15.3750 13.6875
1/28/99 15.3125 14.0625
1/29/99 16.1250 13.7500
2/1/99 16.6875 13.5625
2/2/99 16.3125 13.3125
2/3/99 16.0625 14.0000
2/4/99 15.6875 13.8750
2/5/99 15.6875 13.8750
2/8/99 15.9375 13.9375
2/9/99 15.9063 13.6250
2/10/99 15.6250 13.0000
2/11/99 15.6875 13.8750
2/12/99 15.0625 13.6875
2/15/99 15.0625 13.6875
2/16/99 14.3125 13.5000
2/17/99 13.8125 12.5000
2/18/99 13.0000 13.3750
2/19/99 14.2500 13.4375
2/22/99 13.8750 13.3125
2/23/99 14.0000 13.9375
2/24/99 13.5000 15.1875
2/25/99 12.7500 14.3750
2/26/99 13.3750 14.3125
3/1/99 13.0625 14.0625
3/2/99 11.8750 14.0000
3/3/99 11.0000 14.0625
3/4/99 11.8750 15.0000
3/5/99 12.1875 17.0000
3/8/99 12.3125 17.0000
3/9/99 12.3125 16.6875
3/10/99 12.5625 16.9375
3/11/99 12.7500 16.7500
3/12/99 12.1250 16.4375
3/15/99 12.1875 17.1250
3/16/99 12.4375 20.2500
3/17/99 13.0000 22.6875
3/18/99 13.6875 22.2500
3/19/99 13.6250 21.0625
3/22/99 13.5938 21.0000
3/23/99 13.1875 19.6875
3/24/99 13.1250 20.5625
3/25/99 13.1250 19.6250
3/26/99 13.2500 19.3750
3/29/99 13.4375 18.8125
3/30/99 13.1875 18.0625
3/31/99 14.0000 19.1875
4/1/99 14.3125 18.5625
4/2/99 14.3125 18.5625
4/5/99 14.3750 18.8125
4/6/99 14.2500 18.4375
4/7/99 13.8125 17.8750
4/8/99 14.3750 17.5625
4/9/99 14.2813 17.6875
4/12/99 14.5000 18.0000
4/13/99 14.4375 19.0000
4/14/99 14.2500 19.2500
4/15/99 14.2500 17.1875
4/16/99 13.8750 17.0000
4/19/99 13.6250 15.8750
4/20/99 13.4375 17.0625
4/21/99 13.3750 17.1250
4/22/99 13.5625 17.3125
4/23/99 13.5625 16.5000
4/26/99 14.3750 17.8125
4/27/99 15.0625 18.5625
4/28/99 16.5000 17.6250
4/29/99 16.1250 17.3750
4/30/99 16.5625 17.3125
5/3/99 16.5000 18.4375
5/4/99 16.7500 18.8750
5/5/99 17.0000 19.6250
5/6/99 16.5625 18.5000
5/7/99 17.7500 19.0625
5/10/99 17.3125 18.9375
5/11/99 16.8750 18.0625
5/12/99 17.5313 18.5000
5/13/99 17.7500 19.0000
5/14/99 17.5000 18.5625
5/17/99 17.8750 19.7500
5/18/99 17.3750 19.3125
5/19/99 18.1250 20.0000
5/20/99 18.5000 20.5000
5/21/99 17.6250 19.2500
5/24/99 17.4375 18.5000
5/25/99 17.0000 18.6250
5/26/99 17.1250 19.3750
5/27/99 17.1250 17.3750
5/28/99 16.5625 17.0625
5/31/99 16.5625 17.0625
6/1/99 16.6875 16.6875
6/2/99 16.3125 16.4375
6/3/99 17.5000 16.5000
6/4/99 18.0000 16.3125
6/7/99 17.9375 15.9375
6/8/99 17.7500 15.3750
6/9/99 17.2500 15.1250
6/10/99 17.6250 14.1875
6/11/99 18.0625 13.6250
6/14/99 17.4375 13.4375
6/15/99 17.6875 11.9375
6/16/99 18.5000 12.5000
6/17/99 18.7500 12.8125
6/18/99 19.5000 13.0938
6/21/99 20.0625 13.1250
6/22/99 20.8125 13.0313
6/23/99 20.5625 13.3125
6/24/99 19.8125 13.0000
6/25/99 19.5625 12.7500
6/28/99 21.9688 12.3125
6/29/99 21.0000 11.6250
6/30/99 23.3125 12.1875
7/1/99 22.5000 12.8125
7/2/99 22.8750 12.6875
7/5/99 22.8750 12.6875 22.8750 22.8750
7/6/99 24.5625 12.9375
7/7/99 24.5625 13.2500
7/8/99 24.6250 13.1875
7/9/99 24.6250 13.2500
7/12/99 24.5625 12.9375
7/13/99 24.5625 12.6250
7/14/99 24.6250 12.9375
7/15/99 24.5938 13.1875
7/16/99 24.6250 13.0000
7/19/99 24.6875 13.0625
7/20/99 24.7813 13.2500
7/21/99 24.7500 13.1250
7/22/99 24.7500 12.7500
7/23/99 24.8125 12.8125
7/26/99 24.7500 12.5000
7/27/99 24.7500 12.4375
7/28/99 24.7500 12.7500
7/29/99 24.7500 12.3125
7/30/99 24.8125 12.4375
8/2/99 24.7500 12.6250
8/3/99 24.9375 12.0625
8/4/99 24.7500 12.0000
8/5/99 24.8125 11.9375
8/6/99 24.7500 12.0000
8/9/99 24.7500 12.0000
8/10/99 24.8125 11.7500 24.8125 24.8125
8/11/99 #N/A 12.1250
8/12/99 #N/A 12.1250
8/13/99 #N/A 12.9375
8/16/99 #N/A 13.2500
8/17/99 #N/A 13.2500
8/18/99 #N/A 12.9375
8/19/99 #N/A 13.1875
8/20/99 #N/A 13.2500
8/23/99 #N/A 13.3125
8/24/99 #N/A 13.2500
8/25/99 #N/A 13.1250
8/26/99 #N/A 13.0000
8/27/99 #N/A 12.8750
8/30/99 #N/A 12.6250
8/31/99 #N/A 12.5000
9/1/99 #N/A 12.6250
9/2/99 #N/A 12.0625
9/3/99 #N/A 12.4375
9/6/99 #N/A 12.4375
9/7/99 #N/A 12.3750
9/8/99 #N/A 12.2500
9/9/99 #N/A 12.3125
9/10/99 #N/A 12.2500
9/13/99 #N/A 12.4375 12.4375
9/14/99 #N/A 12.6250
9/15/99 #N/A 12.6250
9/16/99 #N/A 12.6250
9/17/99 #N/A 14.3750
9/20/99 #N/A 13.9375
9/21/99 #N/A 14.1875
9/22/99 #N/A 14.1250
9/23/99 #N/A 14.3750
9/24/99 #N/A 14.1875
9/27/99 #N/A 14.1875
9/28/99 #N/A 14.6875
9/29/99 #N/A 14.3750
9/30/99 #N/A 12.3125
10/1/99 #N/A 11.6250
10/4/99 #N/A 11.3750
10/5/99 #N/A 11.3750
10/6/99 #N/A 12.0000
10/7/99 #N/A 11.5000
10/8/99 #N/A 11.5625
10/11/99 #N/A 11.3125
10/12/99 #N/A 11.0000
10/13/99 #N/A 10.3125
10/14/99 #N/A 10.7500
10/15/99 #N/A 10.3125
10/18/99 #N/A 9.6875
10/19/99 #N/A 10.5625
10/20/99 #N/A 11.0000
10/21/99 #N/A 10.7500
10/22/99 #N/A 10.9375
10/25/99 #N/A 11.0625
10/26/99 #N/A 10.9375
10/27/99 #N/A 10.9375
10/28/99 #N/A 10.8125
10/29/99 #N/A 10.5625
11/1/99 #N/A 10.6250
11/2/99 #N/A 10.8750
11/3/99 #N/A 11.0938
11/4/99 #N/A 11.0625
11/5/99 #N/A 11.0625
11/8/99 #N/A 10.9375
11/9/99 #N/A 11.0000
11/10/99 #N/A 10.9375
11/11/99 #N/A 11.4375
11/12/99 #N/A 11.5000
11/15/99 #N/A 11.6875
11/16/99 #N/A 11.9375
11/17/99 #N/A 11.6875
11/18/99 #N/A 11.0625
11/19/99 #N/A 10.8125
11/22/99 #N/A 10.8750
11/23/99 #N/A 10.5938
11/24/99 #N/A 10.8125
11/25/99 #N/A 10.8125
11/26/99 #N/A 10.6875
11/29/99 #N/A 10.4375
11/30/99 #N/A 10.2500
12/1/99 #N/A 10.0000
12/2/99 #N/A 10.3750
12/3/99 #N/A 10.1875
12/6/99 #N/A 9.9375
12/7/99 #N/A 9.5625
12/8/99 #N/A 10.6875
12/9/99 #N/A 10.6250
12/10/99 #N/A 10.1875
12/13/99 #N/A 10.5625
12/14/99 #N/A 10.0625
12/15/99 #N/A 10.0625
12/16/99 #N/A 10.5000 10.5
12/17/99 #N/A 11.0625
12/20/99 #N/A 10.1250
12/21/99 #N/A 10.1250
12/22/99 #N/A 10.0625
12/23/99 #N/A 10.0625
12/24/99 #N/A 10.0625
12/27/99 #N/A 10.0000
12/28/99 #N/A 10.0000
12/29/99 #N/A 10.0625
12/30/99 #N/A 10.6875
12/31/99 #N/A 10.3125
1/3/00 #N/A 9.9375
1/4/00 #N/A 9.9375
1/5/00 #N/A 10.5000
1/6/00 #N/A 10.4375
1/7/00 #N/A 11.2500
1/10/00 #N/A 10.8750
1/11/00 #N/A 11.0000
1/12/00 #N/A 10.9375
1/13/00 #N/A 11.1875
1/14/00 #N/A 11.7500
1/17/00 #N/A 11.7500
1/18/00 #N/A 11.5625
1/19/00 #N/A 11.8125
</TABLE>
A 10/25/94: DSHEA Act of 1994 became effective on October 25, 1994. The
Act classified dietary supplements as foods instead of drugs
B 08/04/98: GNC announces downward product price revisions on August 4,
1998
C 07/05/99: Royal Numico announces acquisition of GNC
D 8/11/99: Royal Numico/GNC transaction closes
E 9/13/99: Sage Transaction announced
F 12/16/99: Rexall Sundown announces acquisition of Met-Rx
- --------------------------------------------------------------------------------
- -------------
(1) GNC stock started trading on 1/21/93. GNC is the largest health food
stores channel specialty retailer of nutritional supplements.
(2) Rexall Sundown stock started trading on 6/18/93. Rexall is the largest
mass channel (F/D/M) player.
42
<PAGE> 64
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PRECEDENT M&A TRANSACTIONS--VITAMIN AND NUTRITIONAL SUPPLEMENTS INDUSTRY
<TABLE>
<CAPTION>
SINCE 1996(1) ($ IN MILLIONS, EXCEPT MULTIPLES)
====================================================================================================================================
ENTERPRISE VALUE/
-------------------------------------- EQUITY VALUE/(5)
EQUITY AGGREGATE LATEST TWELVE MONTHS PROJECTED ----------------------
DATE DATE ACQUIRER/TARGET PURCHASE PURCHASE ----------------------- -------------- LTM NET PROJ.NET BOOK
ANN. EFFECTIVE (TARGET BUSINESS DESCRIPTION) PRICE PRICE NET SALES EBITDA EBIT NET SALES EBIT INCOME INCOME VALUE
- -------- --------- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/13/99 PENDING SAGE MANAGEMENT/SAGE $590.6 $481.0 0.52X 4.8X 5.8X 0.50X 5.3X 11.6X 10.5X 3.1X
- -------- --------- ----------------------------------------- -------- ------- ------ ------ ------- -------------- -------- --------
12/16/99 Pending Rexall Sundown, Inc./MET-Rx 108.0 108.0 1.03 - - - - - - -
(manufacturer of sports
nutrition and energy bars)
7/6/99 8/11/99 Royal Numico N.V./General 1,769.5 2,527.3 1.77 10.1 14.1 1.68 12.8 21.0 18.8 14.4
Nutrition Companies, Inc.
(retailer of vitamins and
mineral supplements)
6/16/98 6/16/98 American Home Products/Solgar(3) 425.0 425.0 4.25 - - - - - - -
4/2/98 4/20/98 NBTY Inc/Nutrition Headquarters 176.7 183.3 2.29 12.5 13.9 2.36 - 20.7 - -
and Affiliates
(direct mail marketer of
nutritional supps.)
3/17/98 4/30/98 Twinlab Corporation/Bronson Div. 55.0 55.0 1.71 5.2 5.8 - - 9.3 - -
(Jones Medical)
12/24/97 1/29/98 Rexall Sundown, Inc./Richardson 85.1 88.5 3.24 - 23.7 1.77 8.8 40.3 14.2 -
Labs, Inc.
(manufacturer of natural diet
products)
7/28/97 8/8/97 NBTY, Inc./Holland & Barrett 169.0 176.7 1.06 10.3 14.9 1.04(4) 7.7 22.0 10.9(4) 5.5
Holdings Limited
(UK retailer of vitamins and
health foods)
7/1/97 Withdrawn Rexall Sundown, Inc./Twinlab 781.2 895.0 5.05 20.6 21.6 4.45 18.7 43.9 34.8 NM
Corporation
(manufacturer of vitamins,
nutritional supps.)
6/30/97 6/30/97 North Castle Part. 205.0 324.8 0.78 7.4 10.4 - - 46.5 - NM
(Recap.)/Leiner Group
(manufacturer of vitamins,
nutritional supps.)
6/23/97 10/31/97 United Natural Foods, Inc./Stow 90.9 123.8 0.59 23.6 32.6 - - 124.1 - 19.9
Mills, Inc.
(distributor of natural
products and health foods)
6/9/97 9/12/97 Whole Foods Market, 153.6 147.1 2.48 16.5 20.1 1.66 11.8 29.4 - 4.6
Inc./Amrion, Inc.
(direct mail marketer of
nutritional supps.)
3/12/96 5/7/96 Green Equity Investors & Twin 217.0 216.0 1.45 6.4 6.9 - - 11.8 - 3.8
Laboratories/Twin Laboratories
(manufacturer of vitamins,
nutritional supps.)
HIGH(2) $1,769.5 $2,527.3 5.05X 23.6X 32.6X 4.45X 18.7X 124.1X 34.8X 19.9X
LOW(2) 55.0 55.0 0.59 5.2 5.8 1.04 7.7 9.3 10.9 3.8
HARMONIC 1.44 9.9 12.6 1.78 10.9 22.5 16.4 6.4
MEAN(2)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- -----------
(1) Excludes all material extraordinary and non-recurring items.
(2) Excludes Sage Management/Sage.
(3) Per Forbes magazine, September 21, 1998, page 89.
(4) May include prospective synergies.
(5) Where applicable, P/E ratios instead of Equity Value/Net Income multiples.
43
<PAGE> 65
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PRECEDENT M&A TRANSACTIONS--MULTI-LEVEL MARKETING COMPANIES
<TABLE>
<CAPTION>
SINCE 1996(1) ($ IN MILLIONS, EXCEPT MULTIPLES)
==================================================================================================================================
ENTERPRISE VALUE/
---------------------------------------- EQUITY VALUE/(3)
EQUITY AGGREGATE LATEST TWELVE MONTHS PROJECTED ------------------------
DATE DATE ACQUIRER/TARGET PURCHASE PURCHASE---------------------------------------- LTM NET PROJ.NET BOOK
ANN. EFFECTIVE (TARGET BUSINESS DESCRIPTION) PRICE PRICE NET SALES EBITDA EBIT NET SALES EBIT INCOME INCOME VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/13/99 PENDING SAGE MANAGEMENT/SAGE $590.6 $481.0 0.52X 4.8X 5.8X 0.50X 5.3X 11.6X 10.5X 3.1X
- ----------------------------------------------------------------------------------------------------------------------------------
1/26/98 4/30/98 Clayton, Dubilier & Rice/Jafra 202.5 202.5 0.88 6.7 7.8 - - 11.1 - -
Cosmetics
(multi level marketer of
cosmetics)
11/12/97 11/12/97 TwinLab/Changes International 13.7 13.7 0.69 - 8.1 0.34X 4.0X - - -
----------------------------------------------------------------------------------------------------------------
HIGH(3) $202.5 $202.5 0.88X 6.7X 8.1X 0.34X 4.0X 11.1X NA NA
LOW(3) 13.7 13.7 0.69 6.7 7.8 0.34 4.0 11.1 NA NA
HARMONIC
MEAN(3) 0.77 6.7 7.9 0.34 4.0 11.1 NA NA
----------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------
(1) Excludes all material extraordinary and non-recurring items.
(2) Where applicable, P/E ratios instead of Equity Value/Net Income multiples.
(3) Excludes Sage Management/Sage.
<PAGE> 66
F
<PAGE> 67
[BEAR STEARNS LETTERHEAD]
SECTION 4-F
INDICATIVE THIRD PARTY LBO ANALYSIS
<PAGE> 68
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
SOURCES AND USES OF FUNDS
ASSUMPTIONS
- - Financial sponsor purchases all outstanding shares and options
(including those owned by Mark Hughes) at $17.81 per share
- - Leverage (total debt/1999 EBITDA) of 3.5x
- - Minimum cash balance of $50.0 million
- - Transaction closes on January 1, 2000 and financial sponsor investment
horizon is 5 years to December 31, 2004
- - $19.3 million in fees and expenses for bank financing, high yield debt
financing, financial sponsor and M&A advisory services
<TABLE>
<CAPTION>
SOURCES OF FUNDS ($ IN MILLIONS)
===============================================================
RATE AMOUNT % CAP
------ ------ ------
<S> <C> <C> <C>
Revolving Credit Facility 8.50% $168.6 27.3%
Senior subordinated notes 12.00 200.0 32.4
Cash from the balance sheet 75.0 12.2
Management rollover equity 0.0 0.0
Financial sponsor equity 173.3 28.1
------ -----
Total sources $616.9 100.0%
====== =====
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
USES OF FUNDS ($ IN MILLIONS)
===============================================================
AMOUNT
------
<S> <C>
Purchase of common stock(1) $509.9
Purchase of options(2) 80.7
Existing senior debt 7.0
Existing subordinated debt 0.0
Existing preferred stock 0.0
Working capital 0.0
Fees and expenses: financing and other 19.3
------
Total uses $616.9
======
- ---------------------------------------------------------------
</TABLE>
- ------------
(1) Based on 10,002,383 shares outstanding of Class A and 18,628,681 shares
outstanding of Class B as of January 6, 2000 as per Sage Management and DLJ.
(2) Includes Mark Hughes' and Management's options.
45
<PAGE> 69
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
CREDIT STATISTICS
<TABLE>
<CAPTION>
==========================================================================================================================
LTM PRO PROJECTED FISCAL YEARS ENDED DECEMBER 31,
FORMA -----------------------------------------------------------------
STATISTIC 12/31/99 2000 2001 2002 2003 2004 2005 2006
- ---------------------------------------- -------- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
COVERAGE RATIOS
EBITDA/Cash Interest Expense 3.1x 3.2x 4.0x 4.7x 5.4x 6.3x 7.8x 10.4x
(EBITDA--CapEx)/Cash Interest Expense 2.3 2.7 3.5 4.1 4.8 5.6 6.9 9.2
EBIT/Cash Interest Expense 2.7 2.2 2.8 3.3 3.7 4.4 5.7 7.7
LEVERAGE RATIOS
Debt/Total Equity NM 179% 136% 98% 74% 66% 58% 51%
Bank Debt/EBITDA 1.6x 1.2x 0.7x 0.3x 0.0x 0.0x 0.0x 0.0x
Total Debt/EBITDA 3.5 3.0 2.4 1.9 1.6 1.6 1.5 1.4
Total Debt/Total Capitalization 69% 64% 58% 50% 43% 40% 37% 34%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
46
<PAGE> 70
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
EQUITY RETURNS TO FINANCIAL SPONSOR(1)
Original Investment: $173.3 million
Ownership: 100%
<TABLE>
<CAPTION>
EQUITY VALUE IN 2004 ($ IN MILLIONS)
===========================================================================
EBITDA EXIT MULTIPLE
---------------------------------------
3.5x 4.0x 4.5x 5.0x
---- ---- ---- ----
<S> <C> <C> <C> <C>
ENTERPRISE VALUE $446.3 $510.0 $573.8 $637.5
Less: Total Debt (200.0) (200.0) (200.0) (200.0)
Plus: Cash and Equivalents 121.8 121.8 121.8 121.8
------ ------ ------ ------
EQUITY VALUE $368.1 $431.8 $495.6 $559.3
====== ====== ====== ======
- ---------------------------------------------------------------------------
</TABLE>
5-YEAR EQUITY RETURN
ON INVESTMENT TO FINANCIAL SPONSOR
==================================
EBITDA EXIT MULTIPLE
<TABLE>
<CAPTION>
3.5x 4.0x 4.5x 5.0x
- ----- ----- ----- -----
<S> <C> <C> <C>
16.2% 20.0% 23.4% 26.4%
</TABLE>
- -----------------------------------
- --------------
(1) Assumes no refinancing or other financial engineering which could
potentially enhance returns on investment.
47
<PAGE> 71
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PURCHASE PRICE SENSITIVITY ANALYSIS ON FINANCIAL SPONSOR RETURNS
|X| Financial sponsors typically seek 25% to 35% compound annual rates of return
over a five year investment horizon
<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN (IRR)
===================================================================================================================================
MAXIMUM LEVERAGE 3.0X 1999 EBITDA MAXIMUM LEVERAGE 3.5X 1999 EBITDA
EBITDA ------------------------------------------------- EBITDA --------------------------------------------------
MULTIPLE AT PURCHASE PRICE MULTIPLE AT PURCHASE PRICE
EXIT ------------------------------------------------- EXIT --------------------------------------------------
IN YEAR 2004 $15.50 $16.00 $16.50 $17.00 $17.50 $18.00 $18.50 IN YEAR 2004 $15.50 $16.00 $16.50 $17.00 $17.50 $18.00 $18.50
------------ ------ ------ ------ ------ ------ ------ ------ ------------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3.5x 25.0% 22.0% 19.4% 17.1% 15.1% 13.2% 11.5% 3.5x 32.8% 27.9% 24.0% 20.7% 17.8% 15.3% 13.1%
4.0 28.5 25.4 22.7 20.4 18.3 16.3 14.6 4.0 37.1 32.1 28.0 24.6 21.6 19.1 16.8
4.5 31.6 28.5 25.7 23.3 21.1 19.2 17.4 4.5 40.9 35.8 31.6 28.1 25.0 22.4 20.1
5.0 34.5 31.3 28.5 26.0 23.8 21.8 20.0 5.0 44.4 39.1 34.8 31.2 28.1 25.4 23.0
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
================================================================
MAXIMUM LEVERAGE 4.0X 1999 EBITDA
EBITDA -------------------------------------------------
MULTIPLE AT PURCHASE PRICE
EXIT -------------------------------------------------
IN YEAR 2004 $15.50 $16.00 $16.50 $17.00 $17.50 $18.00 $18.50
------------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
3.5x 52.6% 40.7% 32.8% 27.0% 22.5% 18.8% 15.6%
4.0 58.6 46.2 38.0 32.0 27.3 23.4 20.2
4.5 63.8 51.0 42.5 36.3 31.4 27.4 24.1
5.0 68.3 55.2 46.5 40.1 35.1 31.0 27.6
- ----------------------------------------------------------------
</TABLE>
48
<PAGE> 72
[BEAR STEARNS LETTERHEAD]
APPENDICES
<PAGE> 73
[BEAR STEARNS LETTERHEAD]
APPENDIX A
HISTORICAL AND PROJECTED FINANCIAL STATEMENTS
<PAGE> 74
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
HISTORICAL FINANCIAL RESULTS(1)
<TABLE>
<CAPTION>
INCOME STATEMENT DATA ($ IN MILLIONS, EXCEPT PER SHARE DATA)
====================================================================================================================================
FISCAL YEARS ENDED DECEMBER 31, NINE MONTHS ENDED LTM ENDED
----------------------------------------------------------- ---------------------- ----------
1994 1995 1996 1997 1998 09/30/98 09/30/99 09/30/99
------ ------ -------- -------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail Sales $884.1 $923.6 $1,200.1 $1,490.7 $1,644.8 $1,199.3 $1,300.6 $1,746.2
Distributor Allowance (417.2) (434.6) (568.2) (708.2) (778.2) (566.5) (608.9) (820.5)
------ ------ -------- -------- -------- --------- --------- --------
Net Sales $466.9 $489.0 $631.9 $782.5 $866.6 $632.8 $691.7 $925.7
Growth % 4.7% 29.2% 23.8% 10.7% 9.3%
Gross Margin $336.2 $345.4 $463.5 $577.4 $635.8 $466.9 $512.1 $681.1
Gross margin % 72.0% 70.6% 73.3% 73.8% 73.4% 73.4% 74.0% 73.6%
EBITDA $ 74.2 $ 38.6(2) $ 79.3 $ 97.0 $ 94.2 $ 69.0 $ 74.6 $ 99.7
EBITDA margin % 15.9% 7.9% 12.6% 12.4% 10.9% 10.9% 10.7% 10.8%
EBIT $ 70.7 $ 30.5(2) $ 68.7 $ 86.0 $ 78.4 $ 59.7 $ 64.5 $ 83.1
EBIT margin % 15.1% 6.2% 10.9% 11.0% 9.0% 9.4% 9.3% 9.0%
Net Income $ 46.0 $ 21.1(2) $ 44.8 $ 54.7 $ 48.5 $ 37.2 $ 39.5 $ 50.8
Net income margin % 9.9% 4.3% 7.1% 7.0% 5.6% 5.9% 5.7% 5.5%
EPS $ 1.50 $ 0.70(2) $ 1.43 $ 1.72 $ 1.60 $ 1.24 $ 1.30 $ 1.67
EPS growth % - (53.6%) 105.4% 20.3% (7.0%) - 4.8% -
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ------------
(1) Source: Sage management report, Sage 10-K dated 12/31/98, and Sage 10-Q
dated 9/30/99.
(2) Excludes non-recurring pre-tax charge of $2.3 million in 1995.
49
<PAGE> 75
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
HISTORICAL FINANCIAL RESULTS(1) (CONT.)
<TABLE>
<CAPTION>
QUARTERLY INCOME STATEMENT DATA ($ IN MILLIONS, EXCEPT PER SHARE DATA)
================================================================================================================
1997 1998
---------------------------------- -----------------------------------
Q1(2) Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
------ ------ ------ ------ -------- ------ ------ ------ ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues by region:
Asia/Pacific Rim $125.5 $140.7 $182.4 $194.8 $643.4 $151.4 $154.8 $174.1 $210.4 $690.7
Europe 106.3 113.3 109.6 123.9 453.1 135.8 125.5 108.9 112.9 483.1
The Americas 92.1 96.0 101.9 104.1 394.1 111.2 117.8 119.7 122.3 471.0
------ ------ ------ ------ -------- ------ ------ ------ ------ --------
Total revenues $323.9 $350.0 $393.9 $422.9 $1,490.7 $398.4 $398.1 $402.7 $445.6 $1,644.8
Revenues by
product:
Weight management $ 97.9 $103.8 $126.4 $120.8 $448.9 $118.4 $128.0 $132.3 $134.1 $512.8
Food & supplements 167.0 192.1 210.7 236.0 805.8 204.9 207.5 214.0 238.8 865.2
Personal care
products 42.4 37.0 36.8 50.4 166.6 55.2 45.9 41.0 56.8 198.9
Other 16.6 17.1 20.0 15.7 69.4 19.9 16.7 15.4 15.9 67.9
------ ------ ------ ------ -------- ------ ------ ------ ------ --------
Total revenues $323.9 $350.0 $393.9 $422.9 $1,490.7 $398.4 $398.1 $402.7 $445.6 $1,644.8
Distributor
allowances (154.0) (165.1) (186.7) (202.5) (708.2) (188.7) (188.2) (189.7) (211.7) (778.2)
------ ------ ------ ------ -------- ------ ------ ------ ------ --------
Net sales $169.9 $184.9 $207.2 $220.4 $782.5 $209.7 $209.9 $213.0 $233.9 $866.6
Revenue growth % - - - - - 23.4% 13.5% 2.8% 6.1% 10.8%
Gross margin $124.2 $136.8 $153.6 $162.9 $577.4 $155.2 $156.3 $155.3 $169.0 $635.8
Gross margin % 73.1% 74.0% 74.1% 73.9% 73.8% 74.0% 74.4% 72.9% 72.2% 73.4%
EBITDA $ 20.7 $ 23.8 $ 24.6 $ 27.8 $ 97.0 $ 26.7 $ 27.6 $ 14.8 $ 25.1 $ 94.2
EBITDA margin % 12.2% 12.9% 11.9% 12.6% 12.4% 12.7% 13.1% 6.9% 10.7% 10.9%
EBIT $ 18.5 $ 21.4 $ 21.9 $ 24.2 $ 86.0 $ 23.7 $ 24.5 $ 11.5 $ 18.6 $ 78.4
EBIT margin % 10.9% 11.6% 10.6% 11.0% 11.0% 11.3% 11.7% 5.4% 7.9% 9.0%
Net income $ 11.9 $ 13.7 $ 14.3 $ 14.8 $ 54.7 $ 14.8 $ 15.3 $ 7.1 $ 11.3 $ 48.5
Net income
margin % 7.0% 7.4% 6.9% 6.7% 7.0% 7.1% 7.3% 3.3% 4.8% 5.6%
EPS $ 0.38 $ 0.44 $ 0.45 $ 0.45 $ 1.72 $ 0.48 $ 0.50 $ 0.24 $ 0.38 $ 1.60
EPS growth % - - - - - 26.3% 13.6% (46.7%) (15.6%) (7.0%)
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=============================================================
1999
------------------------------------
Q1 Q2 Q3 LTM
------ ------ ------ --------
<S> <C> <C> <C> <C>
Revenues by region:
Asia/Pacific Rim $ 193.4 $ 167.3 193.6 $ 764.7
Europe 114.3 121.9 109.3 458.4
The Americas 121.1 136.6 143.1 523.1
------- ------- ------ --------
Total revenues $ 428.8 $425.8 $446.0 $1,746.2
Revenues by
product:
Weight management $ 225.8 185.6 193.3 738.8
Food & supplements 140.2 184.1 197.0 760.1
Personal care
products 51.8 42.8 45.8 197.2
Other 11.0 13.3 9.9 50.1
------- ------- ------ --------
Total revenues $ 428.8 $ 425.8 $446.0 $1,746.2
Distributor
allowances (202.4) (199.4) (207.1) (820.5)
------- ------- ------ --------
Net sales $ 226.4 $ 226.4 $238.9 $ 925.7
Revenue growth % 8.0% 7.8% 12.1% 8.5%
Gross margin $ 167.9 $ 168.7 $175.4 $ 681.1
Gross margin % 74.2% 74.5% 73.4% 73.6%
EBITDA $ 23.1 $ 22.9 $ 28.6 $ 99.7
EBITDA margin % 10.2% 10.1% 12.0% 10.8%
EBIT $ 19.0 $ 19.7 $ 25.8 $ 83.1
EBIT margin % 8.4% 8.7% 10.8% 9.0%
Net income $ 11.7 $ 12.2 $ 15.5 $ 50.8
Net income
margin % 5.2% 5.4% 6.5% 5.5%
EPS $ 0.38 $ 0.40 $ 0.51 $ 1.67
EPS growth % (20.8%) (20.0%) 112.5% -
</TABLE>
- ---------------
(1) Source: Company public documents, press releases and Management
guidance.
(2) 1997 Q1 revenue classification by product is estimated based on current
classification standards that include certain items in weight management
that were originally placed in the food & supplements category.
50
<PAGE> 76
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
PROJECTED FINANCIAL RESULTS(1)
<TABLE>
<CAPTION>
INCOME STATEMENT DATA ($ IN MILLIONS, EXCEPT PER SHARE DATA)
=============================================================================================================================
ESTIMATED PROJECTED FISCAL YEARS ENDED DECEMBER 31,
FYE -------------------------------------------------------------------
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Retail Sales $1,793.0 $1,877.0 $1,959.0 $2,063.0 $2,169.0 $2,274.0
Distributor Allowance (838.9) (878.5) (911.1) (964.2) (1,013.1) (1,060.8)
-------- -------- -------- -------- -------- --------
Net Sales $ 954.1 $ 998.5 $1,047.9 $1,098.8 $1,155.9 $1,213.2
Net sales growth % 10.1% 4.7% 4.9% 4.9% 5.2% 5.0%
Gross Margin $ 704.4 $ 741.3 $ 791.0 $ 834.3 $ 877.7 $ 921.5
Gross margin % 73.8% 74.2% 79.5% 75.9% 75.9% 76.0%
EBITDA $ 105.5 $ 108.7 $ 120.5 $ 123.5 $ 123.1 $ 127.5
EBITDA margin % 11.1% 10.9% 11.5% 11.2% 10.6% 10.5%
EBIT $ 91.2 $ 94.2 $ 104.6 $ 106.6 $ 105.0 $ 110.7
EBIT margin % 9.6% 9.4% 10.0% 9.7% 9.1% 9.1%
Net Income $ 56.0 $ 58.0 $ 64.7 $ 66.2 $ 65.8 $ 69.7
Net income margin % 5.9% 5.8% 6.2% 6.0% 5.7% 5.8%
EPS $ 1.85 $ 1.87 $ 2.09 $ 2.14 $ 2.12 $ 2.25
EPS growth % 15.6% 1.1% 11.8% 2.4% (0.9%) 6.1%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------------
(1) Source: Sage internal projections. Sage Management has provided revised
projections for 1999-2006.
51
<PAGE> 77
[BEAR STEARNS LETTERHEAD]
APPENDIX B
COUNTRY-SPECIFIC HISTORICAL AND PROJECTED RETAIL SALES
<PAGE> 78
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
HISTORICAL AND PROJECTED RETAIL SALES(1)
<TABLE>
<CAPTION>
($ IN MILLIONS)
=================================================================================================================================
1994A 1995A 1996A 1997A 1998A 1999E 2000E 2001E 2002E 2003E
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Japan $19 $82 $311 $526 $548 $508 $513 $519 $524 $529
Korea 0 0 2 15 31 130 130 130 130 137
Hong Kong 5 11 12 22 35 46 46 46 46 46
Taiwan 0 4 26 48 45 48 48 50 53 53
Other Asia 32 47 28 34 29 37 39 41 43 43
USA $295 $334 $280 $299 $364 $423 $435 $448 $462 $476
Brazil 0 24 76 50 46 39 39 39 39 40
Other Americas 59 48 34 45 61 86 91 95 99 104
Russia $0 $30 $142 $158 $97 $31 $32 $34 $36 $38
Italy 72 57 54 65 99 122 129 135 142 156
Germany 159 116 54 44 55 64 67 71 74 82
Other Europe 242 172 180 186 226 255 267 281 295 309
---- ---- ------ ------ ------ ------ ------ ------ ------ ------
Total Current Sources $884 $924 $1,200 $1,491 $1,635 $1,789 $1,836 $1,888 $1,942 $2,013
New Country Openings(2) 9 4 41 81 121 156
------ ------ ------ ------ ------ ------
Total Retail Sales $884 $924 $1,200 $1,491 $1,645 $1,793 $1,877 $1,969 $2,063 $2,169
==== ==== ====== ====== ====== ====== ====== ====== ====== ======
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------------
(1) Source: Sage internal figures per revised Management plan.
(2) Including India and China.
52
<PAGE> 79
[BEAR STEARNS LETTERHEAD]
APPENDIX C
VALUATION MULTIPLES OVER TIME FOR COMPARABLE COMPANIES
<PAGE> 80
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
COMPARISON: MARKET CAPITALIZATION
================================================================================
<TABLE>
12/31/97 6/30/98 9/9/99 1/19/00(2)
<S> <C> <C> <C> <C>
SAGE(1) $611 $710 $383 NA
NATR $483 $416 $170 $152
NBTY $621 $1,190 $616 $887
NTOL NA NA $100 $89
NUS $1,497 $1,665 $1,043 $802
NUTR NA $124 $52 $48
RXSD $2,049 $2,517 $785 $761
TWLB $676 $1,379 $238 $251
USNA $116 $202 $85 $50
WNI $304 $421 $101 $85
</TABLE>
- --------------------------------------------------------------------------------
- --------------
(1) Assuming Class A share prices for both Class A and Class B shares
outstanding.
(2) Prices as of January 19, 2000 except for Sage which are as of September
9, 1999.
(3) Source: 12/31/97 and 6/30/98--FactSet Research Systems.
(4) Equity value calculated based on latest company reports or press
releases using fully diluted shares outstanding.
53
<PAGE> 81
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
COMPARISON: LTM EBITDA MULTIPLES(1)
================================================================================
<TABLE>
<CAPTION>
SAGE NATR NBTY
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4.9x 5.7x 2.7x NA 12.3x 9.5x 3.6x 3.4x 13.0x 16.3x 8.6x 11.1x
</TABLE>
<TABLE>
<CAPTION>
NTOL NUS NUTR
<S> <C> <C> <C> <C> <C> <C> <C> <S> <C> <C> <C>
NA NA 5.6x 4.7x 7.8x 9.8x 5.3x 4.4x NA 7.1x 5.2x 5.0x
</TABLE>
<TABLE>
<CAPTION>
RXSD TWLB USNA
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
27.5x 27.1x 6.8x 6.9x 15.4x 23.6x 6.0x 8.1x 8.8x 11.8x 4.3x 3.5x
</TABLE>
<TABLE>
<CAPTION>
WNI
<C> <C> <C> <C>
10.6x 13.5x 6.7x 5.1x
</TABLE>
- --------------------------------------------------------------------------------
- ------------------------
(1) Assuming Class A share prices for both Class A and Class B shares
outstanding.
(2) Prices as of January 19, 2000 except for Sage which is as of September
9, 1999.
(3) Source: FactSet Research Systems.
(4) LTM EBITDA and latest balance sheets per company reports or press
releases.
54
<PAGE> 82
[BEAR STEARNS LETTERHEAD AND PROJECT TITLE]
COMPARISON: LTM P/E MULTIPLES(1)
<TABLE>
<CAPTION>
================================================================================
SAGE NATR NBTY
<S> <C> <C>
12.1x 13.0x 7.2x 24.3x 19.5x 7.9x 7.9x 22.9x 34.0x 25.6x 29.9x
</TABLE>
<TABLE>
<CAPTION>
NTOL NUS NUTR
<S> <C> <C>
NA NA 11.6X 10.4X 13.5x 14.3x 9.6x 8.2x NA 25.0x 9.5x 9.6x
</TABLE>
<TABLE>
<CAPTION>
RXSD TWLB USNA
<S> <C> <C>
48.7x 42.5x 13.0x 13.0X 26.9x 41.2x 1.5x 18.9x 18.3x 26.2x 9.3x 7.4x
</TABLE>
<TABLE>
<CAPTION>
WNI
<S> <C>
61.6x 30.4x 15.7x 13.8x
</TABLE>
- --------------------------------------------------------------------------------
- -------------------
(1) Based on Class A share prices.
(2) Prices as of January 19, 2000 except for Sage which is as of September
9, 1999.
(3) Source: FactSet Research Systems.
(4) Based on LTM earnings per share.
55
<PAGE> 1
[HERBALIFE LOGO]
- --------------------------------------------------------------------------------
HERBALIFE INTERNATIONAL, INC.
1800 Century Park East, Los Angeles, California 90067
Tel: (310) 410-9600; Fax: (310) 557-3929
FIRST SUPPLEMENT TO INFORMATION STATEMENT
Herbalife International, Inc., a Nevada corporation (the "Company"), hereby
amends and supplements, as set forth herein, its Information Statement, filed on
October 15, 1999 (the "Information Statement"), pursuant to which the Company
informed you of the merger that will occur if MH Millennium Acquisition Corp., a
wholly-owned subsidiary of MH Millennium Holdings LLC, completes its tender
offer for all outstanding shares of Class A common stock and Class B common
stock of the Company, at $17.00 per share. This first supplement to the
Information Statement (the "First Supplement") provides supplemental information
about the merger, the tender offer and the background of these transactions.
This First Supplement should be read in conjunction with the Information
Statement. Except as set forth in this First Supplement, the terms and
conditions previously set forth in the Information Statement remain applicable
in all respects to the merger and the tender offer. Terms used but not defined
in this First Supplement have the meanings set forth in the original Information
Statement.
February 4, 2000
<PAGE> 2
SPECIAL FACTORS
BACKGROUND OF THE OFFER AND THE MERGER. The discussion set forth in
"Special Factors -- Background of the Offer and the Merger" in the Information
Statement is hereby amended as follows:
To amend the third paragraph on page 4 to read in its entirety as follows:
Beginning in September 1998, senior executives of Herbalife and Mr.
Hughes began to have preliminary communications with several investment
banking firms concerning possible alternatives to increase shareholder
value. Certain of these firms addressed the advantages and disadvantages of
various capital-markets transactions, including a going private
transaction, a leveraged recapitalization transaction financed in part by a
private equity sponsor and a "Dutch auction" self-tender by Herbalife.
Based on the discussions with these investment banks and the factors
discussed above, Mr. Hughes and Herbalife's senior management determined
that a going private transaction was superior to the other alternatives in
terms of enhancing shareholder value. From September 1998 through March
1999, senior executives of Herbalife interviewed several investment banking
firms to obtain their views concerning the advisability of, and their
qualifications to advise senior executives of Herbalife on the structuring
and financing of, such a transaction.
During this period, senior executives of Herbalife were approached by
the private equity sponsor firm of Saunders, Karp & Megrue regarding a
possible going private transaction. After an initial meeting in October
1998, Herbalife entered into a confidentiality agreement with Saunders,
Karp & Megrue and provided information to that firm pursuant to the
agreement. In early April 1999, Saunders, Karp & Megrue presented
management with a preliminary proposed structure for a possible going
private transaction in which the Company's public stockholders would
receive $16.50 per share. As part of this proposed structure, Saunders,
Karp & Megrue would provide $35 million to purchase preferred stock
representing over twenty percent of the equity of Herbalife. Saunders, Karp
& Megrue had not arranged for the financing of the proposed structure nor
had it obtained any financing commitments. Following its presentation of
the proposed structure to Herbalife management, Saunders, Karp & Megrue did
not submit an offer to purchase.
Representatives of Donaldson, Lufkin & Jenrette Securities Corporation
("Donaldson, Lufkin & Jenrette") were first interviewed on March 31, 1999.
At that time and in subsequent meetings and conversations, representatives
of Donaldson, Lufkin & Jenrette provided preliminary views concerning the
feasibility and financing of a going private transaction, as well as other
possible transaction structures. On April 23, 1999, Herbalife formally
engaged Donaldson, Lufkin & Jenrette to advise Herbalife and to arrange for
the financing for a possible transaction. Such engagement did not include a
request to render, and Donaldson, Lufkin & Jenrette has not at any time
rendered, an opinion with respect to the fairness of any price proposed in
connection with the going private transaction.
To insert the following immediately after the third full paragraph on page
11:
Following public announcement of the execution of the Merger
Agreement, several putative class action lawsuits were filed challenging
the proposed transactions. During the period from November 1999 through
January 2000, counsel for the Company and the Company's directors and
counsel for the plaintiffs in these lawsuits engaged in discussions
regarding the possible settlement of these lawsuits. On or about January 6,
2000, the parties entered into a definitive Stipulation of Settlement. See
"Special Factors -- Certain Litigation" and "-- Settlement of Litigation"
for a description of the lawsuits and the settlement. On January 7, 2000,
the parties presented the Stipulation of Settlement to the District Court
of Clark County, Nevada (the "Court"). On the same date, the Court signed
the order granting preliminary approval of the Stipulation of Settlement.
For a description of the Stipulation of Settlement, including the
conditions to its effectiveness and the making of the Supplemental Payment,
see "Special Factors -- Settlement of Litigation". There can be no
assurance that final court approval of the settlement will be obtained or
that the Supplemental Payment will be made.
2
<PAGE> 3
Pursuant to the Stipulation of Settlement, on January 13, 2000, the First
Supplement and the notice of pendency were circulated to the Settlement Class.
At the January 24, 2000 meeting of the Special Committee, Bear Stearns
delivered its opinion (the "Bear Stearns Updated Opinion" or the "Updated
Opinion") to the effect that, as of January 23, 2000, and subject to the
assumptions and qualifications set forth therein, the consideration to be
received in the Offer and the Merger, plus the Supplemental Payment, was fair,
from a financial point of view, to the Public Stockholders. For a description of
the Updated Opinion, see "Special Factors -- Updated Opinion of Financial
Advisor to the Special Committee".
UPDATED OPINION OF FINANCIAL ADVISOR TO THE SPECIAL COMMITTEE. Immediately
following the discussion set forth in "Special Factors -- Opinion of Financial
Advisor to the Special Committee" on page 20 of the Information Statement,
insert the following:
UPDATED OPINION OF FINANCIAL ADVISOR TO THE SPECIAL COMMITTEE
At the January 24, 2000 meeting of the Special Committee, Bear Stearns
delivered its opinion (the "Bear Stearns Updated Opinion" or the "Updated
Opinion") to the effect that, as of January 23, 2000, and subject to the
assumptions and qualifications set forth therein, the consideration to be
received in the Offer and the Merger, plus the Supplemental Payment, was fair,
from a financial point of view, to the Public Stockholders.
THE FULL TEXT OF THE BEAR STEARNS UPDATED OPINION, WHICH SETS FORTH THE
ASSUMPTIONS MADE, MATTERS CONSIDERED AND QUALIFICATIONS AND LIMITATIONS ON THE
REVIEW UNDERTAKEN BY BEAR STEARNS, IS ATTACHED AS ANNEX A TO THIS FIRST
SUPPLEMENT TO THE INFORMATION STATEMENT, AND IS INCORPORATED HEREIN BY
REFERENCE. THE SUMMARY OF THE BEAR STEARNS UPDATED OPINION SET FORTH IN THIS
FIRST SUPPLEMENT TO THE INFORMATION STATEMENT IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO THE FULL TEXT OF THE BEAR STEARNS UPDATED OPINION. HERBALIFE
STOCKHOLDERS ARE URGED TO READ CAREFULLY THE BEAR STEARNS UPDATED OPINION IN ITS
ENTIRETY.
The Updated Opinion is expressly intended for the benefit and use of the
Special Committee and does not constitute a recommendation to the Special
Committee or any holders of Shares as to whether to tender their Shares in the
Offer. The Updated Opinion does not address the Continuing Stockholder's
underlying business decision to pursue the Offer and the Merger.
The consideration to be received by the Public Stockholders in the Offer
and the Merger was determined by Mr. Hughes and the Special Committee through
arm's-length negotiations. Although Bear Stearns was consulted and provided
certain advice to the Special Committee from time to time during the course of
such negotiations, the consideration to be received was not based on any
recommendation by Bear Stearns. The Special Committee did not provide specific
instructions to, or place any limitations upon, Bear Stearns with respect to the
procedures to be followed or factors to be considered by Bear Stearns in
performing its analyses or rendering the Bear Stearns Updated Opinion. The
Supplemental Payment was determined through negotiations between counsel for the
Settlement Class Members and counsel for Defendants in the Class Action.
In the course of performing its review and analyses for rendering the
Updated Opinion, Bear Stearns:
- reviewed the Merger Agreement and the Stipulation of Settlement;
- reviewed Herbalife's Annual Reports to Shareholders and Annual Reports on
Form 10-K for the years ended December 31, 1996 through 1998, and its
Quarterly Reports on Form 10-Q for the periods ended March 31, 1999, June
30, 1999 and September 30, 1999;
- reviewed certain operating and financial information, including revised
projections, provided to Bear Stearns by management relating to
Herbalife's business and prospects;
- met with certain members of Herbalife's senior management to discuss
Herbalife's business, operations, historical and revised projected
financial statements and future prospects;
3
<PAGE> 4
- reviewed the historical prices, valuation parameters and trading volumes
of the Class A Shares and Class B Shares of Herbalife;
- reviewed publicly available financial data, stock market performance data
and valuation parameters of companies which Bear Stearns deemed generally
comparable to Herbalife;
- reviewed the terms of recent acquisitions of companies which Bear Stearns
deemed generally comparable to Herbalife;
- performed discounted cash flow analyses based on the revised projections
for Herbalife furnished to Bear Stearns; and
- conducted other studies, analyses, inquiries and investigations that Bear
Stearns deemed appropriate.
In the course of its review, Bear Stearns relied upon and assumed, without
independent verification, the accuracy and completeness of the financial and
other information, including without limitation the revised projections provided
to it by Herbalife. With respect to Herbalife's revised projected financial
results, Bear Stearns assumed that they were reasonably prepared on bases
reflecting the best currently available estimates and judgments of the senior
management of Herbalife as to the expected future performance of Herbalife.
Further, Bear Stearns has relied upon representations of the senior management
of Herbalife that the audited 1999 financial results, when available, will not
vary materially from Herbalife's estimated 1999 financial results. Bear Stearns
did not assume any responsibility for the independent verification of any such
information or of the revised projections provided to Bear Stearns, and Bear
Stearns further relied upon the assurances of the senior management of Herbalife
that they were unaware of any facts that would make the information and
projections provided to Bear Stearns incomplete or misleading. In arriving at
the Updated Opinion, Bear Stearns did not perform or obtain any independent
appraisal of the assets or liabilities of Herbalife, nor was Bear Stearns
furnished with any such appraisals.
Bear Stearns noted that the Continuing Stockholder owns a majority of the
Class A Shares and Class B Shares of Herbalife. Bear Stearns also noted that the
Continuing Stockholder has represented to Bear Stearns and to the Special
Committee that he has no intention of selling any of his Shares. Accordingly,
neither Bear Stearns nor the Special Committee solicited, nor was Bear Stearns
asked to solicit, third party acquisition interest in Herbalife. Bear Stearns
assumed that the representations and warranties made in the Merger Agreement
were true and that the Offer and the Merger will be completed in accordance with
the terms of the Merger Agreement. The Bear Stearns Updated Opinion is
necessarily based on economic, market and other conditions, and the information
made available to Bear Stearns, as of the date at such Updated Opinion.
In connection with preparing and rendering the Bear Stearns Updated
Opinion, Bear Stearns performed a variety of valuation, financial and
comparative analyses. The summary of such analyses, as set forth below, does not
purport to be a complete description of the analyses underlying the Bear Stearns
Updated Opinion. The preparation of a fairness opinion is a complex process and
is not necessarily susceptible to summary description. Bear Stearns believes
that its analyses must be considered as a whole, and that selecting portions of
its analyses and the factors considered by it, without considering all such
factors and analyses, could create an incomplete view of the processes
underlying the Updated Opinion. Moreover, the estimates contained in such
analyses are not necessarily indicative of actual values or predictive of future
results or values, which may be significantly more or less favorable than those
suggested by such analyses. In addition, analyses relating to the value of
businesses or securities do not purport to be appraisals or necessarily reflect
the prices at which businesses or securities actually may be sold. Accordingly,
such estimates are inherently subject to substantial uncertainties.
The following is a summary of the material valuation, financial and
comparative analyses performed by Bear Stearns in arriving at the Bear Stearns
Updated Opinion as of the date thereof.
(i) Comparable Public Company Analysis. In the course of its analysis, Bear
Stearns compared certain ratios and multiples of Herbalife to the corresponding
ratios and multiples of certain publicly-traded companies that Bear Stearns
believed were generally comparable to Herbalife (the "Comparable Companies").
The Comparable Companies included Natrol, Inc., Nature's Sunshine Products,
Inc., NBTY, Inc., Nu Skin Enterprises, Inc., Nutraceutical International
Corporation, Rexall Sundown, Inc., Twinlab Corpora-
4
<PAGE> 5
tion, USANA, Inc. and Weider Nutrition International, Inc. The multiples and
ratios were calculated based on publicly available financial information and
research reports, and were adjusted for certain extraordinary and non-recurring
items. Financial data reviewed included revenue, earnings before interest,
taxes, depreciation and amortization ("EBITDA"), earnings before interest and
taxes ("EBIT"), net income and earnings per share ("EPS") for various time
periods as well as certain operating margins, valuation statistics, financial
ratios and projected growth rates. For purposes of its analysis, Bear Stearns
also reviewed the harmonic mean of certain valuation multiples of the Comparable
Companies.
Among other analyses, for each of the Comparable Companies, Bear Stearns
calculated the ratio of their equity value as of January 19, 2000 plus debt less
cash and cash equivalents ("Enterprise Value") to their respective revenues,
EBITDA and EBIT during the most recent 12-month period ("LTM") and projected
calendar 1999 and 2000 revenues, EBITDA and EBIT and the ratios of their stock
prices as of January 19, 2000 to their respective LTM earnings per share and
projected calendar year 1999 and 2000 earnings per share. References to "P/E" in
the tables below refers to a price to EPS multiple.
Results of those analyses are summarized as follows:
REVENUE, EBITDA AND EBIT MULTIPLES
<TABLE>
<CAPTION>
ENTERPRISE VALUE/
------------------------------------------------------------------------------------
LTM PROJECTED CALENDAR 1999 PROJECTED CALENDAR 2000
-------------------------- -------------------------- --------------------------
REVENUES EBITDA EBIT REVENUES EBITDA EBIT REVENUES EBITDA EBIT
-------- ------ ------ -------- ------ ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HERBALIFE TRANSACTION MULTIPLE......... 0.52x 4.8x 5.8x 0.50x 4.6x 5.3x 0.48x 4.4x 5.1x
COMPARABLE COMPANIES MULTIPLE RANGE:
Low.................................. 0.46x 3.4x 4.2x 0.49x 3.3x 4.1x 0.40x 2.4x 3.0x
Harmonic Mean........................ 0.74 5.1 6.5 0.81 5.5 6.8 0.65 4.4 5.5
High................................. 1.73 11.1 16.0 1.71 10.6 15.2 1.05 7.9 9.6
SHARE PRICE IMPUTED BY MULTIPLE:
Low.................................. $16.98 $14.70 $14.90 $18.22 $14.84 $15.70 $16.44 $12.59 $13.06
Harmonic Mean........................ 24.33 19.29 20.25 26.66 21.21 22.48 23.22 18.38 19.50
High................................. 49.56 35.93 42.09 50.35 36.37 43.55 34.25 29.13 30.40
</TABLE>
P/E MULTIPLES
<TABLE>
<CAPTION>
CALENDAR CALENDAR
LTM 1999 2000
P/E P/E P/E
------ -------- --------
<S> <C> <C> <C>
HERBALIFE TRANSACTION MULTIPLE.......................... 10.7x 9.6x 9.5x
COMPARABLE COMPANIES MULTIPLE RANGE:
Low................................................... 7.4x 7.3x 5.3x
Harmonic Mean......................................... 11.0 11.7 8.0
High.................................................. 29.9 27.1 16.9
SHARE PRICE IMPUTED BY MULTIPLE:
Low................................................... $12.35 $13.43 $ 9.82
Harmonic Mean......................................... 18.34 21.67 15.02
High.................................................. 49.85 50.19 31.53
</TABLE>
Bear Stearns noted that the Comparable Companies that distributed their
products predominantly through use of multi-level marketing generally traded at
discounts to those companies which used traditional distribution channels.
Further, Bear Stearns observed that the companies which traded above the
harmonic mean tended to be larger companies (relative to Herbalife) in terms of
equity market capitalization and value of public float. Bear Stearns also noted
that earnings forecasts were not generally available for certain of the smaller
Comparable Companies, which may provide an upward bias to the harmonic means of
forecasted earnings.
5
<PAGE> 6
Bear Stearns also analyzed the historical and revised projected financial
performance of Herbalife as well as the historical and projected financial
performance of the Comparable Companies. Bear Stearns observed that Herbalife's
historical growth rates of revenues and earnings were generally lower than those
of the Comparable Companies and that such slower growth was generally expected
to continue in the future based on the revised management projections. Bear
Stearns also compared Herbalife's profit margins to those of the Comparable
Companies and noted that Herbalife's margins were generally lower than those of
the Comparable Companies.
Bear Stearns chose the Comparable Companies because they have general
business, operating and financial characteristics similar to those of Herbalife.
However, Bear Stearns noted that no company used in the foregoing analysis is
identical to Herbalife. Accordingly, Bear Stearns did not rely solely on the
mathematical results of the analysis, but also made qualitative judgments
concerning differences in financial and operating characteristics of Herbalife
and the Comparable Companies and other factors that could affect the values of
each.
(ii) Comparable Transactions Analysis. Bear Stearns reviewed certain
publicly-available financial information related to 14 merger and acquisition
transactions completed or pending completion over the prior four years that it
deemed generally comparable to the Transaction (the "Comparable Transactions").
For each of the Comparable Transactions, Bear Stearns reviewed certain
publicly-available financial information for the acquired companies including
revenue, EBITDA, EBIT, net income and certain valuation statistics, as adjusted
for certain extraordinary and non-recurring items. Bear Stearns observed that
the multiples paid in the Comparable Transactions were generally substantially
higher than those implied for Herbalife in the Offer and the Merger. Bear
Stearns noted that all but two of these transactions took place prior to the
substantial decline in the stock prices of companies in thevitamin and
nutritional supplement sector beginning in the summer of 1998. Bear Stearns
noted that the equity market capitalizations for publicly-traded companies in
the vitamin and nutritional supplement sector in most cases fell by over 50%
(and in the case of one company as high as 83%) from June 1998 as compared to
September 1999. Valuation multiples for such companies fell similarly. Valuation
multiples for the Comparable Companies as of January 2000, with the exception of
NBTY, Inc., have remained at approximately the same levels, or slightly lower
levels, compared to September 1999. Accordingly, Bear Stearns put little weight
on its analysis of Comparable Transactions in reaching its valuation
conclusions.
Bear Stearns noted that no transaction used in the foregoing analysis is
identical to the Offer and the Merger. Accordingly, Bear Stearns did not rely
solely on the mathematical results of the analysis, but also made qualitative
judgments concerning differences in financial and operating characteristics of
the Comparable Transactions and other factors that could affect the value of the
companies or transactions to which Herbalife or the Offer and the Merger are
being compared.
6
<PAGE> 7
(iii) Discounted Cash Flow Analysis. In the course of this analysis, Bear
Stearns, based on revised management projections, calculated a stream of future
unlevered free cash flows for the years ended December 31, 2000 to 2006.
Unlevered free cash flow, as calculated by Bear Stearns, is equal to
tax-effected earnings before interest and taxes (EBIT) plus depreciation and
amortization less capital expenditures and working capital requirements. The
cash flows were discounted at certain discount rates ranging from 12.0% to
16.0%, based on a weighted average cost of capital estimated, in part, by using
the Comparable Companies. A terminal value was calculated to estimate the value
of all future cash flows by using a growing perpetuity of the 2006 (the last
projected year) cash flow, assuming perpetual growth rates of between 0.0% to
4.0%. Such perpetual growth rates imply terminal value multiples of EBITDA of
3.9x to 5.7x (at a discount rate of 14%). The summation of the present value of
the projected unlevered free cash flows and the present value of the terminal
value yielded per share results is summarized in the following table:
<TABLE>
<CAPTION>
PERPETUAL GROWTH RATES
------------------------------------------
0.0% 1.0% 2.0% 3.0% 4.0%
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Discount Rates:
12.0%......................................... $21.03 $21.84 $22.81 $23.99 $25.48
14.0%......................................... 18.57 19.10 19.71 20.44 21.31
16.0%......................................... 16.73 17.09 17.50 17.98 18.53
</TABLE>
Bear Stearns also performed certain sensitivity analyses assuming higher
and lower revenue growth rates (+/- 5% revenue growth rate from the management
projections) and higher and lower profit margins (+/- 2% EBITDA margin). Such
analyses produced values for Herbalife of $13.40 to $27.39 per share.
(iv) Public Shareholder Valuation Analysis. Bear Stearns examined the
present value to stockholders of holding Herbalife stock for three and five
years. Specifically, Bear Stearns assumed that Herbalife continued to pay
dividends at the current level and that the hypothetical stock price in three
and five years was estimated based on multiplying projected EPS (based on the
revised management projections) by a range of P/E multiples. The sum of the
present value of the dividend stream and the present value of the estimated
stock price at the end of the projected period was used to determine a
hypothetical current value for the stock. Bear Stearns used a range of discount
rates from 12.0% to 20.0%, based on the estimated cost of equity capital for
Herbalife. The range of present values of the projected dividend payments and
the estimated future stock price after five years is summarized in the following
table:
<TABLE>
<CAPTION>
P/E MULTIPLE -- YEAR 5
------------------------------------------
8.0X 10.0X 12.0X 14.0X 16.0X
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Discount Rates:
12.0%......................................... $12.38 $14.93 $17.48 $20.04 $22.59
14.0%......................................... 11.41 13.75 16.08 18.42 20.76
16.0%......................................... 10.53 12.68 14.82 16.96 19.10
18.0%......................................... 9.74 11.71 13.68 15.64 17.61
20.0%......................................... 9.03 10.84 12.64 14.45 16.26
</TABLE>
Similarly, Bear Stearns performed such analysis using the future stock
price after three years. Based on this analysis, a range of stock prices from
$11.16 to $25.78 was calculated.
(v) Historical Stock Price Analysis. Bear Stearns reviewed the historical
closing stock prices of Herbalife Class A Shares and Herbalife Class B Shares.
Over the prior twelve months ending on September 9, 1999, (which was shortly
prior to the Transaction announcement on September 13, 1999), Herbalife's Class
A Shares had traded between a high of $16.25 on January 14, 1999 and a low of
$7.50 on October 8, 1998 and Herbalife's Class B Shares traded between a high of
$13.00 on January 14, 1999, and a low of $6.00 on October 8, 1998. Bear Stearns
also observed that Herbalife's non-voting Class B Shares have consistently
traded at a substantial discount to the voting Class A Shares since the
recapitalization in December 1997 and up to the Transaction announcement.
Bear Stearns noted that the stock prices of Herbalife during 1997 and the
first half of 1998 were generally above $20.00, with the stocks trading for a
short period of time above $30.00. Bear Stearns also noted that the
7
<PAGE> 8
stock prices of Herbalife fell significantly during the summer of 1998, which
coincided with (i) difficult market conditions and reduced financial performance
in certain of Herbalife's international markets, including Russia, and (ii) an
overall decline in the stock prices for companies in the vitamin and nutritional
supplement sector due in part to perceived slowing of industry growth rates and
increased competition in the sector.
Bear Stearns observed that, based on the proposed transaction price to the
Public Stockholders of $17.81 per share (including the Supplemental Payment) for
both the Class A Shares and the Class B Shares, the following premia were
applicable as of September 9, 1999:
<TABLE>
<CAPTION>
TRANSACTION PREMIUM OVER
PERIOD PRIOR TO --------------------------------
TRANSACTION ANNOUNCEMENT CLASS A SHARES CLASS B SHARES
------------------------ -------------- --------------
<S> <C> <C>
One-Day Prior............................................ 47.6% 91.2%
One-Month Prior.......................................... 49.2 86.2
20 Trading Days Average.................................. 48.2 90.5
One-Year Average......................................... 50.5 87.0
52-Week High............................................. 9.6 37.0
52-Week Low.............................................. 137.5 196.8
</TABLE>
Bear Stearns compared these premia with those of certain "going private"
and "minority buy-in" transactions which it deemed comparable and found that the
premia to be paid in the Transaction to the Class A Shares were generally above
the premia paid in such transactions, with the premia to the Class B Shares
generally at the high end of such transactions. Bear Stearns further noted that
while premia analyses are an indicia of value, such analyses by themselves were
not sufficient to reach conclusions as to financial fairness.
(vi) Other Analyses. Bear Stearns conducted such other analyses as it
deemed necessary, including the following:
- reviewing historical and revised projected financial and operating data
for Herbalife;
- analyzing selected investment research reports on, and earnings and other
estimates for, Herbalife;
- analyzing the historic stock performance and trading volume for both
classes of Herbalife common stock, prior to the Transaction announcement;
- analyzing the historic dividend payments and dividend yields of
Herbalife;
- reviewing available information regarding the institutional holdings of
both classes of Herbalife common stock, prior to the Transaction
announcement; and
- analyzing illustrative investment returns to a potential financial buyer
in a hypothetical third-party leveraged buyout of Herbalife.
The Special Committee engaged Bear Stearns as its financial advisor based
on Bear Stearns' experience and expertise. Bear Stearns is an internationally
recognized investment banking firm that has substantial experience in the
healthcare and consumer products industries and expertise in transactions
similar to the Transaction. As part of its investment banking business, Bear
Stearns is continuously engaged in the valuation of businesses and securities in
connection with mergers and acquisitions, negotiated underwritings, competitive
biddings, secondary distributions of listed and unlisted securities, private
placements and valuations for estate, corporate and other purposes. Pursuant to
the terms of its engagement letter dated July 21, 1999 (as amended on January
10, 2000) (the "Bear Stearns Engagement Letter"), the Special Committee has
agreed to have Herbalife (i) pay Bear Stearns a non-refundable retainer in the
amount of $400,000, (ii) pay Bear Stearns a fee of $1.35 million in connection
with the delivery of the Bear Stearns Opinion, (iii) pay Bear Stearns a fee of
$500,000 in connection with the delivery of the Bear Stearns Updated Opinion and
(iv) reimburse Bear Stearns for all reasonable out-of-pocket expenses (including
fees and disbursements of counsel, and of other consultants and advisors
retained by Bear Stearns). Herbalife has also agreed to indemnify Bear Stearns
and certain related persons against certain liabilities in connection with its
engagement, including certain liabilities under the federal securities laws. In
the ordinary course of business, Bear Stearns may actively trade the equity
8
<PAGE> 9
securities of Herbalife for its own account and for the accounts of its
customers and, accordingly, may at any time hold a long or short position in
such securities.
CERTAIN FINANCIAL PROJECTIONS. The discussion set forth in "Special
Factors -- Certain Financial Projections" in the Information Statement is hereby
amended as follows:
To insert the following after the carry-over paragraph on page 26:
Following the completion of company projections for the fiscal years
1999 through 2006 referred to above, the Company published actual results
for the nine months ended September 30, 1999, and revised the estimates of
its results for the last quarter of 1999. These actual and revised
estimated results exceeded the results originally projected for 1999. Based
on these actual and revised estimated results, the Company has revised its
projections for fiscal year 1999 as follows: total retail sales of $1,793
million, net income of $56 million, and EBITDA of $105.5 million. The
assumptions underlying the company projections remain the same as described
above, except that the projections for the fiscal years 2000 through 2006
are based on the higher than projected 1999 actual and revised estimated
results. Accordingly, for the years 2000 through 2006, the revised Company
Projections are as follows: total retail sales of $1,877 million, $1,969
million, $2,063 million, $2,169 million, $2,274 million, $2,387 million and
$2,507 million; net income of $58 million, $64.7 million, $66.2 million,
$65.8 million, $69.7 million, $74 million and $78.6 million; and EBITDA of
$108.7 million, $120.5 million, $123.5 million, $123.1 million, $127.5
million, $132.4 million and $138.7 million.
CERTAIN LITIGATION. The discussion set forth in "Special Factors -- Certain
Litigation" in the Information Statement is hereby amended to read in its
entirety as follows:
On September 14, 1999, a putative class action lawsuit entitled
Colleen M. Tharp vs. Herbalife International, Inc., et al., Case No.
A408158 was filed in the District Court, Clark County, Nevada, challenging
the fairness of the proposed transaction. Three similar lawsuits were later
filed in the same court, one on September 15, 1999 entitled Kenneth
Schweitzer v. Herbalife International, Inc. et al., Case No. BC 216823, and
two on September 22, 1999, one entitled Kevin Coyle vs. Mark Hughes, et
al., Case No. A408466 and another entitled Charles Fruscione and Jerome
Glowacki vs. Herbalife International, Inc., et al., Case No. A408478. On
October 6, 1999, the District Court, Clark County, Nevada entered an order
consolidating these lawsuits under the caption In re: Herbalife
International, Inc., Litigation, Case No. A408158 (the "Class Action"). In
addition, eight similar lawsuits were filed in the Superior Court of the
State of California, County of Los Angeles. On September 14, 1999, three
putative class action lawsuits were filed, one entitled Patricia Lisa and
Harbor Finance Partners v. Mark Hughes, et al., Case No. BC 216711, one
entitled Kevin Coyle v. Mark Hughes, et al., Case No. BC 216759 and one
entitled Stuart H. Savett v. Herbalife International, Inc., et al., Case
No. BC 216761. One other was filed on September 15, 1999 entitled Kenneth
Schweitzer v. Herbalife International, Inc., et al., Case No. BC 216823.
Two others were filed on September 16, 1999, entitled Frances Longstreth v.
Herbalife International, Inc., et al., Case No. BC 216911 and Rae Ellen
Plattus vs. Christopher Pair, et al., Case No. BC 16904. One was filed on
September 17, 1999, entitled Lee Brenin vs. Mark Hughes, et al., Case No.
BC 216932, and one was filed on September 23, 1999, entitled Michael Vaupel
vs. Mark Hughes, et al., Case No. BC 217257. By stipulation of the parties,
all California proceedings have been stayed pending the outcome of the
Class Action. The lawsuits referred to in this paragraph are referred to
collectively herein as the "Lawsuits."
The Lawsuits challenge the fairness of the proposed transaction to the
Company's Public Stockholders, alleging, among other things, that the price
to be paid in the Offer and the Merger does not reflect the value of the
Company's assets, and that the Offer and the Merger are unfair because they
will deprive the Public Stockholders of the ability to share
proportionately in the Company's future growth in profits and earnings. The
Lawsuits also allege that the Special Committee was not independent, and
that the Company's directors breached their fiduciary duties to the Public
Stockholders in approving the proposed transactions. The plaintiffs have
requested an injunction prohibiting the defendants from proceeding with the
proposed transactions, unspecified damages, costs and attorneys' fees, and
other relief.
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<PAGE> 10
SETTLEMENT OF LITIGATION. Immediately following the discussion set forth in
"Special Factors -- Certain Litigation" on page 26 of the Information Statement,
insert the following:
SETTLEMENT OF LITIGATION
As of January 6, 2000, the parties to the Class Action entered into a
Stipulation of Settlement setting forth the terms of a settlement of the
Class Action (the "Stipulation of Settlement"). Pursuant to the terms of
the Stipulation of Settlement, members of the Settlement Class will receive
the Supplemental Payment. The "Settlement Class" is defined to mean all
persons, except Defendants (as defined in the Stipulation of Settlement),
members of the immediate family of any Defendant, any entity in which any
Defendant has a controlling ownership interest, Herbalife employees who
have been awarded stock options pursuant to the Company's stock option plan
(in their capacity as holders of such stock options), and the legal
representatives, heirs, successors or assigns of any such excluded party
who own Herbalife stock that is purchased in the Proposed Transaction (as
defined in the Stipulation of Settlement), or who exercise dissenters'
rights, and all holders of DECS securities issued by DECS Trust III, a
Delaware business trust, as of the date of the Closing. Stockholders who
are not members of the Settlement Class are not entitled to receive the
Supplemental Payment.
The Stipulation of Settlement provides that (i) the Purchaser shall
cause the Settlement Class to receive a payment of $0.81 for each Class A
or Class B share or DECS security under the terms and conditions of the
Stipulation of Settlement which are described below; (ii) the Defendants
are to request an opinion from Bear Stearns that $17.00 per share, plus the
Supplemental Payment of $0.81 per share, for total compensation of $17.81
per share is fair, from a financial point of view to the public
stockholders of Herbalife; (iii) the Defendants will reopen the period for
the exercise of dissenters rights until January 28, 2000, the current
expiration date for the tender offer, and, if the tender offer is extended,
the deadline for the exercise of dissenters' rights will be similarly
extended, but in no event later than February 14, 2000; (iv) with respect
to the condition to the Offer regarding the maximum number of dissenting
shares, the Purchaser may cancel the Offer only if dissenters' rights are
exercised with respect to more than 5% of the Company's outstanding stock;
(v) if an initial public offering of Herbalife of Japan is completed on or
before July 6, 2001, Herbalife shall pay to the Settlement Class for
distribution in accordance with their Herbalife holdings as of the time of
the purchase of their securities pursuant to the Proposed Transaction, the
greater of $15,000,000 or 20% of the net proceeds of the initial public
offering within 30 days of the closing of the initial public offering; (vi)
the Offer to Purchase will be amended to contain additional disclosure
(such additional disclosure is contained herein) describing (a) discussions
held with the firm of Saunders, Karp & Megrue concerning a possible
transaction; and (b) the Company's projections of future financial results
and how Herbalife's actual results for 1999 compare with its projected 1999
results, and to recirculate the First Supplement to the Settlement Class at
Herbalife's expense; and (vii) Herbalife will pay the costs of providing
notice of the terms of this settlement to the members of the Settlement
Class.
In addition, pursuant to the Stipulation of Settlement the Company
will pay the sum of $8,500,000, plus interest, to Representative Plaintiffs
Counsel (as defined in the Stipulation of Settlement) as payment for
attorneys' fees, expenses and costs (the "Fee and Expense Payment")
incurred in the Lawsuits. Payment of the Fee and Expense Payment is
contingent on the closing of the Merger.
The Stipulation of Settlement provides for the dismissal of the Class
Action with prejudice. The Stipulation of Settlement also provides for the
release of all claims of members of the Settlement Class, whether known or
unknown, against the Defendants in the Lawsuits and any of their past or
present directors, officers, employees, partners, principals, agents,
underwriters, insurers, co-insurers, reinsurers, controlling shareholders,
any entity in which the Defendant and/or any member(s) of any Defendant's
immediate family has or have a controlling interest, attorneys,
accountants, auditors, banks, investment banks or investment bankers,
advisors, personal or legal representatives, insurers, reinsurers,
predecessors, successors, parents, subsidiaries, divisions, joint ventures,
assigns, spouses, heirs, associates, related or affiliated entities, and
any members of their immediate families (collectively, the "releasees"),
whether under state or federal law, and based upon or related to the Offer
or to the facts, transactions, events, occurrences, acts, disclosures,
statements, omissions or failures to act which were or could have been
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<PAGE> 11
alleged in the Lawsuits, or in any other forum, based upon, relating to or
arising from the facts which were alleged in any papers filed in the
Lawsuits.
The settlement contemplated by the Stipulation of Settlement is
subject to the Judgment becoming Final. The "Judgment" is defined to mean
the judgment to be rendered by the court dismissing the Class Action with
prejudice. "Final" is defined to mean (i) the date of final affirmance on
an appeal from the Judgment, the expiration of the time for a petition for
a writ of certiorari to review the Judgment and, if certiorari be granted,
the date of final affirmance of the Judgment following review pursuant to
that grant; or (ii) the date of final dismissal of any appeal from the
Judgment or the final dismissal of any proceeding on certiorari to review
the Judgment; or (iii) if no appeal is filed, the expiration date of the
time for the filing or noticing of any appeal from the Court's judgment
approving the Stipulation of Settlement.
There can be no assurance that the Judgment will become Final.
Consequently, there can be no assurance, among other things, that the
Supplemental Payment will be made.
The Supplemental Payment will be made as follows:
If the Judgment becomes Final before the Expiration Date, the
Supplemental Payment shall be made (i) to any Settlement Class members
whose Herbalife shares have been accepted for payment in the Offer,
simultaneously with the payment of the Offer Price by delivery of the
Supplemental Payment to the Depositary for transmission to the tendering
Settlement Class members; (ii) to any other member of the Settlement Class
(other than holders seeking to perfect dissenters' rights, unless and until
dissenters' rights have been waived or relinquished), except as provided in
clause (iii) following, simultaneously with the payment of the Merger
Consideration by delivery of the Supplemental Payment to the Paying Agent
for transmission to such Settlement Class members whose shares are
cancelled in the Merger; and (iii) to the Settlement Class members with
respect to their holdings of DECS, by delivery of the Supplemental Payment
to the trustee of DECS Trust III for transmission to such Settlement Class
members in accordance with the terms of the trust governing DECS Trust III.
If the Judgment becomes Final after the Expiration Date, but before
the Closing of the Merger, the Supplemental Payment shall be made to all
Settlement Class members (other than holders seeking to perfect dissenters'
rights unless and until dissenters' rights have been waived or
relinquished) at the same time as the Merger Consideration is paid to
members of the Settlement Class who did not tender their Herbalife shares
in the Offer by delivery of the Supplemental Payment (i) in the case of
Settlement Class members whose Herbalife shares were accepted for payment
in the Offer, to the Depositary, which shall be instructed to make a
supplemental payment, in the amount of the Supplemental Payment, to such
Settlement Class members; (ii) in the case of any other Settlement Class
member (other than holders seeking to perfect dissenters' rights unless and
until dissenters' rights have been waived or relinquished), except as
provided in clause (iii) following, to the Paying Agent for transmission to
such Settlement Class members whose shares are cancelled in the Merger; and
(iii) to the Settlement Class members with respect to their holdings of
DECS, to the trustee of DECS Trust III for transmission to such Settlement
Class members in accordance with the terms of the trust governing DECS
Trust III.
If the Judgment becomes Final after the Closing of the Merger, the
Supplemental Payment shall be made to all Settlement Class members (other
than holders seeking to perfect dissenters' rights unless and until
dissenters' rights have been waived or relinquished) within 10 business
days of the date upon which the Judgment becomes Final by delivery of the
Supplemental Payment (i) in the case of Settlement Class members whose
Herbalife shares were accepted for payment in the Offer, to the Depositary,
which shall be instructed to make a supplemental payment, in the amount of
the Supplemental Payment, to such Settlement Class members; (ii) in the
case of any other Settlement Class member (other than holders seeking to
perfect dissenters' rights unless and until dissenters' rights have been
waived or relinquished), except as provided in clause (iii) following, to
the Paying Agent, which shall be instructed to make a supplemental payment,
in the amount of the Supplemental Payment, to such Settlement Class
members; and (iii) to the Settlement Class members with respect to their
holdings of DECS, to the trustee of DECS Trust III for transmission to such
Settlement Class members in accordance with the terms of the trust
governing DECS Trust III.
11
<PAGE> 12
The Defendants have denied that they have engaged in any wrongdoing
whatsoever, and have agreed to the settlement to eliminate the burden and
expense of further litigation and to permit the Offer and the Merger to
proceed without the risk of injunctive or other relief.
The foregoing summary of the Stipulation of Settlement is qualified in
its entirety by reference to the Stipulation of Settlement, a copy of which
has been filed as an exhibit to this Amendment No. 10 to the Schedule
14D-1.
THE MERGER
THE MERGER AGREEMENT. The discussion set forth in "The Merger -- The Merger
Agreement" in the Information Statement is hereby amended as follows:
To amend the seventh full paragraph on page 34 to read in its entirety as
follows:
(g) the number of Shares as to which the holders thereof have properly
exercised, or reasonably appear to have properly exercised, dissenters'
rights, if any, with respect to the Merger exceed five percent (5%) of the
total number of Shares outstanding as of the date of the Merger Agreement,
DISSENTERS' RIGHTS. The discussion set forth in "The Merger -- Dissenters'
Rights" in the Information Statement is hereby amended as follows:
To insert the following paragraph after the fourth full paragraph on page
37.
Pursuant to the Stipulation of Settlement, the period for the exercise
of dissenters' rights will be reopened until, but in no event later than,
February 14, 2000.
FINANCING OF THE OFFER AND THE MERGER. The discussion set forth in "The
Merger -- Financing of the Offer and the Merger" in the Information Statement is
hereby amended as follows:
To insert the following paragraph after the first paragraph on page 39:
Approximately $22.6 million will be required to fund the Supplemental
Payment and the Fee and Expense Payment agreed to under the Stipulation of
Settlement. For a description of the Stipulation of Settlement, see
"Special Factors -- Settlement of Litigation".
FEES AND EXPENSES. The discussion set forth in "The Merger -- Fees and
Expenses" in the Information Statement is hereby amended as follows:
To insert the following paragraph after the last paragraph under the
heading "Fees and Expenses" on page 40:
For a description of the payment of fees and expenses related to the
lawsuits, see "Special Factors -- Settlement of Litigation".
THE COMPANY
CERTAIN TRANSACTIONS. The discussion set forth in "The Company -- Certain
Transactions" in the Information Statement is hereby amended as follows:
To insert the following paragraph after the fourth full paragraph on page
48:
Pursuant to the Stipulation of Settlement, dated January 6, 2000, the
Defendants have agreed that if an initial public offering of Herbalife of
Japan is completed on or before July 6, 2001, Herbalife shall pay to the
Settlement Class for distribution in accordance with their Herbalife
holdings as of the time of the purchase of their securities pursuant to the
Proposed Transaction, the greater of $15,000,000 or 20% of the net proceeds
of the initial public offering within 30 days of the closing of the initial
public offering. For a description of the Stipulation of Settlement, see
"Special Factors -- Settlement of Litigation".
12
<PAGE> 13
ANNEX A
BEAR STEARNS LOGO BEAR STEARNS ADDRESS
January 23, 2000
The Special Committee of the Board of Directors
Herbalife International, Inc.
1800 Century Park East
Los Angeles, CA 90067
Gentlemen:
We understand that Herbalife International, Inc. ("Herbalife") and one or
more entities directly or indirectly controlled by Mark Hughes (the "Principal
Shareholder") entered into a merger agreement dated September 13, 1999, (the
"Agreement") pursuant to which all outstanding shares of Class A and Class B
common stock of Herbalife other than those already owned by the Principal
Shareholder will receive $17.00 per share in cash (the "Consideration to be
Received") by means of a tender offer (the "Tender Offer") followed by a
subsequent merger (the "Merger"). The Agreement also provides for the cashing
out of each outstanding option to acquire Herbalife common stock (other than
those held by the Principal Shareholder) at a price equal to $17.00 per share
less the applicable exercise price of such option. Further, the Agreement calls
for Herbalife to make certain loans (which may be forgiven under certain
circumstances) to the Principal Shareholder in the aggregate amount of
approximately $215 million (such series of transactions herein collectively
referred to as the "Transaction"). You have provided us with a copy of the
Agreement. We note that although the Principal Shareholder controls a majority
of the Class A and Class B common stock, the Agreement provides for a condition
to the Transaction that requires holders of at least a majority of the
outstanding shares of each class of Herbalife common stock not owned by the
Principal Shareholder to tender such shares in the Tender Offer. The Agreement
also provides for the right for holders of Class A and Class B common stock to
dissent and receive appraised value for their shares.
We also understand that on January 6, 2000 Herbalife reached a tentative
agreement to settle certain outstanding lawsuits related to the Transaction (the
"Stipulation of Settlement"). Under the Stipulation of Settlement, the Principal
Shareholder will be required, among other things, to make a supplemental payment
(the "Supplemental Payment") to the Settlement Class Members (as that term is
defined in the Stipulation of Settlement) in an amount equal to $0.81 per share
in cash.
You have asked us to render our opinion as to whether the Consideration to
be Received, together with the Supplemental Payment, is fair, from a financial
point of view, to the shareholders of Herbalife, excluding the Principal
Shareholder.
In the course of performing our review and analyses for rendering this
opinion, we have:
- reviewed the Agreement and the Stipulation of Settlement;
- reviewed Herbalife's Annual Reports to Shareholders and Annual Reports on
Form 10-K for the years ended December 31, 1996 through 1998, and its
Quarterly Reports on Form 10-Q for the periods ended March 31, 1999, June
30, 1999 and September 30, 1999.
- reviewed certain operating and financial information, including revised
projections, provided to us by management relating to Herbalife's
business and prospects;
- met with certain members of Herbalife's senior management to discuss
Herbalife's business, operations, historical and projected financial
statements and future prospects;
- reviewed the historical prices, valuation parameters and trading volumes
of the Class A and Class B common stock of Herbalife;
- reviewed publicly available financial data, stock market performance data
and valuation parameters of companies which we deemed generally
comparable to Herbalife;
A-1
<PAGE> 14
- reviewed the terms of recent acquisitions of companies which we deemed
generally comparable to Herbalife;
- performed discounted cash flow analyses based on the revised projections
for Herbalife furnished to us; and
- conducted such other studies, analyses, inquiries and investigations as
we deemed appropriate.
We have relied upon and assumed, without independent verification, the
accuracy and completeness of the financial and other information, including
without limitation the revised projections, provided to us by Herbalife. With
respect to Herbalife's revised projected financial results, we have assumed that
they have been reasonably prepared on bases reflecting the best currently
available estimates and relied upon the judgments of the senior management of
Herbalife as to the expected future performance of Herbalife, including
representations that the audited 1999 financial results, when available, will
not vary materially from Herbalife's estimated 1999 financial results. We have
not assumed any responsibility for the independent verification of any such
information or of the projections provided to us, and we have further relied
upon the assurances of the senior management of Herbalife that they are unaware
of any facts that would make the information and projections provided to us
incomplete or misleading. In arriving at our opinion, we have not performed or
obtained any independent appraisal of the assets or liabilities of Herbalife,
nor have we been furnished with any such appraisals.
We note that the Principal Shareholder owns a majority of the shares of
Class A and Class B common stock of Herbalife. We also note that the Principal
Shareholder has represented to us and to the Special Committee of the Board of
Directors of Herbalife (the "Special Committee") that he has no intention of
selling any of his holdings of Herbalife common stock. Accordingly, we have not
solicited, nor were we asked to solicit, third party acquisition interest in
Herbalife. We have assumed that the representations and warranties made in the
Agreement are true and that the Transaction (including the Merger) will be
completed in accordance with the terms of the Agreement. Our opinion is
necessarily based on economic, market and other conditions, and the information
made available to us, as of the date hereof.
We have acted as a financial advisor to the Special Committee in connection
with the Transaction and have received a fee for such services. In the ordinary
course of business, Bear Stearns may actively trade the equity and debt
securities of Herbalife for our own account and for the account of our customers
and, accordingly, may at any time hold a long or short position in such
securities.
It is understood that this letter is intended for the benefit and use of
the Special Committee and does not constitute a recommendation to the Special
Committee or any holders of Herbalife common stock as to whether to tender their
shares in the Tender Offer or how to vote in connection with the Merger. This
opinion does not address Herbalife's underlying business decision to pursue the
Transaction. This letter is not to be used for any other purpose, or reproduced,
disseminated, quoted to or referred to at any time, in whole or in part, without
our prior written consent; provided, however, that this letter may be included
in its entirety in any tender offer document or proxy statement to be
distributed to the holders of Herbalife common stock in connection with the
Transaction.
Based on and subject to the foregoing, it is our opinion that, as of the
date hereof, the Consideration to be Received, together with the Supplemental
Payment, is fair, from a financial point of view, to the shareholders of
Herbalife, excluding the Principal Shareholder.
Very truly yours,
BEAR, STEARNS & CO. INC.
By: /s/ DAVIES B. BELLER
------------------------------------
Davies B. Beller
Senior Managing Director
A-2
